Statements that blockchain is exclusively about ICOs, cryptocurrencies, the financial industry, banking and the creation of public open networks, begin to lose their significance. For example, the number of pilot projects conducted by IBM with partners from a variety of industries already reached 400 in 2016.
“If 2016 was a year of experimental projects in the field of blockchain technologies for companies, then 2017 became a year of scaling and the transition from pilot projects to active networks. I think that in 2018 this trend will continue to develop, and quite a lot of projects will move into a productive phase. I would also note the trend of increasing integration of blockchain projects with each other and productive systems. A blockchain solution, in fact, cannot be a “separate box”; it must be integrated with the productive systems of banks or other organizations.”Vladimir Alekseev, system architect at IBM in Russia and the CIS,
speaker of the Blockchain Weekend course in Binary District
In essence, the implementation of blockchain technology is justified if three main conditions are met:
- Having an identifiable business network with participants, assets and transactions.
- There is a business problem that cannot be solved by introducing other technologies.
- There is a need to increase trust, consistency, immutability and completeness of data.
Proof of quality
IBM, Walmart, Chinese online store JD and Tsinghua University began working together in 2017 on a food safety project based on the open blockchain platform HyperLedger Fabric. The impetus for the development of the project was the rather dramatic situation associated with the number of diseases caused by food poisoning around the world. The technology makes it possible to combine all documentation along the supply chain of food products, in particular pork, and eliminate the possibility of counterfeit goods entering the store.“This solution has made it possible to significantly reduce the time it takes to search for a specific batch of goods for the necessary inspection or possible withdrawal from circulation. In the fall of 2017, the creation of a consortium was announced, which would include the largest retail suppliers from around the world, including Unilever, Kroger, and Nestle. The goal of this combination is to expand the Walmart and IBM pilot to scale the mission of food safety and supply transparency throughout the U.S. retail industry.”
Vladimir Alekseev, IBM
According to IBM experts, the blockchain solution for Walmart will help reduce the number of deaths from consumption of low-quality food products worldwide by 400,000.
Proof of authenticity
The startup Everledger uses blockchain technology to track and store data on the purity, quality and origin of diamonds. These stones often have a dark past, and traditional paper certificates can be counterfeited. Registration of a precious stone in a decentralized blockchain database reliably records its key characteristics, history of movements and resales, which eliminates the possibility of fraud, substitution or theft.Proof of Life
Very soon, decoding the human genome will become a completely common procedure and accessible to everyone. This will be able to improve the quality of diagnosis of diseases, prevent the development of many of them, and contribute to the creation of new drugs. The bold project Nebula Genomics seeks, firstly, to reduce the cost of deciphering a personal genome, and secondly, to optimize the collection and storage personal information. To achieve these goals, decentralization mechanisms, cryptography and blockchain are used.An educational program on the study and application of blockchain technology in the banking structure has been launched on the basis of the Academy of Technologies and the Sberbank Corporate University. The purpose of the course is to familiarize bank managers with new opportunities and teach top managers to make the most effective use of new technology in bank projects. The main objective of the program is to interest and attract more managers in the use of blockchain.
Every year humanity discovers more and more new information technologies The general education course includes:
- possibilities of application in the financial sector;
- overview of the main blockchain platforms;
- legal basis for the use of technology;
- analysis of cryptoeconomics, which is the founder of the methodology;
- studying Sberbank projects where blockchain is applicable.
The training program is designed for internal use, but the banking institution plans to further promote the training course.
Sberbank's interest in new technology is obvious: it is increasingly taking over the world of business and becoming indispensable in some of its areas. Sberbank is one of the first to conduct a pilot payment transaction using the IBM Blockchain platform this year. And he sees huge potential in using blockchain not only in the financial sector, but also in his projects.
