Why Blockchain is The Key to Data Privacy in The Future
For a variety of reasons, this period in the twenty-first century will be remembered fondly by future generations. Society is undergoing tremendous and abrupt transformations, which goes without saying when it comes to the influence of technology in our daily lives. Technology, in reality, is the primary force of change in our society. Technology will continue to be the most important factor in our lives in the future, as we become more and more reliant on it for practically everything daily. Consider this: we spend the majority of our time on this strange thing we built called the internet, and in exchange, we have evolved it to the point where we are willing to share practically all of our most personal information with this mysterious virtual realm. We also coordinate our most fundamental and existential demands online, as well as speak with our closest friends and family members, as well as convene with other individuals. Consider this as well: there are over 30 billion devices connected to the internet, representing more than half of the world’s population. These dizzying figures demonstrate that it is impossible to describe precisely how dramatically our lives have altered in the last decade alone. In the 2000s, only 20 years ago, no one had a smartphone in their hand, and only a small percentage of the population had a home computer.
In what ways has our collective reliance on the internet impacted our lives? As a result of the digital transition that is currently underway. As evidence of this, the majority of crucial services are now available online, as is social media, and practically every other resource available can be obtained on the internet. Millions of us no longer even bother to go to the office for work, preferring to work from the comfort of our own homes instead. To emphasize this idea, even more, consider the fact that the internet is transforming schooling. Finance? That too. We’ve even made the transition from paper money (FIAT currency) to digital currencies, which will eventually render paper money (FIAT currency) obsolete. Medicine? You may now consult with doctors online and have your medicines delivered to your door. Shopping? You can now have packages delivered to you by a drone that is connected to the internet. It would be hard to describe all of how technology has made our lives better. You name it, and the internet will most likely be able to complete it for you.
Although everything appears to be in order, what are the disadvantages? There is, however, a significant and vexing disadvantage: data privacy. Regarding data privacy, there have been significant developments in this area as well in recent years. Similarly, trust in big tech corporations and the government is at an all-time low, according to recent surveys. Data privacy, data security, and personal anonymity are all topics that are currently on everyone’s mind. In the same way, people are turning away from mainstream technology items out of a desire to be free and unobserved, and this is happening. So, the question is, how will new technologies upset the status quo in the area of personal privacy? This is one of the reasons why the cryptocurrency is positioned to become the private currency of tomorrow. The anonymity afforded by blockchain technology is not limited to the financial sector, as numerous other industries are already reaping the benefits of the technology’s inherent secrecy.
Blockchain technology, which can save our species, serves as a tying factor in this story.
What is Blockchain Technology And How is it Used?
According to IBM, one of the founding fathers of information technology, blockchain technology is “a shared, immutable ledger for recording transactions, managing assets, and building trust in a distributed computing environment.” This is a very simple and technical method of describing blockchain technology, which has the potential to fundamentally alter our civilization. To create an open-source decentralized ledger system, blockchain pioneers such as cryptographers, mathematicians, and computer scientists collaborated with industry experts to develop the technology.
The technology itself comes from a mysterious, though unproven individual known as Satoshi Nakamoto, who is responsible for the invention of bitcoin. Blockchain arose out of nowhere with the announcement of a P2P (peer-to-peer) version of the paper money that we are all familiar with at the time. This occurred between the years 2008 and 2009. Bitcoin was to be the term given to this revolutionary new technique of interacting with currency. The inner workings of Bitcoin, which is based on the breakthrough blockchain technology, were revealed to the rest of the world in 2017.
Also see Is Blockchain Technology the Future of Transactions? for more information.
The Promises of Blockchain Technology in Terms of Improving Security and Privacy
A recent article in the Financial Times stated that “Blockchain is to Bitcoin what email is to the internet.” The large-scale electrical system on top of which you can develop application functionality “Money is just one example.” Blockchain has a variety of applications, with currency being merely one of them. These are the ones:
How Blockchain Promises to Improve Security And Privacy
Supply chains are being closely watched.
Digital identification and biometrics
In digital marketplaces, the exchange of digital data is encouraged.
Copyright and royalties are protected by the law.
Voting using the internet
Any business transactions involving the use of paper and paper trails
Creating a data backup
Creating smart contracts between numerous parties is a complicated process.
Tax compliance and regulation are important.
Medical records should be kept safe.
Internet of Things (IoT) monitoring (Internet-of-Things)
As you can see, blockchain technology, like any innovative state-of-the-art paradigm, has trickled down from specialists into the public realm, and it is poised to fundamentally alter the way we conduct ourselves as a society. The internet was previously considered a military project, but now it is used by 5-year-olds and 90-year-old grandmothers alike.
Most crucially, blockchain, in addition to being practically instantaneous and extremely efficient, eliminating third-party risks, and providing untraceable encryption, has the potential to significantly alter the realms of cybersecurity and data privacy. Furthermore, blockchain eliminates the necessity for centralization, such as the requirement for someone to own or operate your assets. It provides you with the opportunity to control transactions while also providing you with an additional piece of mind. There are several major objectives of blockchain technology, including complete transactional anonymity, rapid data transfer, high-level data encryption, as well as the elimination of the need for paper and paper trails.
For example, consider the following real-world scenario: you desire to purchase a house and must go through a multi-step process to do so. Blockchain technology can streamline this process. It is necessary to retain legal counsel simply to determine the validity of the transaction. Second, you must go via a real estate agent, which is a time-consuming process that results in you having to spend even more money in fees. All of this requires physical exertion, such as commuting, waiting in traffic, and returning and forth numerous times per week. With a blockchain-based real estate platform, you can check the legality of the real estate (as well as the actual real estate), avoid paying lawyer and agency fees and save money on real estate. The real estate property can also be registered digitally, which eliminates the need for financing and notary procedures. Furthermore, automated smart contracts vastly improve the process of transferring ownership and the transfer of ownership itself. In the end, the payment is instantaneous, completely confidential, and completely safe. The entire procedure is legal and binding, and it has been vastly improved as a result.
Finally, let’s take a look at how blockchain technology is affecting voting, governance, and anti-corruption initiatives. Blockchain and cryptocurrency are becoming increasingly popular in some places, such as Switzerland and Dubai (Smart Dubai), which are making significant efforts to become blockchain and cryptocurrency-friendly in all parts of their operations. Dubai hopes to take advantage of this technique to become the happiest city on the planet. Voting is an example of this, as are transparent government processes, which are two more examples. The implementation of blockchain technology immediately eliminates corrupt and secret processes, while also providing the general people with visibility into how the government operates. It also makes voting more fair, transparent, and open to public scrutiny and scrutiny.
Of doubt, there will be some difficulties in deploying blockchain technology over the entire planet. For blockchain transformation to be successful, all stakeholders in a country or city must participate and agree with the transition. Everything from people to company owners, and even the government itself, falls under this category. It is estimated that the savings from removing document processing as a result of blockchain operations will amount to more than one billion dollars per year, according to the Smart Dubai webpage.