Blockchain blockchain technology 2018 the complete guide to new blockchain revolution

Blockchain: Blockchain Technology 2018 - The Complete
Guide To New Blockchain Revolution!
Mark Sloss


Copyri ght 2017. Al l ri ghts res erved. No pa rt of thi s publ i ca ti on ma y be reproduced, s tored i n a retri eva l s ys tem or tra ns mi tted i n a ny form or by a ny
mea ns , el ectroni c, mecha ni ca l , photocopyi ng, recordi ng or otherwi s e, wi thout pri or permi s s i on of the publ i s her.
Li mi t of Li a bi l i ty / Di s cl a i mer of Wa rra nty: The publ i s her a nd a uthor ma ke no repres enta ti ons or wa rra nti es wi th res pect or the a ccura cy or
compl etenes s of thes e contents a nd di s cl a i m a l l wa rra nti es s uch a s wa rra nti es of fi tnes s of a pa rti cul a r purpos e. The a uthor or publ i s her a re not
l i a bl e for a ny da ma ges wha ts oever. The fa ct tha t a n i ndi vi dua l or orga ni za ti on i s referred to i n thi s document a s a ci ta ti on or s ource of i nforma ti on
does not i mpl y tha t the a uthor or publ i s her endors es the i nforma ti on tha t the i ndi vi dua l or orga ni za ti on provi ded.
The i nforma ti on herei n i s offered for i nforma ti ona l purpos es onl y. The pres enta ti on of the i nforma ti on i s wi thout contra ct or a ny type of gua ra ntee
a s s ura nce. The tra dema rks tha t a re us ed a re wi thout cons ent, a nd the publ i ca ti on of the tra dema rk i s wi thout permi s s i on or ba cki ng by the
tra dema rk hol der. Al l tra dema rks a nd bra nds wi thi n thi s book a re for cl a ri fyi ng purpos es onl y a nd a re owned by the owners thems el ves a nd a re
not a ffi l i a te wi th thi s document.


CLAIM YOUR FREE GIFT NOW
As a way of saying “thank you” for your purchase, we’re offering you a free special bonus that’s exclusive for our book readers.

SECRET “DELETED CHAPTER” BONUS

It’s a secret chapter that was cut out from the book for various reasons. (some were not appropriate, some were too powerful, too
taboo, etc) – but yours free!

Go to the link below before it expires!
/>

Blockchain: Blockchain Technology 2018 - The Complete
Guide To New Blockchain Revolution!

TABLE OF CONTENTS
Table of Contents
Introduction
Chapter 1. What exactly is the blockchain?
Chapter 2. How the Blockchain Works
Chapter 3. Blockchain and Cryptocurrencies
Chapter 4. Benefits of The Blockchain Technology
Chapter 5. Blockchain as a Service
Chapter 6. Blockchain Predictions of What Will Happen in 2018
Chapter 7. Conclusion
This book is meant to serve as a guide to help you understand what blockchain is and how to leverage its benefits. It’s in no way
intended to be a professional manual for anything including trading. If you need cryptocurrency trading advice, consult a
professional financial analyst.


INTRODUCTION TO BLOCKCHAIN
First, let me congratulate you for purchasing this book and “thank you” for choosing this copy. While you may not understand most
of the basics behind blockchain, I’m sure you know about Bitcoin and perhaps, Ethereum or Bitcoin Cash. Well, all these digital
currencies have one thing in common; they are written on the blockchain.
But that’s not all. Blockchain has many other functions besides providing cryptocurrencies with a basis to operate on. This
technology is regarded as the next big thing after the internet itself and therefore, learning its ins and outs can help you leverage
its advantages in the digital world.
Since much about blockchain can be confusing, this book has been written in most basic language, so even a tenth-grader can
understand much of the concepts discussed. We will kick off by defining what this tech is, how it operates, its applications, merits,
demerits and how it’s likely to change as the years go by.
This book won’t touch on the complex algorithms on how this technology is curated or anything that makes you think you are back
in college dealing with advanced algebra. Once again, there is an overwhelming number of blockchain books out there, so thank
you for making this one your number one choice.
Enjoy reading

~Mark Sloss


CHAPTER 1. WHAT EXACTLY IS THE BLOCKCHAIN?