Blockchain: the essence of technology
How blockchain works using electronic currencies as an example The appearance of the very name of the technology is associated with the Bitcoin system and the method of storing information in it. All information on transactions was grouped into separate blocks, and the subsequent one contained a “digital fingerprint” of the previous one. This is how a chain of blocks was formed. All transaction blocks are interconnected in such a way that any change entails a change in others and becomes immediately noticeable. It's like a notebook with numbered pages, where you can check the sequence of each entry and its coherence with the previous ones. The very principle of the methodology is built on this - the transaction history is transparent and available for viewing by each participant, but cannot be changed without authorization, since all participants can immediately notice it.
Blockchain allows you to build a decentralized financial system, the work of which can be verified by everyone. Security is ensured by a decentralized server, resulting in a database that is managed in offline mode. All participants have access to it with very high level privacy. Blockchain is also called distributed ledger technology.
This technology is ideal for those who work with the same database, but practically do not trust each other. This scheme is also applicable in the financial sector during mutual settlements between financial organizations, when concluding transactions and checking counterparties. No hacker attack, which all banking structures are so afraid of, is possible when using blockchain.
But such an innovation could also “eliminate” banks as a link in making payments. In all financial transactions, the bank is an intermediary: it guarantees that the money from the payer will reach the recipient. The banking institution issues confirmation of payment and receives a commission for this. But at the same time, banks see quite a lot of advantages in blockchain.
Hello, dear readers of the online magazine “RichPro.ru”! This article will focus on blockchain technology.: what is it and how does it work, what ways to make money on the blockchain exist.
After studying this publication from beginning to end, you will learn:
- What is Blockchain and what are the advantages of the new technology;
- Where is blockchain used and how does this technology work;
- What platforms and projects exist based on Blockchain.
The article also contains instructions for beginners about how to get blockchain training.
Recently, there has been widespread talk about Blockchain technology. However, not even all people in the financial sector understand what it is. What can we say about ordinary people? The only thing many people know about blockchain– the presence of a relationship with bitcoins.
We could not allow such a gap in your knowledge. Therefore, we tried to outline most of the nuances in the presented publication. Don't waste time, start reading right now!
About why blockchain technology is needed and what it is in simple words how the blockchain system works and what advantages it has - read this article
1. What is blockchain in simple words - an overview of the concept + advantages of Blockchain technology 📋
When studying any topic, you should first understand the terminology. Word "blockchain" comes from an English phrase, the translation of which sounds like "block chain". This phrase conveys the basic meaning of the concept quite well.
Blockchain(from English blockchain) — this is technology, which involves collecting information in a sequential chain of blocks protected by cryptographic encryption. In this case, data chains are not stored on a separate server, but are present simultaneously on all devices connected to the network.
Blockchain is a self-sufficient system that does not require third parties to operate. Moreover, the system under consideration is extremely open. In the process of creating blockchain, the main goal of the developers was to avoid intermediaries.
Experts say that the widespread use of blockchain technology will lead to significant changes in the information world. This is explained quite simply: decentralized data storage allows you to protect it from unauthorized changes, For example hacking, tampering or any control.
Another important plus (+) technology is that intermediaries (financial organizations, payment systems) are no longer needed for any data transfer operations. All information is transmitted using the protocol peer-2-peer, that is, directly from one user to another.
All participants in the system have the opportunity to obtain information about the history of operations, as well as about other participants. In this case, all system data is stored simultaneously in all network devices.
Only its owner has access to the funds on the wallet in the blockchain system. Money is not placed with intermediaries, which are usually banks. Thanks to this, transactions are not under anyone's control.
We wrote in more detail about what it is and how to open it in a separate publication.
Blockchain is able to secure any transactions that involve the risk of one of the parties to the transaction refusing to fulfill its obligations. That is why the list of areas in which the technology in question is used is constantly growing.
Blockchain technology can be used:
- when conducting financial transactions with money;
- when concluding contracts and agreements;
- during various commercial transactions;
- when purchasing goods and services;
- when exchanging confidential information;
- for issuing insurance policies;
- to protect property rights, as well as transfer them to the new owner;
- personal data management;
- to ensure the security of intellectual property;
- assistance in creating document archives.
