We have now entered a stage whereby the vast majority of people have heard what blockchain is. However, not everyone understands how the blockchain will impact their lives. In order for us to answer this question, we must first define what the blockchain is exactly.
“A blockchain is a distributed database or ledger that is shared among the nodes of a computer network”
– Adam Hayes, seen in Investopedia
As many of you know, the current web 2.0 internet architecture is comprised of multiple server centers storing, and collecting, the world’s internet data and information. Well, the blockchain can be used to ‘distribute’ this data across multiple locations.
By distributing this data and information, a few things begin happening, one is, no one controls all the data and information, and secondly, each individual has ownership over their specific set of data, meaning privacy is at the discretion of the holder. Any information stored on a blockchain is either encrypted or anonymized, and the retrievable data is only accessible by the owner.
Digital twins stored on a blockchain
Now that we have defined what the blockchain is, we can begin defining what are the use cases for this technology. Considering that blockchain technology in itself is nothing new nor revolutionary, but instead, the technology built above a blockchain architecture can be considered ‘game-changing’.
A key characteristic of blockchain technology is twofold. One is the limitless storage potential a blockchain could grow to (in the future, of course), and the second is the personalization of an individual’s blockchain.
An individual, in theory, can create their own blockchain/sub-net that is only accessible to them. Afterward, any data or information that an individual generates will automatically be sent to and stored on their blockchain. This individual could then give streaming rights to companies in return for products and services.
Incidentally, this individual would be creating a digital copy of themselves that can be used for all types of applications which can become a way, in the future, for humans to customize every aspect of their lives.
Currently, in the real world, we are unable to create perfectly formed simulations of two occurrences with a 100% accuracy of data variables being played out in the exact same order.
For example, if we were to create a “what if” scenario about a car driving at 50km/h down a straight road, with the same driver under the same wind speeds, car speeds, car mechanics, driver’s emotional stability, etc… and we simulated a new type of tire turning a corner, or a new road sign with oncoming traffic, or even a different ring tone on a phone. We could pinpoint with 100% accuracy the cause of the outcome under these conditions due to our digital twin simulation tests.
Where does this data come from? Well, this could be one of the services an individual may sign-up for, whereby they grant access to these predictive companies to run simulations about that individual’s upcoming day and cross-reference them with other users’ days. When we begin creating complex simulations using thousands of people’s variations, it becomes a headache. However, the technology is applicable due to blockchain technology.
One key characteristic of blockchain technology is immutability. This means anything stored on a blockchain cannot be altered once being submitted. This is incredibly helpful in the finance sector.
Ok, there will be many people who’ll inevitably disagree. Regardless, the metaverse is not as simple as people make it out to be. For example, there are centralized metaverses, such as Zuckerburg’s Meta company, and then there are decentralized metaverses. Perhaps the closest example would be Decentraland.
For this example, we’ll focus on decentralized metaversal worlds, as the core concept of a web 3.0 environment is one that removes the need for intermediaries.
In the future, the world may begin transitioning toward working, playing, and communicating within a metaversal environment. A decentralized metaverse will inevitably use a blockchain to host and store applications and data. However, the decentralization/distributed aspect of a metaversal world will utilize blockchain technology.
The blockchain’s functionality for a decentralized metaverse is the distributed storing of its data combined with the authenticity of metaversal activity by each user.
Perhaps this should have been the first major point for how blockchain will impact everyone’s lives in the future, but, blockchain in finance is somewhat of a dying feature, it’s no longer exciting. The ides that cryptocurrencies are here have already been proven to a point that people no longer discuss the core concepts of what drives it anymore.
Of course, people are still raving and complaining about the fluctuations across the crypto markets, but these are often people who have missed the entire point of what blockchain technology truly offers.
Regardless, finance will be an important aspect that will govern our online lives in the future. The only difference is that the currency used will be in the form of a cryptocoin/token/asset, which will more than likely make paper money redundant in the future.
Blockchain technology is only the foundation that has for a long time needed to be built upon and integrated within the current systems we have used today. A big part of our future will use some aspect of blockchain technology.