A blockchain is a decentralized ledger where everyone’s transaction history is stored. This
ledger automatically gets updated in regular time frames, is accepted by the community as a
fact, and gets stored on every participant’s computer. This way, no central party has to govern
the network, as issues like double spending rarely exist in this ecosystem.
Instead of a central party dictating what is “real,” the community does so in a decentralized
manner. Blockchain technology thereby allows storage of any kind of information without
needing a governing body. This can be applied to any type of ownership, identification,
knowledge, or…currency.
Blockchain and digital currency.
Blockchain technology provides the infrastructure for a digital currency to exist without a
central bank. Currency is one of the many different applications that can run on a blockchain,
using the benefits of decentralization in the digital world.
Since this currency on a blockchain uses cryptography, it is called cryptocurrency.
What is a cryptocurrency?

In a cryptocurrency, any rule or regulation is programmed into the cryptographic algorithm that
governs the decentralized community using the currency. The combination of cryptography and
currencies gives crypto-currencies their name. This basically means a currency that is backed by


and made rare through cryptography.
Note that trust in a cryptocurrency network is derived from the underlying cryptography. Since
this is a new concept compared to thousands of years of using precious metals, it will take a bit
of time until more and more people start to understand the true benefits of the new system.
Blockchain and Cryptocurrency nomenclature.

To clear up some confusion, let’s define a few terms:
Blockchain: The immutable transaction history of a decentralized community.
Cryptocurrency: An application using blockchain technologies by which the transaction history
and therefore the exact amount of currency everyone owns gets stored via a blockchain.
Bitcoin (capital B): This is used to name the idea and protocol of the first decentralized
cryptocurrency on a blockchain.
Bitcoin(s)—lower case b: the currency itself.

WHAT WAS THE FIRST DECENTRALIZED CURRENCY?
There have been several cultures around the world that refused to have a centralized monetary
system. While it is very hard to say which one was the largest or first, the concept of Rai stones
on the island of Yap is quite fascinating and describes the concept of a blockchain and
decentralized currency in an easy to understand way. The Islanders did not own much gold, so
in order to have some kind of currency that everyone could have access to if they wanted, they
carved huge round stones out of limestone. They would then be used as currency. In theory,
every islander would have been able to do this, but it mostly became a specialized task done by
few, while the others preferred to sell products or services to receive such stones in return. The
system was decentralized, as it was completely open for anyone to join, and everyone had the
same rights.
Looking at blockchain and cryptocurrencies, you will recognize how similar this concept of the
Rai stones actually is—with the difference that Rai stones are physical, and cryptocurrencies are
digital. That is why cryptocurrencies need a blockchain as an underlying technology.
Blockchain has dominated media channels for quite some time now, leading to many people
becoming interested to know why this technology matters. It’s expected that as 2018 draws
toward its end, we will be able to know just how well blockchain fits into the nerves of the
society.



CHAPTER 2. HOW THE BLOCKCHAIN WORKS

The blockchain operates through consensus. This is an agreement from all the participants in a
blockchain regarding the truth about certain data. Cryptocurrencies operate around this
method to avoid a single entity from having dominion over every decision. Usually, when a
transaction has been dispatched, miners will review it and validate or discard it in unison.
In traditional systems, a single authority like the government, banks and other agents are the
ones to review everything and issue the green light. The problem with such centralized systems
is that they put too much power in a few individuals who can abuse it.
Consensus, if not configured properly, can open loopholes that can lead to system corruption.
For instance, since all you need for your transaction to be valid is other miners to confirm your
transaction, why not create thousands of miners yourself? They, in turn could confirm that
someone sent you millions of dollars. This would be called a Sybil attack, and may need a good
number of pages to describe it in full.