Complex mathematical algorithms are used to connect individual blocks of information with each other. Each subsequent data link is attached strictly to the previous one. He is assigned unique signature, and also adds timestamp.
The addition of a block must be confirmed by all network participants. This procedure leads to the registry on all devices is automatically updated. It turns out that the appearance of each link leads to the appearance of data about it in all information bases.
Important! You can only hack a network if you gain access to at least half of the devices combined in it. Naturally, this is technically almost impossible to accomplish.
The attitude towards the latest blockchain technology today is absolutely ambiguous. Government bodies fear that the lack of control over financial transactions will lead to the flourishing of illegal trade, For example weapons, drugs and people.
Financial companies on the one hand, they are afraid, because the lack of need to use the services of intermediaries can leave them without work, at the same time, they are interested in blockchain from the point of view of application in their activities.
Over 40 large banking organizations have created consortium , which was called R3. Its goal is a large-scale study of blockchain. The consortium participants are confident that the new technology cannot be perceived as an unconditional evil for banking organizations.
Against, the use of blockchain makes it possible to significantly decrease↓ expenses. Banks propose to transfer interbank payments to new technology and abandon the one used today SWIFT.
In Russia Blockchain technology, as well as cryptocurrencies, are treated differently. The authorities constantly change their minds - sometimes they call for studying new technologies, sometimes they intend to ban them. We talked about this in one of our issues.
The Ministry of Finance proposes to introduce criminal liability for those who use cryptocurrencies. At the same time, the head of Sberbank and the head Central Bank publicly express support modern technologies.
In fact, it has long been proven that there is no point in resisting progress and modern technology . Blockchain has already appeared and is working. It is important to learn to live with this and use technology for personal and universal benefit.
The main advantages of blockchain technology: no central server; fast and accurate transactions; transparency of transactions; availability of a complete copy of the database; data encryption
Benefits of blockchain technology
Blockchain technology has big amount advantages, which every day attract the attention of more and more people.
Already today there is an opinion that new data storage technology will lead to the emergence of a new Internet - internet of values. This is associated with the significant advantages of blockchain, which will be described below.
Advantage 1. No central server
Blockchain represents a qualitative new way storage important information. Data is stored in the Blockchain system decentralized, there is no single repository. This makes it impossible to control information.
Changing even one block of information will require incredibly enormous power. Information is stored on all devices connected to the network simultaneously. Therefore, they remain practically invulnerable.
Before the advent of new technology absolutely all information was stored on servers . Including information about monetary transactions, purchase and sale transactions, and any other actions. Meanwhile, any server can be hacked. As a result, fraudsters can not only gain access to confidential information, but also change it.
Advantage 2. High speed and accuracy of operations
The lack of centralization, as well as built-in protection against unauthorized access, help to carry out transactions with high speed and accuracy, eliminating the services of intermediaries ( banking organizations, payment systems, notaries, exchangers). The authenticity of the transactions carried out is verified and confirmed by the network participants themselves.
It is on similar principles that they are based smart or smart contracts . They are fulfilled only if certain conditions are met. It is impossible to violate such an agreement or change its terms retroactively.
In contrast, traditional contracts establish the obligations of the parties to the transaction, the conditions of fulfillment, as well as the consequences of their non-compliance. However, a traditional contract always carries the risk that someone will violate the terms.
Advantage 3. Transparency of operations
The Blockchain network is in a state continuous monitoring . This means that she periodically checks herself.
For this purpose, a digital system audit is used. At the same time, absolutely all information contained within the system remains transparent, data on all transactions is available to all participants.
Advantage 4. A complete copy of the information base is stored with each participant in the system
Each user of the system has a copy of the information base on his or her computer, which is updated regularly. Therefore, network participants do not have to coordinate data with each other. As soon as a new transaction is added to the blockchain, it is confirmed by each user.
In this case, it is impossible to change not only a single block, but also their sequence. Access to a specific information link is carried out using a key that is available only to the person to whom it belongs.
