Anyone who has been following trends in technology and finance for a while now would be wondering if this blockchain would be yet another cloud computing or bigdata or even the internet of things.
Fintech engineers are yet at it again to confuse us a bit more or rather give us concepts to argue about. It took me some years of practice and research to get a firm grasp on the meaning of concepts like; cloud computing, big data or internet of things (IoT).
Two things are involved; either that am a slow learner or that practitioner finds it difficult to explain certain technical concepts.
What is Blockchain?
Blockchain also known as distributed ledger or distributed ledger in simple term is the technology that powers Bitcoin. It is the secured database that records Bitcoin transactions and also used to initiate those transactions.
Many industry watchers claim that blockchain has the potential of thriving amongst financial institutions not minding the mixed feelings that is currently hampering smooth development of Bitcoin.
One major drawback of blockchain is the fact that the system is not hardened from tamper by the major operator of blockchain. This is a major security concern as a compromised operator will pose an open ended calamity; although data and other information resources in blockchains network is encrypted.
What is cloud computing?
The definition of cloud computing has had quite a journey ranging from early adopters definition to the current definition. One thing that remained central is the fact that computing is used to deliver hosted service that allows companies to buy and sell computing resources. Cloud computing is also referred to as the cloud.
What is Big Data?
Big data are set of both structured and unstructured complex `data that we can harvest useful information from. Big data analytics are powerful processing tools that are used to make sense from the otherwise chaotic situation of information in various volumes, velocity, varieties.
What is Internet of Things (IoT)
Broadly speaking, IoT is a term used to describe the relationship that objects have. The advancement in technology made it possible for things that could only communicate in the past in our dream to now not only communicated but could establish a meaningful relationship.
My little cousins that came for summer holiday visits damaged the remote to my decoder and all I did was to simply use my phone as remote. This would not have been possible in the past. That is the power of IoT made possible by technology.
Unlike other technology concepts like bigdata, Internet of Things (IoT) and cloud computing, blockchain actually means same thing to everyone regardless of how you look at it.
Reasons Why Blockchain Will Not be yet another Confusing Complex Concept
1. Used by highly technical professionals
The nature of Blockchain does not really permit everyday people to meddle with it. You have to be very technically inclined before you will have much to do blockchain platform. This may not be the issue if as currently being predicted by many high street banks adopts this architecture as a medium of handling banking transactions.
2. Has a well defined objective
The main and only objective of blockchain is to act as a means of recording, generating and processing transactions that are financial in nature. Unlike most technologies that can be anything to anybody.