CONSENSUS ALGORITHMS
In order to avoid all this chaos, legit cryptocurrencies have developed consensus mechanisms
that govern the above-mentioned problems in a decentralized system:
Conflict of opposing information—one miner saying one thing and another saying something
else.
Possibility of creating fake miners who work in your interest and allow you to cheat.
Incentive mechanisms to motivate as many people in the system to participate in the
consensus and not only participating as a user.
While there are many more consensus algorithms in the making and they might be labeled
differently in different cryptocurrencies, these are the three most important ones:


Proof of Stake
Proof of Work
Proof of Importance
The latter is one of the least used so far. It might be adopted more in the coming years, but so

far Proof of Work has mostly been used. With a Proof of Importance consensus algorithm, the
participant with the “most importance” gets to say which transactions happened and also
receives incentives most often. Since the person will not be the only participant with
importance, it is a probabilistic mix of when they have authority and when someone else does.
How importance is established
Different cryptocurrencies have different mechanisms for that, but one factor is the length of
time someone is part of the system, combined with the number of other miners trusting them
by opting in to receive information from them. Compare it to social media. You are more likely
to trust the friend request of someone on Facebook that has been there for quite some time
already, has a legit looking profile, and many of your friends are already connected to this new
friend.
It is similar in the world of decentralization when Proof of Importance is used. Someone’s
importance percentage is based on the value the system decides, which assigns how much
“voting power” they have, how often they get to go first with transaction processing, and how
often they are rewarded.
The upside of this system is that, literally, anyone, poor or rich, can achieve a high level of
importance. The downside is that this system could be gamed by simply creating fraudulent
participants who then vote for each other, thereby creating importance. See it like a fake social
media account that people start to follow only because many others are following it. Few
blockchain algorithms are using this mechanism for this reason, and it probably still needs
some additional features to scale well.

Proof of Stake

The idea of importance can be taken a step further, where money resembles importance.
Basically, whoever controls more money in the system has more importance. As you might
already imagine, this system has a lot of critics, as it begs the question of how such a network
could be decentralized, if only a few rich accounts share all the consensus power. So far, only a
few blockchains are using this consensus mechanism, but for those that do, it seems to be

working well. The risk of one large player ruling it all is eminent, but the advantages of this
system are on the table:
The mechanism of understanding how much voting power you have is clear by simply
dividing the amount of money you stake (proof of your money by locking it in a
special contract for a given period of time), with the total amount staked by the
community. So, there is the possibility that while someone might have a lot of
money, they may still not have much voting rights because they are spending it on a
regular basis and not staking it as proof of his ownership. The math is clear and
simple. If you were to stake 1,000 coins, for example, and 100,000 coins are being
staked in total, you have 1% voting power and are expected to get 1% of the say and
1% of the rewards.
Since the rewards of the transaction system get shared with the stakers, whoever put
up more will get a larger percentage of the rewards. Therefore, you can calculate a
much more accurate return on your money on an annual basis, which might be an
interesting investment opportunity. For example, you know that a blockchain might
reward you with 5% of your staked-up capital per year. You stake 1,000 coins and
receive 50 coins every year for taking part in the consensus algorithm. Depending on
what these coins are worth, this can mean a lot.
Since money cannot be created out of thin air in a legit blockchain, the possibility of
fraudulent attackers, as in proof of importance is rather low.
Of course, there are also downsides. One of them, besides the rich getting richer, is the risk of
forking attacks. Let me give you a short overview: In proof of stake, if a blockchain forks (splits),
you automatically control the coins on both new chains. You just doubled your coins that you
can keep staking on either. Developers are still looking for good solutions in that regard. This is
different than proof of work, as here you have to make a decision on which chain you want to
invest your work into.

Proof of Work
Proof of Work, also called POW is the most used algorithm and the oldest of them all. It has

been adopted by most cryptocurrencies because it has already been tested many times and
found to be immune to forking attacks amongst other things.
In this method, the network will only recognize your worth by looking at your work-not the
level of importance or how many stacks of money you own. As a miner, you will have to
recognize transaction, validate it and put it on the block, so you can be the first to claim a
reward.

