Although most people started learning about the “blockchain” because of Bitcoin, its roots and applications are much deeper than that.
Blockchain is a technology in itself. Bitcoin gives you power, and it’s basically the reason * so many * new ICOs are flooding the market. Creating an “ICO” is very easy (there are no barriers to access).
The purpose of the system is to create a decentralized database. This means, in particular, that a computer network (usually operated by some people) can act in the same way as a larger company rather than relying on data such as “Google” or “Microsoft”.
To understand the implications of this (and therefore where technology can lead the industry) – you need to look at how the system works at the grassroots level.
Founded in 2008 (1 year before Bitcoin), it is an open source software solution. This means that the source code can be edited by anyone. However, it should be noted that the central “repository” can only be modified by a few individuals (so the “development” of the code is not essentially free for all).
The system works with what is known as the cheap tree – the type of graphical data that was created to enter version data into graphical systems.
Merkle trees have been used in other systems; especially “GIT” (source code management software). Without becoming too technical, it basically stores the “version” of a data set. This version is numbered, so it can be loaded whenever the user wants to recall the older version. In the case of software development, it means that a set of source codes can be updated across multiple systems.
The way it works – that is, saving a huge “file” with updates to a central data set – is like “Bitcoin” and all the other “crypto” systems. The term “crypto” means “cryptographic”, which is a technical term for “encryption”.
Whatever the key operation, the “paradigm” that offers the industry the real benefit of a broader “chain” is almost certain.
The idea of “Industry 4.0” has been floating around for decades. Often confused with the “Internet of Things,” the idea is that a new layer of “autonomous” machinery could be introduced to create even more efficient manufacturing, distribution, and delivery techniques for businesses and consumers. Although it is often played hard, it is never accepted.
Many specialists are looking at technology as a way to facilitate this change. The reason is that this interesting thing about “cryptography” – especially as shown by those like Ethereum – is that different systems built on it can be programmed to work with a layer of logic.
That’s the logic that the IoT / 4.0 Industry has lost so far – and why so many are looking at the “blockchain” (or equivalent) to give new ideas a basic standard for progress. This standard will give companies the ability to create “decentralized” applications that enable smart machinery to create more flexible and efficient manufacturing processes.