In recent years, we have heard a lot of talk about “blockchain technology”, particularly referring to cryptocurrencies such as Bitcoin. But what is blockchain? In order to be able to answer this question completely, it is important to define what the technology used is, how it works and its importance in the digital world.
In short, we could define it as an innovative database technology at the basis of almost all cryptocurrencies, but not only. Its peculiarity is its ability to make it very difficult to hack or steal information within the database, so its strong point is security. Even though cryptocurrencies are currently the most popular use of blockchain, the technology offers the potential to handle a wide range of applications. Let’s delve into the world of blockchain in more detail together.
Summary
How does a blockchain system work?
The blockchain can be defined as a shared, immutable ledger that facilitates the process of recording transactions and tracking assets across a network. An asset can be tangible (a house, car, money or land) or intangible (an intellectual property, patents or copyrights).Â
The operation of blockchain technology is based on a structure that stores every user transaction, considered as a block, in several databases, called chains, in a network connected through peer-to-peer nodes.
While any traditional database can store this type of information, a blockchain is unique in that it is totally decentralized. Instead of being maintained in a single location by a centralized administrator – such as an Excel spreadsheet or a bank database – numerous identical copies of a blockchain database are stored on multiple computers spread across a vast network. These individual computers are called nodes. Transactions are typically protected by cryptography, which requires nodes to solve complex mathematical equations to process a transaction. Â
Why is blockchain secure?
Blockchain is a particularly promising and revolutionary technology because it helps reduce risk, eliminate fraud and bring transparency in a scalable way for a multitude of uses, as explored above. In addition, the security of the blockchain makes it much more difficult to steal, as each cryptocurrency has its own identifiable and irrefutable number, linked to a unique owner.
What is the blockchain used for?
The blockchain has an almost infinite number of uses in almost every sector and many large companies are already using it. It can be applied to track fraud in finance, to securely share patient records and even as a way to track intellectual property in companies and music rights for artists. Let’s analyze each area of use in detail.
The betting industry
The gambling industry can use blockchain to provide various benefits to players. One of the biggest benefits of operating a casino on the blockchain is the transparency it offers potential players. Since every transaction is recorded on the blockchain, bettors can be sure that the games are correct and that the casino is making payments. In fact, all the best Italian secure casinos have started to run their business this way. Also, by using blockchain, there is no need to provide personal information, including a bank account, which could be an obstacle for some players.
Non-Fungible Tokens and Digital Rights
Non-fungible tokens, or NFTs, are generally considered as a tool to manage rights to a digital artwork. Since the blockchain prevents data from being duplicated or copied, placing an NFT on the blockchain guarantees the existence of only one copy of a digital artwork. In this way, it is like buying a physical work of art, but without the inconveniences associated with its preservation, maintenance or forgery.
Overview of entertainment industry sectorsÂ
The film industry is gradually embracing blockchain and NFTs, although the process is somewhat slowed down by regulations. Hollywood studios have already moved to introduce exclusive NFT collections of film characters through blockchain companies. Indeed, the integration of this technology within the film industry and the rise of digital collectibles have created endless possibilities for industry players.
Blockchain applied to the world of gaming solves a number of industry problems: from security concerns to the ownership of gaming assets. In particular, players can enjoy permanent ownership and complete control over their digital objects, as these would be registered as NFT tokens. All in-game assets such as tools, skins, collectibles, cards and characters can be fully controlled and become personal assets, which can also be sold.
Decentralized blockchain technology applied to eSports, on the other hand, can make life easier for the industry’s various players. Benefits include the management of the process of distributing prize money, media rights, advertising, transferring assets to players and so on. The transparency of blockchain technology also helps eSport developers and players protect their work without providing anyone with unauthorized access.Â
In conclusion, it is only a matter of time before blockchain technology becomes central to the way we interact with new media. Interest is growing and the entire entertainment world will incorporate blockchain into its business model to reap the benefits and advantages.