COMMON BLOCKCHAIN ISSUES
Scaling


Most financial companies, for example, transact around 2,000 transactions per second. This is
where blockchain technologies still have a major limitation: Since every computer in the
network needs to keep a record of the entire network, the speed of the network is restricted by
the speed of the slowest node. Blockchains limit the amount of transactions per second to
avoid a centralization of the computing power by large and strong nodes, which can store and
process these larger blocks, but also to keep the blockchain’s size from blowing up too fast.
Some of the most heated discussions in the crypto-community are about the suggested block
size with its upside being the ability to allow for more Tx/s. However, that brings with it the
downsides of storage and processing capabilities.
Bitcoin for example allows for around 6-7 Transactions per second, Ethereum around 15 Tx/s.
In Bitcoin, a miner therefore gets around 4,200 puzzle pieces to fit every 10 minutes into a
puzzle (7 Tx/s * 60s * 10min = 4,200 Tx per block). Such a block in Bitcoin takes up 1MB of
space. If you wanted to store more Tx within a block, you either have to make the size of a
transaction smaller (less data per Tx), or you increase the blocksize (more data stored).
Segragation Witness (SegWit) solves that partially from the size angle.
SegWit ( Segragation Witness
In late 2017, Bitcoin introduced an update called Segregated Witness, in short—SegWit—to
enhance Bitcoin’s scaling. If you remember the puzzle piece analogy of a cryptocurrency
transaction, you remember that half the puzzle is the transaction information itself and the

other half is the signature of the private key. With the SegWit update, the transactions got
structured in a different manner, where now the signature was taken away and stored
“segregated.”
Instead of needing an area of the puzzle piece to store the signature, which is only needed for
verification and not for actual information, it can now be stored differently, for example as a
type of color on the piece itself. That’s why it is called a “segregated witness.” Since the puzzle
pieces are now only half the original size (the signature is not taking up space anymore), twice
as many SegWit transactions can be stored in the same 1 MB block (around 8,400 SegWit puzzle
pieces fit into a complete puzzle).


For the user, SegWit is a soft-fork, meaning they can still send the old transaction format, just
like they can use an older version of WhatsApp and newer versions can still understand them.
“Old” Bitcoin addresses for example start with a “1,” SegWit addresses start with a “3.” It will
take a few more months until the full storage capabilities are being utilized, and of course, the
blocksize and the scaling debate of Bitcoin will continue.


CHAPTER 3. BLOCKCHAIN AND CRYPTOCURRENCIES
While blockchain is poised to do a great many different things in the near future, for now, the
most important thing you will want to keep in mind is that blockchains make cryptocurrency
possible. Bitcoin jumped in price to more than $19,000 during 2017. While this price has
pushed it out of the league of many amateur investors, there are more than 1,000 different
cryptocurrencies on the market these days, so there are plenty of opportunities out there for
those who are interested in a potentially profitable investment. This is not to say that there
isn’t risk involved as well, however; it is important to keep the risks of cryptocurrency
investment in mind as well before making any investments in the space.

Here are the advantages and disadvantages of cryptocurrencies:

Advantages
Reduced probability of fraud
As cryptocurrencies are an all-digital currency, this means there is less likelihood of fraud taking
place around them; they cannot be counterfeited, and there is no way for one member of the
transaction to reverse it once a transaction has taken place.
Extreme access
Currently, there are three billion people in the world who have access to the internet but do
not have regular access to any form of exchange. This leaves the cryptocurrency market with a
lot of room to maneuver, and it is expected to see significant growth as it gains wider
acceptance. This means that an increasing amount of business will take place purely through
digital currencies, which means those who invest in cryptocurrency now aren’t just likely to see
an increase; they are likely to see a dramatic increase.
Less chance of identity theft
Once you have bought into a cryptocurrency, there is less chance that you will have to worry
about iden ty the than when working with tradi onal online exchanges. This is a concern in
tradi onal instances, as credit or debit cards are charged with each new transac on, which
means that there is a far greater opportunity for iden ty thieves to find a way to crack the
system and make off with personal information.


