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About three decades ago, there was the inception of dial-up-internet, then came the internet era, and now, the blockchain revolution is here with us.
Today, about nine out of ten Americans use the internet, but a fascinating recent invention is blockchain, the principal technology behind cryptocurrency. Still, in its initial stages, mainstream blockchain adoption may be some years away. Nevertheless, some people claim that its adoption will be as revolutionary as the internet.
Over the years, many people have wondered how Blockchain compares to the internet. Therefore, here is a guide that will expound on their similarities, differences, and the meaning of each.
What is Blockchain?
Blockchain is popularly referred to as the backbone behind Bitcoin. Simply put, blockchain is a decentralized, coded digital public ledger shared by many parties through a distributed network. All transactions that take place are recorded, verified, and stored in the databank.
A blockchain is a truth machine, whereas the internet is an information machine. Also, this is because information stored in a blockchain can neither be revoked nor tampered with. Therefore, blockchain could be laying the foundation for the new age internet because it has features that can overcome gaps in the current system.
Both are Protocols for Connectivity
Both the internet and Blockchain describe protocols for connectivity. Through the internet, you can connect to any of your options to share information securely. The only people who can see this information are the parties involved in the conversation, and there ought to be a path generated for information flow.
The only difference lies in the type of connection offered. Considering Blockchain, you can connect with anyone and share value. However, the exchange of importance has to be observed by everyone on the network. If you do not have the public validating protocols, blockchain protocols would be pointless. On the other hand, the internet does not rely on who else is on the network to operate.
Online transactions are protected by SSL certificates, regular system scans, and firewalls. Consumers are also allowed to add more personalized security features to online transactions. For example, they may sign up for identity theft protection services, develop strong passwords and keep their anti-virus software updated.
Possibly the most exciting advancement in security is tokenization – a system whereby one can substitute a proxy set of identifying data for the real payment card information. It not only limits exposure of sensitive data but also enables more rigorous identification factors like a picture of your face or a fingerprint.
Blockchain being decentralized gives it a great line of tamper-proof defense. It is fostered on decentralization, consensus, and cryptography, which ensure trust in all transactions. Moreover, with copies of the data accessible to all users, the overall database remains highly secure. Of course, a blockchain network is only as safe as its infrastructure. However, there are few reports of user accounts being hacked.
Transparency in its most general sense refers to a protocol’s ability to transfer data in a manner invisible to the applications using the protocol. In addition, transparency implies openness, communication, and accountability.
The internet’s transparency is only limited to communicating with parties. In this way, users of a certain application can similarly access remote resources to access their local resources.
On the other hand, Blockchain is considered a transparency machine whereby any user can join the result and view all transactions or information on the network. In cryptocurrencies, Blockchain’s transparency allows users to look through the history of all transactions.
Blockchain is synonymous with an open or public ledger. All blockchain users are assigned a public address that does not identify them in any way. As such, it is an exceptional level of transparency in the fiscal world.
Anonymity means that the real author of a message is not indicated. It is implemented to make it very difficult to find the real author of a message. Anonymity is often applied on the internet to protect people’s privacy. The internet has increased the ease of distributing anonymous messages, although anonymity is rarely 100%.
For instance, a person may decide to send an email using a falsified name. There are also anonymity servers and pseudonymous servers, which are used for good purposes.
In Blockchain, the identity of members and their transactions must remain anonymous. However, the anonymity mechanism should not impede the verification of transactions, which is important for blockchain updates. Therefore, provided there is no link between your identification details and wallet address, and your transaction remains anonymous.
A global nature means covering, relating, or influencing the entire world. That said, Blockchain has the potential to alter almost how every industry around the world operates. The idea of Blockchain’s impact around the world comes from a concept of decentralization. In reality, the change has already started. However, no one can precisely predict the future of this new technology, but the blockchain is expected to allow faster transactions worldwide that are also more secure.
The internet, as it is, is already global, enabling communication with people from any part of the country. It also allows users to get information in real-time. The internet is widespread and has revolutionized almost every sector of the economy, especially during the Covid-19 period. In the present era of social media and the internet, information spreads as fast as does haste.
Both Blockchain and the internet have striking similarities, although Blockchain holds a great future. However, Blockchain will not operate alone; it will work for hand in hand with the internet. Thus, blockchain is an improvisation of the internet.
Blockchain has an endless variety of applications, but there are still some loopholes that ought to be mended, for instance, the lack of regulations. The creation of regulatory authority will be the first step towards its mainstream adoption.
Amidst all this, we can conclude that Blockchain is creating new business models and paving the way for new applications, lowering the cost of current services, and enhancing the convenience of transactions.