Although most people just started learning about “blockchain” because of Bitcoin, its roots – and applications – go deeper than that.
Blockchain technology to itself. It empowers Bitcoin and is the main reason why so many * new ICOs have flooded the market – creating an “ICO” is ridiculously easy (no barriers to entry).
The core of the system is to create a decentralized database – which means that a network of computers (usually managed by individuals) is able to operate on a larger organization rather than relying on the preferences of “Google” or “Microsoft” to store data. Like.
To understand its implications (and thus where technology can take over the industry) – you need to look at how the system works at a basic level.
Created in 2008 (1 year before Bitcoin) it is an open source software solution. This means that anyone can edit and download the source code. However, it is important to note that the central “repository” can only be changed by a specific person (so the “development” of the code is basically not free for everyone).
The system is known as the Marshall Tree, which is a type of data graph designed to provide access to versioned data on computer systems.
Merkle trees have been used quite effectively in other systems; Significantly “GIT” (source code management software). Not getting too technical, it basically stores a “version” of sets of data. This version is numbered and can be loaded whenever the user wants to recall the old version. In the case of software development, this means that a set of source code can be updated on multiple systems.
The way it works – saving a huge “file” with an update to a central data set – basically powers the choice of “Bitcoin” and all other “crypto” systems. The word “crypto” simply means “cryptographic”, which is the technical term for “encryption”.
Regardless of its core functions, the real advantage of adopting a larger “on-chain” is that it certainly provides the “example” that the industry provides.
An idea called “Industry 4.0” has been floating around for decades. Often associated with the “Internet of Things”, the idea is that a new layer of “autonomous” machinery can be introduced to create more efficient production, distribution and distribution strategies for businesses and consumers. Although it has often been damaged, it has never really been accepted.
Many scholars are now looking at the technology to take advantage of this change. The interesting thing about looking at “crypto” is that – especially as evidenced by Etherium’s preferences – the various systems built on it can actually be programmed to work with a single level of reasoning.
This argument is what IoT / Industry 4.0 has lost so far – and why many are looking to the “blockchain” (or equivalent) to provide a base-level value for new ideas to move forward. This standard will provide the ability to create “decentralized” applications that enable intelligent equipment to create more flexible and efficient manufacturing processes.