Lower costs involved
Despite the fact that every cryptocurrency transac on comes with an accompanying transac on
fee, the fees for u lizing a cryptocurrency exchange are almost always going to be lower than
what the traders who use more traditional exchanges pay on a regular basis.

Disadvantages
Unpredictable future

While Bitcoin has proved to be a winning investment for the past eight years, and Ethereum
has grown year over year since its inception, despite some down times in-between, that

doesn’t mean that this will continue to be the case in the long-term. There simply not enough
past data to say with any real degree of certainty what the market will look like in a year from
now, much less 5 or 10, which means that both the potential for loss and the potential for gain
are virtually limitless. Basically, what this means is that up until the time that the
cryptocurrency market stabilizes, any dollar you put into Ethereum is just as likely to be worth
more next year than it is today as it is to be completely worthless.
Purely digital
While the digital nature of cryptocurrency is often touted as a positive, it is important to
consider its negative aspects as well. For example, as a purely digital construct, if you were
keeping your cryptocurrency in an exchange that had a server error that resulted in a loss of all
its backup drives, what would happen to your currency then? Likewise, what were to happen if
you put your coins into a physical wallet that then stopped reading on your computer?
Both of these cases are unlikely to happen, but if they were, then your cryptocurrency would be
gone as if it had never existed in the first place. Furthermore, the massive potential for profits
means that hackers are never going to stop trying to access these exchanges, so eventually,
they will succeed. When investing in cryptocurrency, it is important to value security as highly
as possible because there is very little standing between your investments and the void.
Extremely volatile
While bitcoin can be thought of as the most stable cryptocurrency, it is still six times as volatile
than investing in the S&P 500 and five times as volatile as investing in gold. While this means
there is an increased chance of profit, it also means there is an increased chance for risk as


well. A vast majority of all cryptocurrency transactions are currently speculative in nature,
which means that investors are buying and holding them. This, in turn, creates a bubble that
has to eventually burst sooner or later. The trick with the bubble is to get in as early as possible
and keep an eye out for signs that it will burst so you can get while the getting is good.
BENEFITS TO TRADING IN BLOCKCHAIN CRYPTOCURRENCIES

Global currency

When it comes to standard currency, the number of things that can influence the price is
naturally going to be fairly limited. The opposite is true for cryptocurrencies, however, it is
difficult to tell what will set investors off before it happens. Any currency news anywhere has
the potential to set prices shifting dramatically; in fact, several of Bitcoin’s most significant
moves have come about due to the introduction of controls for capital in Greece and when
China devalued the Yuan.
Market is always ready
While the Forex market is traditionally thought of as the most robust market, as it is open 120
hours each week, the cryptocurrency market is open 168 hours each week, and trades are
always happening regardless of what part of the world is currently active. Currently, there are
about 100 major cryptocurrency exchanges in the world who all offer various levels of trading,
along with differing rates based on their level of service. As such, it should not take more than
a little research to find the one that is right for you.
This can also be seen as a negative, depending on your tolerance for risk, as these factors can
be enough to generate large swings on a daily basis. In fact, price shifts of more than 5 percent
are common on most days for the larger cryptocurrencies, and the smaller ones aren’t
surprised if they see 15 percent movement or more.
High volatility
The fact that cryptocurrencies are not regulated by any higher power, coupled with the fact
that they are a new form of investment and the fact that any event anywhere can lead to
essentially unexpected movement, all combine to create an extremely volatile market. Swings
of more than 5 percent in a single day are not uncommon for several different types of
cryptocurrency, and the smaller currencies are capable of swinging with even greater frequency
and to larger degrees.


A pointer on the Ethereum Platform
Of all the cryptocurrencies on the market today, the one that is the most dedicated to
improving the quality of the blockchain experience as a whole is Ethereum. While its
cryptocurrency, ether, sees a fair amount of speculation, it is mainly used to pay for

transactions with smart contracts and applications designed to run on the Ethereum platform.
It has already seen about half as many transactions as Bitcoin, despite only being around for a
third of the time. It is also more firmly focused on the future, with its improved interactions
with smart contracts and its decentralized app platform, as well.

