The blockchain technology is a very important invention of this age. The result of the ingenuity of a person or a group of persons hiding behind the pseudonym Satoshi Nakamoto, the blockchain tech has evolved into something bigger.
More and more people are now getting acquainted with this tech, and we’re quite sure that everybody’s already asking and huge and important question.
Distributed ledgers let the coding of simple contracts happens, and these contracts will execute once specified conditions have been met.
Ethereum is an open source blockchain project that was built specifically to make this possibility a reality. Even though it’s still on its early stages, Ethereum sports a huge potential to leverage the usefulness of blockchains on a global scale.
At present, smart contracts can be programmed to perform simple functions. For example, a derivative could be paid out when a financial instrument meets a specific benchmark, using the blockchain technology and Bitcoin for the automation of the contract.
Since the results are fully transparent and accessible to the public, the distributed database technology could really bring full transparency to elections or any other kind of poll taking. Ethereum-based smart contracts aid in the automation of the process.
For instance, the app Boardroom enables organization decision-making to happen on the blockchain network. In reality, this means company governance will be fully transparent and verifiable when managing digital assets, equity, or information.
Digital information can be infinitely reproduced and widely distributed. This has granted millions of users from around the world a goldmine of free information and content.
On the flip side, copyright holders have not been so lucky. They have lost control over their intellectual property and have suffered financially as an outcome. Smart contracts can protect copyright and then automate the sale of creative works online. This definitely removes the risk of file copying and redistribution.
Internet of Things (IoT)
The so-called Internet of Things, or IoT, is the network-controlled management of certain types of electronic devices. Smart contracts can make the automation of remote systems management very possible.
There will be a combination of software, sensors, and network, and this combination will facilitate an exchange of data between objects and mechanisms. And then, the result will increase the system efficiency, while also improving cost monitoring.
There is a sure need for better identity management on the World Wide Web. The ability to verify your identity is extremely important for the financial transactions that take place only. But, even though there are remedies for the security risks, such remedies at quite inadequate at best.
A distributed ledger provides improved methods for verifying who you are, along with the chance of digitalizing personal documents. Having a secure identity will also be very important for online interactions. A good reputation is quite one of the most important conditions for having a transaction online.
Developing digital identity standards is quite difficult, however. For one, a universal online identity solution requires strong cooperation between public and private entities, not to mention the technical difficulties that will surely go along with it.