Advantage 5. Encryption of information
The information from which the link is formed is automatically encrypted. Full protection stored information provides cryptography .
Thanks to hashing in Blockchain, the immutability of the entire chain of operations is guaranteed. At the same time, the presence digital signatures , and personal keys 2 -x types protect data within the link from unauthorized access.
The main ways of using blockchain technologies (storing digital certificates, organizing the DNS system, transactions with various goods, identification and confirmation of access rights, network management, operations with property rights, confirmation of copyrights, information management, organization of electronic voting)
2. Where is blockchain used - 9 options for using the technology 📑
Blockchain is increasingly being introduced into digital as well as real-life areas of activity. Theoretically, the technology can be used in any area where there is a risk of being deceived or receiving incorrect data due to errors in the transmission of information. It is also possible to use technology in the absence of trust between partners.
Blocks allow you to secure operations by creating smart transactions . Broadcast password carried out only if pre-agreed conditions are met. If they do not occur, each of the parties to the transaction remains with their own.
Below are the options in which the use of blockchain is most effective today.
Option 1: To store digital certificates
Blockchain technology provides reliable data protection from illegal studying, distribution, and changes. Due to the fact that the certificates are stored on the network, it is impossible to access them unauthorized access.
It will also not be possible to illegally intercept access keys , belonging to the system participants.
Option 2. Organizing the DNS system
Blockchain helps make the distribution of names within networks completely secure. Thanks to this, any DDoS attacks(hacker) cease to threaten absolutely all network participants.
Option 3. Transactions with various goods
Risk always accompanies operations with valuable metals, raw materials, and large quantities of various goods. If you use blockchain technology and cryptocurrencies when conducting such transactions, the danger can be reduced to a minimum.
Option 4. Identification and confirmation of access rights
Some serious corporations are already using Blockchain technology to identify employees as well as clients.
In addition, the system is used to provide access to inside information to those who have the right to it. This method of verifying rights turned out to be more reliable And cheaper .
Option 5: Network Management
When administering various networks, Blockchain acts storage a list of users, as well as access passwords, which turns out to be invulnerable.
The use of technology in this case helps to protect servers and networks from hacker attacks. It also solves another important problem– frees you from the need for administration.
Option 6. Conducting transactions with property rights
You can confirm and transfer ownership rights almost instantly , using Blockchain technologies. It is enough for the owner to enter data on changes in rights into his link so that they immediately become available in all blocks of the system.
Option 7. Confirmation of the author's rights
Subsequently, if there is a desire to transfer intellectual rights to third parties, you can smart deal. This will allow you to completely protect yourself.
Option 8: Information Management
Not only financial operations, but any information requires its owner to comply with all confidentiality rules. When using Blockchain technology, data is decentralized.
It is worth considering that when storing information simultaneously on a huge number of computers illegal modification, counterfeiting or deletion becomes virtually impossible.
This option for protecting and storing data turns out to be significantly cheaper than traditional ones. You won’t have to spend money not only on expensive equipment, but also on protecting your data from unauthorized access.
Option 9. Organization of electronic voting
Since it is impossible to change the information in the links, it is not possible to rig the results after the end of voting.
To make it easier to compare blockchain use cases, basic information about them is presented in the table.
Table of options for using blockchain technology, their practical application:
| № | Application option | What gives | Current state |
| 1 | Storing digital certificates | Allows you to protect certificates from unauthorized actions | Actively used |
| 2 | Organization of the DNS system | Protecting domain names | Several examples have been developed and are in operation. |
| 3 | Transactions with various goods | Protecting transactions using smart contracts | Some countries are actively using smart contracts |
| 4 | Identification and confirmation of access rights | Allows you to ensure secure access to information, as well as its confidentiality | Used by some large foreign companies |
| 5 | Network Management | Security | Used by multiple systems |
| 6 | Conducting transactions with property rights | Possibility of confirmation and transfer of ownership rights | Several platforms have been developed and are in operation |
| 7 | Confirmation of author's rights | Storage of intellectual property, the possibility of secure transfer of rights to it | A small number of platforms are available |
| 8 | Information Management | Provided safe storage information | Used by foreign organizations |
| 9 | Organization of electronic voting | It is impossible to falsify voting results | Used in practice by some network projects |
3. How blockchain technology works - 5 stages of system operation 📝
It is not always possible to easily understand how something that cannot be seen works. But we will try to help figure it out.