Perhaps more importantly, if you look at the transaction chart for Bitcoin, then you will see
that it is nothing but peaks and valleys. It’s true that things tend to move in an overall positive
direction, but it can hardly be called steady growth.

On the contrary, the Ethereum chart shows a much more overall bullish outlook, even through
the summer of 2017, when blockchain was at its current peak. It is important to keep in mind
that cryptocurrencies are always going to be social constructs, which means that Ethereum’s
robust network effects make it easier for the network, and its value, to continue to grow
steadily moving forward.


The final feather in ether’s cap is the fact that the Ethereum blockchain is all done on smart
contract technology. Smart contracts are simple programs that can be added to blocks and then
activated once a specific set of circumstances occur. While they are currently primarily being
used for financial purposes, there is already interest in them for everything from monitoring
patients in hospitals to providing notary services. In fact, one of the stated goals of Ethereum is
to simplify the way that traditional contracts work, thus reducing the costs of such services
significantly.

The Ethereum platform can process a total of 25 transactions per second, though additional
scalability is also possible. This process can lead to additional orphaned blocks that are never
processed correctly; however, this isn’t a common occurrence. As of November 2017, a single
ether is worth about $350. By January, it was above $900.

CHAPTER 4. BENEFITS OF THE BLOCKCHAIN TECHNOLOGY

Blockchains create a network that includes all the participants and acts as a verification
mechanism for both transactions and asset ownership. A single copy of the transactions is
stored in a shared, distributed, ledger that is replicated across the network, so each member
has the exact same accurate copy of the transaction activity in near real-time. The unique
benefits that accrue from a Blockchain are:
Trustless
Blockchains run in a “trustless” ecosystem where the participants don’t have to know or trust
each other to take part in transactions.
Provenance
Provenance is the capturing of the complete history of an asset. This history can contain quality
assurance specifications or ownership history or anything else of value for a given asset.
Consensus
Consensus is a way by which transactions are validated by the Blockchain (not by a trusted
third party). There is a whole chapter of the book dedicated to this topic.
Immutability
Blockchains are, for all practical purposes, unalterable once a block has been added to the
main chain. There is no Delete or Update command in the Blockchain sphere as exists with
other databases.
TYPES OF BLOCKCHAINS
There are two main types of Blockchains: Public (open) and private (closed). Let’s first take a
look at the characteristics of a public Blockchain. Most likely, you have heard of Bitcoin and


maybe Ethereum. Both of these and several others in the marketplace today operate using
public Blockchains.
Public blockchains are permission-zero distributed ledgers. That means that ANYONE can join
the network and you don’t have to be asked nor do you need permission to join the network.
Public Blockchains are anonymous so members don’t have to reveal who they are to

participate.
Open blockchains also have anonymous validation which means that anyone can participate in
the Consensus process that validates transactions. This opens the door for potential bad guys
to try and tamper with the data in a Blockchain. This topic will be covered extensively later on.
As you’ve seen in advantages mentioned above, public blockchains are trustless systems. Trust
is not a prerequisite for doing business on the network. You do not have to know, or like, or
trust the other party in a transaction on a public Blockchain. And, these blockchains are where
“Brave New World” apps are being developed. In other words, applications on a public
Blockchain are those that didn’t exist or couldn’t have existed before Blockchains but are now
being developed - like cryptocurrencies.
Private Blockchains
Now let’s contrast public Blockchains with private Blockchains. There are several private
Blockchains that are available on the marketplace. HyperLedger, which has big backing by IBM,
and Ripple which focuses on high transaction throughput in the financial markets are two of
the most well-known private Blockchains.
The first distinctive quality of a private Blockchain is that, it is based on a permissioned private
ledger. Who can participate in the network and who can validate transactions is known and
vetted in advance. Participants must have a level of trust within the network and be invited to
join the network.
Since private Blockchains usually have large corporations as participants, sensitive data will
often be stored “off the chain” while consensus and validation information will be store inside
the blockchain. For example, the fact that two companies agreed on a contract can be validated
inside of the Blockchain, while the actual terms of the contract might be stored “off chain” in a
relational database. Private Blockchains are the choice for “reconstructing existing world
applications” where old applications get a facelift with Blockchain technology to gain the
processing efficiencies that were discussed earlier.


