What is blockchain is technology and how does it affect our lives and society?

Before we discuss how we can apply blockchain in our daily lives, let's talk about what blockchain is and how it works?

Blockchain is an open distributed database, essentially a computer file used to store information (data).

The blockchain gets its name from its structural features: the file consists of blocks of data, each linking to the previous block to form a chain, each block contains data such as a record of a transaction and a record of when the block was edited or created, and the information (data) is time-stamped, which is where the blockchain comes from.

Crucially, unlike centralized databases owned by corporations or government agencies, blockchains are not under the control of any person or entity, and data is replicated (distributed) intact across multiple computers.

Because it is a decentralized way of storing and accessing data, this makes it exceptionally secure. Because, unlike a centralized database, there is no single point of entry for an attacker, the data is more secure.

Besides the two main features of decentralization and security, the features that make blockchain a leading technology that sets it apart from the rest are:

Incorruptibility: once it is in the blockchain, no information can be altered, not even by an administrator who can change this information. It gives the blockchain the advantage of being easily auditable.

Accessible: all nodes in the network can easily access the information.

No third party: Blockchain helps in peer-to-peer transactions, so there is no need for third party approval whether you are trading or exchanging funds. The blockchain itself is a platform.

The impact of blockchain technology?

I. The open and tamper-proof attributes of blockchain technology provide the possibility of a decentralized trust mechanism, with the potential to change the financial infrastructure. Various types of financial assets, such as equity, bonds, notes, warehouse receipts, fund shares, etc., can be integrated into the blockchain ledger and become digital assets on the chain, which can be stored, transferred, and traded on the blockchain. It makes its application in the financial field promising. For example, there are typical applications in cross-border payment, insurance claims, securities trading, bills and so on.

Second, the current IoT ecosystem relies on a centralized network management architecture, where all devices are connected through cloud servers. As the network scales, the infrastructure and maintenance aspects of centralized cloud servers, large servers and network devices will take up high costs.

In the decentralized IoT, blockchain is the framework that facilitates transaction processing and collaboration between devices where interaction occurs, and each device on the network can operate as an independent, micro business entity.

Third, public **** services are a factor in promoting economic growth and social progress, and the supply of public **** services can have a significant impact on all types of subjects and systems, culture, attitudes, and behaviors in the process of political, economic, and social development. Traditional public notarization relies on the government, and the limited data dimension and unestablished historical data information chain often lead to the government and schools not being able to obtain complete and effective information. The use of blockchain allows for the creation of tamper-proof digital certificates. A new authentication mechanism can be established in the field of digital copyright, intellectual property, certificates, and public welfare to improve the management of the public **** service field.