How blockchain technology works: 1) creating a transaction and transmitting it to the network; 2) transfer of the operation to the P2P network; 3) Validation; 4) Transaction confirmation; 5) Adding a new block to the chain
Below is algorithm of blockchain technology using the example of operations with cryptocurrencies . In fact, this digital money is only a block of information, so the principle of action can be applied to any operations based on blockchain technologies.
Stage No. 1. Transferring a decision on an operation (transaction) to the network
6. Platforms on Blockchain – TOP 7 services for creating business products 💻
When creating business applications based on blockchain principles, it is impossible to do without specialized platforms. Below is an overview of the most reliable and popular of them.
Platform 1. Emc SSH
The platform in question is one of the SSH technology options. Its main task is Internet network administration .
In this platform, blocks act as ideal storage that allows you to secure access keys, and a list of users.
In other words Emc SSH provides secure access to information, ATM and digital terminal networks, and servers. The presented platform allows for global control of the network, regardless of how far its individual components are from each other.
Platform 2. Emc TTS
Emc TTS – a platform that offers technology for fixing various documents . It is especially useful in resolving legal issues and in cases involving copyrights.
The platform allows accurate to the second record the time when the document was published. When resolving legal disputes, such precision can be very useful.
Platform 3. Emc SSL
This platform is an extension of the custom SSL protocol.
Blockchain developed on this platform is way to store digital fingerprints , which are owned by individual users and companies.
Similar technologies For example, help protect against hacking and leakage of information about banking clients.
Platform 4. Emc InfoCard
The Emc InfoCard platform is based on electronic business card system . The use of blockchain in this area makes it possible to achieve automatic changes in data at the card registration locations, if the information on the electronic business card itself has been changed.
Ultimately, an electronic business card becomes an analogue of a general registration on all digital platforms that are interconnected.
Platform 5. Emc DNS
The purpose of creating the Emc DNS platform was secure distribution of domain names within networks , as well as ensuring their protection from hackers. Blockchain technologies help make domain names practically invulnerable for intruders.
Platform 6. Emc Atom
The Emc Atom platform allows you to produce secure transactions between two parties, having refused from the participation of intermediaries.
In this case, financial organizations, notaries and other third parties become unnecessary. As a result, costs are significantly reduced ↓.
Platform 7. Emc DPO
The scope of application of the Emc DPO platform is proof of ownership of various property . In this case, the property can be like physical(vehicles, real estate, land), and intellectual m.
This technology makes it possible to significantly simplify the transfer of ownership rights. The owner who has legal access to information must add to the network new entry. After this, there is an immediate change in ownership information throughout the system.
Using the platforms described above allows you to create effective applications based on blockchain technologies.
Blockchain for dummies - step-by-step instruction how to get training
7. How to complete blockchain training - step-by-step guide for dummies 📚
All the previous information allows you to do very important conclusion: Blockchain is the future . This is why training in this technology is a necessity.
Below is step by step guide for newbies , which will help you understand the sequence of training using the example of regular Internet courses.
Step #1. Choosing a training center
First of all, you should choose professional training center. However, you should not believe tempting advertising. With growing demand for training, blockchain is gaining momentum scammers . Behind bright pictures and loud slogans can hide anything.
When choosing training courses, special attention should be paid to the following characteristics:
- legal status of the company;
- does the training center have a license and certificates;
- level of knowledge and qualifications of teachers.
