The term “blockchain”, which refers to a chain of blocks, has become very common these days. When this term first began to be used it was to relate it exclusively to Bitcoin, the first successfully created cryptocurrency. But today, this technology is acquiring a level of importance much higher than anticipated from the beginning.
Blockchain technology was developed to allow the implementation of the Bitcoin system. Keeping a single, detailed and unalterable record of all operations carried out with the cryptocurrency. But its creation also opened the doors towards the path of decentralization of financial systems. In addition to information, communications and many other areas of society.
Importance of technology in the economic context
In the economic context, the greatest advantage that this technology presents is that of allowing anyone access to financial systems in an easy and secure way. However, in many places in the world the gap between society and financial systems is enormous. Something especially seen in developing countries. Where There are at least 2 billion people who still do not have access to current banking systems.
In a release issued by the World Bank in 2018 on the report of Measurement of Financial Inclusion and Financial Technological Revolution It was highlighted that: "Having access to financial services is a crucial step in reducing both poverty and inequality". Also mentioning that current technological advances can be used to include these people in financial systems. Considerably reducing the levels of exclusion.
Likewise, according to studies carried out by specialists, financial exclusion is one of the main causes that slow down development in several countries. Well, since there is little accessibility to the traditional financial system, many citizens cannot start economic projects that allow them to achieve a better quality of life.
At this point, the use of blockchain technology can help break this distance. This by allowing better and more fluid accessibility for all users to a decentralized financial system. A system that will also allow them to have total control over their finances and absolute financial freedom.
Thus, thanks to blockchain, it is possible that these billions of unbanked people can take their first step towards economic empowerment. A step that will contribute to the development and growth of the countries where they reside. And all thanks to the fact that they now have accessibility to modern financial systems. That allow them to manage their money themselves, the possibility of saving and accessing tools that help them develop.
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What is blockchain technology?
We can define the blockchain as a highly efficient technology for data and information storage. A technology that allows each of the nodes interconnected to your network to manage an exact copy of your records. Thus eliminating the need for a central authority to control information. And at the same time, guaranteeing a practically unalterable system of high security, reliability and transparency.
Furthermore, thanks to its many features, This technology has multiple applications in almost all sectors of society. For example, economics, politics, food, health, file management, data storage, communications and many others.
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Is society really embracing this technology?
A question that many ask is is society really adopting blockchain technology? A valid question with a simple answer: Yes, the community around the world is adopting blockchain.
Slowly and gradually, society is doing it. And this is something that we can see reflected in the high use that cryptocurrencies are currently having compared to previous years. And not only that, just go to any space in the neighborhood to see that at least one store or business accepts the use of cryptocurrencies as a payment system.
Furthermore, as said at the beginning, the blockchain was developed to support cryptocurrencies, initially Bitcoin. But its implementation did not stop there. Inventiveness led to the development of different systems that sought to massify and magnify their reach. The objective is clear, to make blockchain and cryptocurrencies a reality in the face of the economic control systems that governments and banks impose on us.
Source: Statista 2020
After all, today (Q1 2020) we can already count at least 50 million users of cryptocurrencies or some kind of technology related to blockchain. According to the report issued by the statistics company The report of Statista.
At first glance the data reflected in this report seem like small numbers. But taking into account the young age of cryptocurrencies, they are actually strong numbers that are consolidating year after year.
Blockchain against cases of corruption and other crimes
Likewise, with current implementations, the blockchain reminds us that Centralization and concentration of power in a few can lead to acts of corruption.
Surely you have heard many cases of fraud or embezzlement of funds. Which are some of the crimes related to white collar crimes that normally occur within banking or administration systems. And they can be avoided more efficiently and effectively thanks to the implementation of the blockchain. Imagine a government that exposes all its income and expenses in all its areas. And it also does so publicly on an auditable and non-modifiable blockchain. It would be the most transparent and trustworthy government in the world; something we could achieve using blockchain.
In the use and implementation of this decentralized technology, the need for controlling authority or intermediaries becomes unnecessary. Thus eliminating the possibility that third parties could corrupt the system to use it for their own benefit. Likewise, this principle can be applied to multiple sectors and areas of society. Therefore, an incredible growth has been seen in the adoption and use of blockchain in other sectors.
Blockchain in non-financial systems
For instance, In non-financial data recording systems, blockchain plays an important role. If we talk about patents and intellectual property, a person or company can enter an encrypted message in a block of the chain. Just as Satoshi Nakamoto did in the genesis block of Bitcoin.
With this action, said person or company can demonstrate in the future that it has been the first to discover or develop a particular technology. Since within the chain the date and time in which said block was mined is recorded. And considering the inalterability of the blockchain, It is a fairly secure and reliable system for recording data and information..
This could lead to Domain Name Services (DNS), digital identity system, voting systems, secure and practically tamper-proof. Some uses are still under construction, others are already a reality among us, such as the case of DNS and digital identity offered by projects such as NameID of Namecoin or Ethereum Name Services (ENS).
Another important point to highlight about this technology is that it does not allow data falsification. A problem that may be present when handling digital data with unsecure technologies. Where documentation can be easily copied or reproduced.
On public blockchains, despite their transparent and auditable nature, no person can make a copy of the data or falsify the information found there.
Other important implementations of the technology
Another example in the adoption of blockchain are the smart contracts or smart contracts. This implementation is one of the most outstanding and notable of this technology, which eliminates the need for a physical paper contract and replaces it with a smart one. A contract where the word “smart” is described in all its splendor.
Smart contracts are designed and programmed to execute automatically when established conditions are met. So they can be implemented safely and confidently for anything we can imagine.
Likewise, The use of blockchain in the logistics, food and health sector is becoming increasingly important. In each of them, the blockchain can be a tool capable of helping to develop more secure, resistant, interoperable and, above all, decentralized systems. This technology has multiple characteristics and qualities that can help optimize the different processes that occur in these sectors.
Benefits and development of technology in Spain
Blockchain is capable of providing great solutions in any business model that requires the distribution and confirmation of data in a decentralized way. Therefore, in general, it allows information to be secured from its origin. As well as in all stages of process, use and distribution. With the guarantee that it cannot and has not been deleted, altered or modified. Providing high security, confidence and efficiency at all times.
In this sense, on May 17, the World Telecommunication and Information Society Day. An event where the great relevance of blockchain technology in these times of crisis was highlighted.
During the event, a spokesperson for the Spanish technology and innovation company atSystems He mentioned that today's society requires tools that allow us to enjoy a higher level of confidence. In reference to the management of information and communications.
“For decades we have had technological components to meet the needs of information exchange. However, we lacked a technology that would allow us to establish trust, as Blockchain can do in this situation. This technology now makes more sense and relevance than ever.”
In this context, blockchain is called the “truth machine.” Thanks to its unalterable, reliable and transparent record qualities. That allow a secure process for the distribution of information.
Without a doubt, this technology is here to stay and revolutionize the way traditional systems operate. Blockchain technology offers the world a new paradigm in data recording, administration and management. Proposing a way to carry out these processes in a much more efficient, simple but highly secure way.
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