Hello subs! Thank you to the 22 new subscribers who’ve joined Cryptalks on the journey of learning about the future. Our community now stands strong at 29 members. Really stoked to have y’all!
In the previous post, we learnt about the progression of the internet, it’s time to look at the technology that powers Web 3.0. Blockchain technology.
What is blockchain technology? It is a method of storing data in a decentralized manner. This data is immutable (cannot be changed) and transparent (accessible to everyone). In the case of cryptocurrencies, the data stored is generally transactional in nature. Data is stored in blocks which are linked in a chain. Hence the name.
Each block contains 2 elements other than data:
Hash - a cryptographically generated unique number
Hash of the previous block
Imagine a cube having 3 compartments. We’ll call this cube Block 1. Compartment 1 has some data stored in it. Based on this data, compartment 2 automatically generates a number (hash) using cryptography. Any change to the data in compartment 1, will change the number in compartment 2, making the block immutable.
Let’s say there’s another block - Block 2. In order for Block 1 and Block 2 to be connected, we use the 3rd compartment of the blocks. Compartment 3 stores the hash of the previous block. The hash number generated in Block 1 will be stored in the 3rd compartment of Block 2. Similarly, if we had another block, it would store transactional data in compartment 1, a unique hash in compartment 2 and the hash of the previous block in compartment 3.
Now let’s say the 29 users reading this post are using this blockchain. Every member gets a copy of the blockchain. This copy is called a node. Math isn’t my forte but I think we would have 29 nodes for our blockchain. Since all of us have a copy and it isn’t stored on a single server, it makes the system decentralised. Also, all the blocks created can be seen by every node. Thus making it transparent.
This format of having a distributed ledger completely eliminates the chance of having a single point of failure which is prevalent in traditional databases. It also invalidates a bad actor trying to make changes to the data because if they do change the data on their respective node, the other nodes can verify the data and reject the changes thus maintaining the sanctity of data on the blockchain.
Some blockchains have a 4th element in each block which adds more security to the technology. Timestamps of each block are recorded every time a new block is mined (created). Not only would someone have to change data on all the nodes but also manage to maintain the timestamps of the transactions. This makes blockchains tamper-resistant.
At this point you’re probably like…
Just a few more times, I promise.
Now you’re probably wondering that ‘okay there’s this cool new tech, but are there any real world use cases for this or is it just a fancy lab experiment?’. I’m going to leave y’all with a few companies leveraging blockchain technology for their businesses. Y’all can DYOR (Do Your Own Research) for more.
Y’all are going to learn a lot of lingos like DYOR reading this newsletter because what is Web3 without lingos and vibes?! In fact, I’ll dedicate one post to these lingos in the near future.
Onto the examples then:
Circle is a FinTech company that enables businesses to accept payments in USDC, a stable coin pegged to the value of the US dollar. They leverage the power of public blockchains for payments, commerce and financial applications worldwide.
DHL needs no introduction. The logistics behemoth leverages Blockchain-powered logistics to track and record information related to shipments while maintaining the integrity of transactions.
Patientory is an all-in-one medical record system for patients and doctors alike, backed by blockchain technology. It solves one of the biggest problems in healthcare i.e fragmentation of data across different providers and clinics.
Propy is a global real estate marketplace that aims to “help brokers, agents and title companies migrate to a paperless remote closing.”
BurstIQ is yet another healthcare company that helps patients and doctors securely transfer sensitive medical information. Smart contracts establish the parameters of what data can be shared and even displays details of personalized health plans for each patient.
Now if you’re wondering what Smart contracts are, keep an eye out for the post next week because that’s what we’ll be talking about. Until then, don’t forget to DYOR.
Happy reading y’all, I’ll see you on the next one.
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Very informative & helpful
Looking forward for your next post.
Thank you