You should also carefully study
Sberbank developed and launched educational program aimed at studying the possibility of applying blockchain technology in the structure of the work of a banking organization. The course was created to familiarize bank managers with new technologies, as well as to train leading managers to apply the acquired knowledge in their activities. The objective of the training course was to attract management staff to use blockchain technology.
Application of technology in banking
The training program includes:
- consideration possible ways apply technology to the financial sector;
- overview of the main blockchain factories and platforms;
- an overview of the basics of cryptoeconomics, which laid the foundation for this technology;
- legal and regulatory criteria for the use of blockchain;
- analysis of Sberbank programs where blockchain can be used.
The course is intended for internal use; in the future it is planned to promote the training program in other areas.
The popularity of blockchain technology is growing every day, this determines Sberbank’s interest in launching a training methodology. Sberbank has already carried out the first payment transactions using the IBM Blockchain platform. Sberbank sees the future of technology not only in its application in finance, but also in design developments.
What is the essence of Blockchain technology?
The founder of the technology is the Bitcoin system and methods of storing data in it. Information on completed transactions is grouped into a block chain. Each block contains information about the previous one. If you change the data of one block, this will entail changes in subsequent ones. It is impossible to delete or edit information in a block unnoticed; this will inevitably affect the entire chain. Thus, the technology ensures transparency of transactions and also implies access to information to all participants in the payment process. In this case, neither party can change the information without the consent of other participants.
The blockchain methodology is aimed at building a non-centralized system of relationships, where each participant in the process can analyze and control events. There is a special server on the basis of which a database with autonomous control is developed. The database is available to all participants in the transaction, while maintaining the principle of confidentiality.
The technique helps greatly in cases where the parties have not built a trusting relationship, but you have to work with a single base. The technology is used in settlements between financial institutions, concluding contractual relations and checking counterparties. Any hacker attacks when using technology are not scary.
What does blockchain mean for the banking industry?
The introduction of blockchain technology may negatively affect the work of the bank, excluding it as an intermediary in the transfer Money. After all, the bank inherently acts as a link between the sender of the transfer and its recipient. It guarantees the successful completion of the transaction and charges a commission for this.
Sberbank saw a number of advantages in the blockchain methodology:
- high-quality data synchronization;
- transparent relations between counterparties;
- protection from fraudulent activities and changes in information;
- conducting an asset accounting system;
- safe and fast execution transactions reduces the costs of participants in the process.
Despite the strengths of the technology, banking organizations today do not consider it an overwhelming competitor to the classical banking scheme. At the same time, leading Russian banks are beginning to use blockchain in new projects.
So, blockchain technology implies an electronic document management system, the main principles of which will be openness and accessibility to all participants, as well as the absence of centralized management of the information base. The technique will reduce human resources and also ensure a transition to a new method of verifying the authenticity of documentation. Blockchain will help speed up the processes of data transfer and mutual settlements between legal entities. Conducting transactions for large amounts now does not have to be delayed for a long time. It is noted that when money transfers, the transaction is recorded to the recipient instantly, unlike the classical banking system.
Sberbank, as a leading bank in Russia, takes part in the development and implementation of new technologies in the work of a banking institution. The practical application of the blockchain methodology will make it possible to create a single database with simultaneous access to it by all participants in the relationship. The launch of the methodology will be reflected in the work of a banking organization in the form of transparency of concluded transactions and the impossibility of carrying out fraudulent transactions.
Blockchain technology has flaws that can be exploited by attackers. We have previously described the risks associated with double spending attacks and the 51% attack. Now let’s try to figure out whether blockchain can really be dangerous, and consider this problem from both skeptics and innovators.
Risks of introducing blockchain into the banking sector
Blockchain technology itself is already being actively implemented in banking systems. A good example The application of blockchain technology is the Ripple platform. But the attitude of banks towards cryptocurrencies remains negative or neutral.
On this moment The bank considers itself a regulator in relations between users of financial services and cryptocurrencies. Bank executives say their main goal is to help traditional financial institutions implement blockchain. At the same time, the Central Bank of Russia believes that it is premature to allow cryptocurrencies for trading. The fact is that at the moment Russian banks cannot equate cryptocurrencies even with foreign currencies due to their similarity to financial pyramids.