CHAPTER 5. BLOCKCHAIN AS A SERVICE

Both Microsoft and IBM have recently released private Blockchain service technologies (within
their clouds titled Azure and Bluemix, respectively). These private networks pose considerable
issues about their experimental nature, as it is not yet clear how these attempts will be
affected by the scale and operation of the exercise in relation to its infrastructure. Nonetheless,
the potential is already apparent.
Easier availability of the Blockchain experience: Both Microsoft and IBM will make the process
of accessing Blockchain more simplified.
Flexible in scale: Unlike the Bitcoin Blockchain network, these networks will allow more control
over the size of the network you are operating, so you can add or remove nodes with greater
ease.
Accessible across the globe: Access to Blockchain technology will no longer be limited to specific
parts of the world through the leveraging of the two cloud technologies.
Easier interoperation use of Blockchain tech: Currently, it is difficult to use Blockchain with
other programs that are not directly linked to it and developed in conjunction with it. To put it
this way, Blockchain doesn’t just translate into working with Spotify. As Blockchain is further
developed into a service, the possibilities of simplifying and integrating Blockchain tech into
other platforms will become more widely available.
Easier development opportunities: Operating a Blockchain network is difficult to manage right
now, but it will be easier to launch and manage them in the future.
New models for creating programs: Blockchain is still a difficult industry to break into without
advanced technical knowledge. It is too complex right now to have a simple interface. However,
with the increasing effort to develop Blockchain services, there is an effort being paid to
developing programming that will allow for easier ability to design applications for Blockchain.
With Blockchain being investigated as a service, not just a platform, the advancement of
technologies is open to significantly more opportunity. It paves way for future developments in
the works. Understanding how it will be implemented as a service reveals the key to
understand the future applications that are being considered now, even though the technology
is not yet far enough advanced to make these concepts into reality just yet.

THE MARKETS WHERE BLOCKCHAIN COULD PROVE USEFUL

FINANCE INDUSTRY
As we know, the financial industry has played the largest role so far in investing in Blockchain
technology. Players from the finance sector have already put almost $1 billion toward
companies that are working to further develop Blockchain technology. It is projected that $20
billion could be saved yearly with the successful implementation of the technology in the global
banking arena.
In fact, many Blockchain startup companies are founded bankers. NASDAQ, Visa, and JPMorgan
are just a few of the big names involved in providing assets to further develop the technology.
What are they researching? With the funds they’ve invested, these companies will be able to
explore how Blockchain technology can be commercialized to handle the trade of stocks,
bonds, loans, derivatives and other assets. At this time, those transactions are recorded and
stored by central banks and other institutions. This process is costly and takes a lot of time.
Blockchain technology can make these transactions happen quicker and with more security.
Both within companies and between them, programs for transactions are being piloted so that
banks can securely make faster, safer exchanges. These kinds of transactions differ from the
ones practiced through the Bitcoin Blockchain because they are private rather than public,
which means there may be an authority overseeing the transactions. Already this year,
successful tests have been conducted and Nasdaq successfully carried out a securities
transaction using its own Blockchain exchange.
Tracking Down Black Market Goods
Blockchain technology can be utilized to form a registry that would allow users to trace the
ownership of an item to determine whether they are of illegal or false provenance. Insurance
companies are finding themselves drawn into cybersecurity issues, and one is already working
with a Blockchain startup to begin tracking diamonds as they leave mines to trace their
movements.
Here’s how it works: The information of defining attributes of the goods is recorded and
ascribed to a serial number that has been assigned to the item. The serial number can, in some
cases, be inscribed directly on the item. That information then enters the Blockchain database;

it cannot be stolen or corrupted because it is replicated on every node and encrypted. This kind
of system would allow the provenance of each item to be certified by sellers and give buyers a


