Blockchain Technology Is An Evolutionary Form Of Technology ✓ Solved

Blockchain Technology Is An Evolutionary Form Of Technology That

Blockchain technology is an evolutionary form of technology that can be utilized in several industries for processing and storing information in an intuitive manner. Blockchain technology is most often associated with Bitcoin; however, many different applications exist that use this technology. Some cryptocurrencies, which are virtual or digital forms of money, use blockchain technology to keep a running record of transactions added to an ever-changing ledger. The ledger uses cryptography to protect the record, and each ledger entry is a block which is chained to the other entries, thus the name blockchain (Makridakis & Christodoulou, 2019).

Bitcoin is the most commonly known and utilized cryptocurrency; however, there are many other cryptocurrencies that utilize blockchain technology. Two other cryptocurrencies that exist are Ethereum and Cardano. Ethereum is a cryptocurrency and software platform that utilizes blockchain technology, allowing developers to create and implement decentralized applications (Makridakis & Christodoulou, 2019). This open-source platform accounts for approximately 80% of all blockchain-type projects (Tarzey, 2019) and was the first to fully enable smart contracts, facilitating the seamless creation of initial coin offerings (Tarzey, 2019).

This application has numerous uses including, but not limited to, electronic voting, compliance, and trading (Makridakis & Christodoulou, 2019). Cardano is another cryptocurrency that utilizes blockchain technology. Though Cardano and Ethereum share similarities, they are also vastly different. There are several unique values that blockchain technology, including Ethereum and Cardano, provides, such as trustworthiness, transparency, disintermediation, no system downtime, no third-party interference, and continuous improvements to the technology (Makridakis & Christodoulou, 2019).

Both cryptocurrencies allow for the ease of use of smart contracts, which enforce terms of agreements without needing individuals to sign legal documents (Makridakis & Christodoulou, 2019). The most significant difference between Ethereum and Cardano is that Cardano employs the algorithm “Ouroboros,” which consumes much less energy than other systems that create smart contracts (Makridakis & Christodoulou, 2019). Additionally, Cardano offers a traditional debit card funded from the user’s wallet for purchases (Makridakis & Christodoulou, 2019).

Both cryptocurrencies provide substantial benefits that can be utilized across various industries. Although I have not personally engaged with cryptocurrencies including Bitcoin, I am aware of its popularity. My experience working in higher education has made me uncertain of blockchain technology's presence in our systems. This assignment has expanded my knowledge of cryptocurrency options.

Cryptocurrencies represent digital money that processes transactions through tokens and coins. Several types of cryptocurrencies exist, such as Ethereum, Ripple, Litecoin, Libra, Monero, and EOS. Litecoin, introduced in 2011, is often referred to as the silver to Bitcoin's gold. Developed by Charlie Lee, a Google engineer, Litecoin is an open-source global payment network that operates independently of central authorities (Stoyanovich & Tanz, 2019).

Similar to Bitcoin, Litecoin’s blockchain boasts an efficient transaction rate, enabling quick confirmations. Moreover, its developers are enhancing its acceptance; currently, Litecoin's market capitalization is approximately 3 billion dollars (Stoyanovich & Tanz, 2019). Ethereum, as a decentralized software platform, facilitates the creation of smart contracts and supports the development and operation of decentralized applications without downtime, issues, or third-party interference.

The Ether acts as the vehicle moving through the Ethereum platform, enabling the development and operation of Ethereum applications alongside digital currency investments. Both Litecoin and Ethereum are traded on platforms like Coinbase, which functions similarly to stock exchanges, allowing real-time trading price purchases (Waldo, 2019). Compared to Bitcoin, Litecoin and Ethereum process transactions significantly faster, despite Bitcoin’s improvements over traditional banking transactions.

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Blockchain technology has emerged as a revolutionary force in today's digital age, fundamentally changing how information is processed and stored across various sectors. This technology is best known for its association with cryptocurrencies such as Bitcoin but has a myriad of applications beyond digital currencies. Blockchain enables the creation of a secure, decentralized ledger that records transactions across multiple computers, ensuring that the recorded information cannot be altered retroactively without altering all subsequent blocks and the consensus of the network.

The essence of blockchain technology lies in its ability to provide transparency and trust. Each transaction recorded on the blockchain is visible to all network participants, fostering an environment free of fraud and providing a reliable historical record. The cryptographic principles that underpin blockchain technology serve to immunize it from unauthorized tampering. Each block in the chain contains a cryptographic hash of the previous block, linking the entire chain together and creating a robust framework for data integrity (Makridakis & Christodoulou, 2019).

Cryptocurrencies, such as Bitcoin, Ethereum, and Cardano, symbolize various implementations of this groundbreaking technology. Bitcoin, introduced in 2009, is the first cryptocurrency and remains the most widely recognized and used to date. Its decentralized nature allows users to engage in peer-to-peer transactions without the need for an intermediary, such as a bank. This disintermediation is a significant advantage, as it reduces transaction costs and processing times, as well as minimizes overhead associated with traditional banking systems.

Ethereum expanded upon Bitcoin's premise by introducing smart contracts, self-executing contracts with the terms of the agreement directly written into code. Smart contracts facilitate automated transactions when predetermined conditions are met, increasing efficiency and reducing the potential for disputes. This capability has not only transformed the financial sector but has also enabled innovative applications across industries—ranging from supply chain management to healthcare, where traceability and efficiency are paramount (Tarzey, 2019).

Cardano represents another unique application of blockchain technology. Notable for its energy-efficient consensus algorithm known as Ouroboros, Cardano sets itself apart by emphasizing sustainability in the blockchain space. This algorithm enables Cardano to process transactions with much-reduced energy consumption compared to its counterparts, setting a new standard for blockchain usability. Furthermore, Cardano's integration of traditional financial mechanisms, such as a debit card linked to users' wallets, exemplifies the practical application of cryptocurrency in everyday transactions (Makridakis & Christodoulou, 2019).

The benefits of blockchain technology extend beyond cryptocurrencies. Its applications are being explored in a variety of sectors, such as healthcare, where patient records can be securely stored and shared between authorized parties while maintaining patient privacy. In supply chains, blockchain can track the origin of goods and ensure quality control, while in voting systems, it enhances security and transparency in democratic processes (Waldo, 2019). Each of these applications leverages blockchain's unique properties to enhance efficiency and trust in systems that traditionally struggled with verification and transparency.

However, blockchain technology is not without its challenges. Scalability remains a significant hurdle as the number of transactions increases. Current blockchain networks can experience delays and higher fees when the demand surges. Furthermore, regulatory and legal complexities associated with digital currencies continue to evolve. Governments around the world are grappling with how to appropriately regulate these assets while fostering innovation (Stoyanovich & Tanz, 2019).

Despite its challenges, blockchain technology’s potential is vast. The continuous advancements in this field suggest a future where blockchain could regularly disrupt traditional industries, driving innovation and fostering economic growth. Educational institutions are beginning to incorporate blockchain into their curriculums to equip future leaders with an understanding of this dynamic technology.

In conclusion, the evolution of blockchain technology signifies a paradigm shift in data management and transactional processes. With its roots in digital currencies like Bitcoin, blockchain has the potential to revolutionize various sectors by fostering transparency, security, and efficiency. As we continue to explore its applications and overcome its challenges, it’s evident that blockchain is more than just a trend; it represents a foundational change in how value is exchanged in our increasingly digital world.

References

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