Blockchain is quite difficult to understand. This is the technology used for the creation and management of cryptocurrency, of which Bitcoin is the best known. It is also used in many areas to ensure information security, transparency and equality of persons . It allows to save time , to dispense with a central control organ , etc. We will try to give a long contextual definition to facilitate your understanding!
1- Creation of a universal crypto currency
The creation of cryptocurrency as well as its management uses blockchain technology . We hear more and more about “Bitcoin mining”, which consists of verifying the validity of a set of transactions (of Bitcoin) by complex mathematical calculations using powerful software. When these transactions are committed, a block is formed. This is linked to all the blocks formed previously, constituting the blockchain, called blockchain . You can get a certain amount of Bitcoin through a mining operation.
2- Equality and the same opportunities in everything
Thanks to cryptocurrency, the differences between currencies no longer exist. The blockchain is not only used for the creation and management of cryptocurrency, it also serves as a digital tool for the storage and transfer of information reliable, transparent and secure. Transactions can be information and when a set of information is validated by mining, a block is formed. This peer-to-peer network operates without a supervisory body and offers the same status to all minors (users) . Used in banking, insurance, home ownership, etc., blockchain offers the same opportunities to everyone!
3- Blockchain: Ultimate security of a transaction or an exchange
Once a block has been validated, chained to the block network, it can no longer be modified. As it takes the participation of all miners to validate a transaction , it is necessary to obtain a consensus between them to modify or delete a block. It’s almost impossible! Forgery is therefore also unlikely. It is possible to create a cryptocurrency that can only be used for a specific type of transaction (only to finance an NGO for example), making corruption and theft impossible.
4- Blockchain: Guarantee of flawless transparency
All the details of a transaction are visible to everyone, along with all of the history of previous transactions . Whether it’s cryptocurrency or news, transparency is absolute. If the network is public, anyone can view its information. Public accounting, legal affairs, land titles, transactions and collaborations carried out by a public company: all this can be seen in the public eye thanks to the blockchain.
5- Blockchain: Keeping an archive accessible to all
The blockchain is the best archive that can exist! It can serve as a register to guarantee the traceability of a food or pharmaceutical product . In the public sector, the blockchain could record all information about a citizen, his diplomas, his tax returns, etc. He could consult them whenever he wanted. In the case of the purchase of land, if the cadastre was registered in the blockchain, it would facilitate access to property, shortening the formalities.
6- Blockchain: A facilitator of formalities
As this peer-to-peer technology works without a central control body, checks are no longer useful, since a block can only be validated if everything fits perfectly . Anomalies and errors are therefore irrelevant. The services of notaries, lawyers, bankers, etc. are largely replaced by the performance of the blockchain. Intermediaries are no longer useful! These professions must adapt, as the Village de la Justice is already doing with Legapol , a “Contract management” application managing contracts and documents.
7- Blockchain: A perfect sharing network
If a person’s information (documents) were stored in a blockchain, he could easily access it for a job application or a building permit application, for example. Administrative formalities would no longer be necessary , because everything would be accessible in the blockchain, at one point, and this, at any time, by the parties concerned (citizen, State, recruiter, etc.). In research (scientific or not), sharing would be facilitated even if the researchers were on two ends of the earth.
8- Blockchain: The perfect management tool
Thanks to the blockchain, management companies would save up to 40% on the cost of transactions, because all information and documents are already available, verified and validated on a single network . Transactions are done much faster, at a much cheaper cost. The management of fund assets (purchase of securities) and the management of portfolio securities are greatly facilitated. The blockchain makes it possible to create what is called a smart contract or smart contract, automatically managing a contract , executing the conditions and terms without human intervention (banks, payment platforms , lawyers and notaries).
9- Blockchain: An ideal verification and authentication tool
We could no longer lie about the origin and composition of a product, labels, diplomas, etc., because validation is strict and complex with blockchain . Forging a document or creating a new document in the blockchain requires the participation and consent of all miners or nodes in the network. This is impossible unless you are the most skilled hacker in the whole world. In any case, as soon as there is an anomaly, mining is impossible.
10- Blockchain: Saving time or wasting time?
The blockchain can be applied in many areas, including insurance, the transfer of assets (money, securities, stocks, bonds, votes, etc.) … In a legal framework, the Council of Ministers adopted in December 2017 an ordinance allowing the transfer of ownership of certain financial securities via the blockchain . The use of blockchain saves time by avoiding red tape, eliminating central control bodies, and eliminating distance, etc. However, this technology is still far from being accessible to all given the power of the computer to be used and the energy consumed. In addition, mining takes a long time.