For many hundreds of years, humans have disguised their writings by shrouding them with the help of secret coding. Such a practice, used by innocent school children, curious minds incarcerated prisoners, and criminals alike, is better known as cryptography, defined by Merriam-Webster Dictionary as “the enciphering and deciphering of messages in secret code or cipher.”
Cryptography also has another definition: “the computerized encoding and decoding of information.”
How cryptography relates to blockchain technology
Records are stored for property dimensions, historical events, pending legal issues, public stock offerings, and everything else imaginable. Such documentation is often stored in both physical and digital form.
A major vulnerability of such means of storing information is their susceptibility to corruption, deletion, misplacement, or modification. Blockchains are extremely long compilations of records that cannot be deleted, modified, or corrupted. Each entry to proper blockchains have information related to transactions that placed such submissions there, timestamps to ascertain exactly when such activity occurred, and hashes that effectively can’t be reversed, thus preserving data they contain.
Those hashes are more or less ciphers used to verify the legitimacy of previous blocks. Unlike the ciphers used by the individuals used in the example above, hashes are verified through mathematical means which are initially secured to blockchains using complex mathematical procedures.
Blockchains are more secure than any form of record-keeping methodology ever developed by humanity. As such, blockchain technology is likely to disrupt several industries.
Thanks to privacy-protecting legislation like HIPAA, healthcare service providers are solemnly concerned with guarding patient data. Experts believe that over half of healthcare applications will have brought the technology on board by 2025, though we may see a surge of adoption in the near future, given the countless cyber attacks that have been launched on medical institutions in the last year alone.
Keeping up with client information is essential to doing business in financial services. Securing clients’ transaction ledgers and storing them for years to come isn’t cheap. WIth blockchain in the industry’s readily-distributable portfolio, banks and other financial institutions will start saving on sensitive information storage.
Crowdfunding continually grows in popularity, though people can’t be sure of the destination of dollars they donate. However, with the proliferation of blockchain technology, more donors will offer more money due to an increased sense of accountability and visibility.
Evidently, a number of industries would greatly benefit from integrating blockchain technology into their core business models. It will certainly be interesting to see how quickly such a shift could take place, especially as concerns about cybersecurity continue to rise.