The main similarities between cryptocurrencies and financial pyramids:
The value of most cryptocurrencies does not correspond to the real price of the asset.
Cryptocurrencies are used by speculators for profit.
Monetary assets may disappear without compensation. Such cases have already occurred more than once in the world of cryptocurrencies due to hacker attacks.
Proponents of blockchain can cite the following counterfactuals:
The main digital currency Bitcoin has real value (https://site/blogs/cryptocurrency/pochemu-bitkojn-imeet-stoimost) and, unlike the dollar, will not depreciate due to inflation.
Speculators have always existed and will exist in all areas of activity.
In most cases, hackers do not attack the blockchain network itself, but exchanges and pools. The blockchain itself has been successfully attacked a few times.
The main conclusion that regulators (banks) have come to at the moment is to implement blockchain technology without legalizing cryptocurrencies. It is investments in cryptocurrencies that carry the risk of losing money. Perhaps something will change in Russia on December 28th. An important event should also take place on this day - the SegWit2x hard fork in the Bitcoin network.
Anonymity as a disadvantage of blockchain
One of the features of using blockchain as payment system is the anonymity of users. Clients can make payments for various services and goods without worrying about being identified. Such conditions are perfect for attackers, for whom blockchain is a convenient tool in carrying out their illegal acts. The first criminal case related to blockchain was opened in connection with the trade in illegal drugs on the dark Internet.
Terrorists also enjoy anonymity. An important tool in the fight against terrorists is blocking money transfer channels. This procedure becomes significantly more complicated if attackers are able to transfer huge amounts of money in one payment, without identifying themselves at all. Thus, blockchain technology can facilitate the financing of terrorism and is therefore dangerous.
If we consider this issue from the side of blockchain fans, the following counterarguments can be given:
Blockchain makes it possible to identify all active wallets of a criminal group if one of them is identified.
Blockchain can become a universal database that can be used by government security agencies.
Corruption is an integral part of terrorism. Blockchain technology, combined with smart contracts, can deprive corrupt officials of the ability to manipulate power.
Blockchain can truly become a powerful weapon in the hands of criminals. But the truth is that any innovation can be such a weapon. The global Internet, atomic weapons, electricity, the wheel - all this was once an innovation, but now can be used by attackers.
Blockchain could eliminate jobs
Blockchain technology is dangerous because it can deprive millions of people of their jobs, since its implementation will eliminate the need for intermediaries in various areas:
When preparing various types of documents.
Everyone knows how ineffective government agencies can be. Thousands of officials perform similar work and duplicate documents several times, passing them on to each other for additional checks. Paperwork still exists in many government activities. Blockchain does not allow documents to be duplicated or forged. The information entered into the database will be used as efficiently and autonomously as possible.
In money transfers.
Blockchain technology can eliminate intermediaries such as MasterCard and Visa. These companies charge commissions for transfers. In addition, the banks themselves will soon be able to fire most of their employees, as their work will be replaced by blockchain. We are talking about data verification, working with clients and processing databases to find fraudsters.
In insurance.
There are a lot of insurance companies. Their employees may also lose their jobs. According to statistics, more than 10% of insurance payments go to fraudsters. At this time, thousands of people cannot receive insurance payments due to paperwork and corrupt officials. This proves the fact that insurance can be ineffective and unfair.
Blockchain and smart contracts can simplify the work of insurers and make it more transparent. The technology in this case will be used as a database that cannot be faked, and smart contract will oblige the insurance company to pay money to the victim in automatic mode. In this case, all conditions specified in mathematical form must be met.
Blockchain technology threatens to put huge numbers of people out of work. In return, it makes it possible to work without intermediaries. When considering this issue, it should be noted that technological progress has always been aimed at maximum labor efficiency and no dangers can stop the implementation of blockchain in most areas of human activity.