way to find out about the items they are seeking to purchase. This also gives the police and
other authorities a resource to use when seeking items that have been stolen.
This would be an example of a private network, open only to those who have proven
themselves reputable in the industry. Blockchain technology will be expanded in the future to
securely track other valuable markets, such as art or expensive technology.
Healthcare Industry
The principles of privacy behind Blockchain technology are perfect for application to industries
where the data being transmitted must be protected, such as the transaction of medical
records. The healthcare system has long lagged and been held back by inefficient practices that
must be imposed to keep patient identities safe. That’s why health care industries are showing
interest in the potential of Blockchain. For pharmaceutical companies, the draw lies in the
potential to track and tag drugs to regulate the trade of goods to prevent illegal trade and
counterfeiting.
Blockchain technologies allow new reimagining of what it means to have control of privacy.
There are projects underway that are investigating the potential for people to have the power
to store their own personal data on a secure and private server. This would empower them to
have control over who accesses it. The following scenario would then be possible: when a call
for research is made, individuals would have the power to sell or allow access to their data for
researchers to use. Data is then utilized as an asset and something you own and can be
compensated for rather than just giving it away for free.
Insurance Companies
The possibility of Blockchain technology applied to insurance can build up new businesses but
also has the potential to destroy other forms. New types of policies could be invented; for
example, with the 24-availability of Blockchain technology, you could get insurance on the
weekends, even after company hours. With real-time updates to the database, you could have
the option of insurance over a mere period of hours. This would mean making longer-term

forms of accident insurance less popular, which could cut into profits.
Media Ventures
The music industry is suffering at the hands of streaming services and illegal downloading.
What if there were a way to make music available online secure, yet convenient to access on
the web? Blockchain has the potential to change the way the music business deals with royalty
costs. Everyone knows the music business is suffering from a crisis. That’s why artist Imogen
Heap made music history by releasing her single on the Blockchain music sharing platform Ujo,
based on the peer to peer open-source entity Ethereum.
If major firms like Apple Music, Pandora, or Spotify were to release music using a Blockchain,
they would be able to capitalize on collection of royalties in a way no platform has ever been
able to guarantee its artist’s before. Instead of having the music encoded on a file as with
MP3s, a new type of file would be used. MP3s can carry meta-data, but the amount is not


significant and it can be easily removed and passed on further without the ability to trace it.
This new type of file would be one that plays music as well as wears the Blockchain data on
intellectual property rights and requirements for payment.
Real Estate Market

Blockchain can revolutionize the functioning of the real estate market by making contracts,
deeds and titles more secure and trackable than ever before. This is particularly useful for
instances where this information is at a risk for loss. Imagine the dangers posed in the face of
the loss of a paper archive, for example, in a war-torn environment. With an updated record
distributed across multiple platforms, the risk of this loss is avoided and can be better
maintained.
Manufacturing Industries
Blockchain can play a huge hand in preserving and protecting the intellectual property of
businesses, both small and large. 3D Printing, as mentioned above, can be risky in terms of
transferring data. This applies to other goods as well. Particularly for smaller companies, the
task of protecting the IP of their products is high challenging when they are also trying to

operate on a platform to sell their wares. Using Blockchain, people who hold rights on their
creations have a platform to store metadata on actual substances, thereby ensuring the safety
of their wares.
Personal Data Management
Blockchain has the potential to put people in control of their own personal data. Consider
platforms such as Facebook and Instagram. Every time you interact with information through
these platforms, you are creating data that is then controlled by those companies and sold off
to other parties to design marketing targeting your tastes. This is an example of companies
having ownership off your own data, data that you have created.
With a decentralized platform like Blockchain, that information could be stored by you
personally and selectively released at your discretion rather than available in the ownership of
the companies. This ties into the concept of Internet of Things, because with the
implementation of identity-protecting Blockchain technology, you can have control over who
has access to what aspects of your identity. Combined with smart contracts, you will have
opportunities to authorize and more effectively manage the collection of data on your identity.
A new era of privacy is ushered in with the development of Blockchain.