WHY IS THE WORLD GO CRAZY WITH BLOCKCHAIN?

blockchain

Regarding data storage, everyone wants: photocopy many notarized copies and send them to many other places. Cloud computing data is backed up in multiple copies, sent to multiple servers, etc., but doing so takes a lot of effort, time, and money to keep it secure. Therefore, Blockchain was born.

blockchain

For example, you own land papers of a piece of land, but one day, it unfortunately disappears, the state server that stores information about your land is dow. So what do you use to prove the land is yours later? There will be a counter-argument that there must be a backup server or replica. Yes, but what if war or earthquake destroys them all.

Blockchain solves all those problems by storing information in a single file but distributing it to all computers in the system around the world (The first form of Blockchain is Bitcoin, we will talk about it later). If all computers on a continent are destroyed, they will still be saved on another continent.

So if you save too much information in such places, will it be hacked or change the data? How does it work?

What is Blockchain?

Blockchain is a word that is a combination of 2 words block and chain. Block is where transactions are stored. When a block is formed, it is attached to the previous block by a 25-character cipher called HASH. The previous block is attached to the previous block, up to the genesis block, forming a chain. If a block is changed, HASH and all the information behind the disabled.

Therefore, in a nutshell, Blockchain is a ledger that stores all transactions that have occurred in blocks arranged in chronological order.

With a traditional bank, this ledger belongs to the bank, and only the bank can access it privately. With Blockchain, this ledger is not owned by anyone; everyone can access it (public) and maintain it. Miners who process transactions put them in blocks and then add blocks to the chain.

Don’t miss this: Will Blockchain lead the future technology?

Three important properties of Hashes

  • The same information, the similar HASH.
  • It doesn’t matter how much information people put in, such as a whole page, a whole book, or just a single character, or nothing at all; everyone can have a HASH.
  • It’s nearly impossible to decompile information once it’s encrypted. This means that if I give you a HASH, it’s nearly impossible for you to translate the information I provided initially. People can almost only guess by inputting information until the HASH is similar.
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Illustration image

What is Bitcoin mining?

Here we will clarify 3 terms Hash, Nonce, and Mine.

When we save the information of block 2 into block 1, there will be a Hash, and this hash is generated according to the principle:

Information block 2 + Hash 1 + Nonce number satisfy the system’s condition.

For example, the condition could be that the 5th character in the hash is a natural number less than 5.

Back to the problem, before we save the information to block 3, the system will ask all system members to verify that the information is true or false. This validation participant is called a Miner. Miners will guess the same condition as above (mine, also known as mining). Whoever guesses first will send the results to all machines to check whether it is correct or not. It’s usually true.

But the problem is, no one is available the whole day to turn on the machine waiting to authenticate for others. Hence, the creator of Bitcoin has added a reward mechanism that is who guesses that Nonce will be rewarded in Bitcoin. So what is the value of Bitcoin? It is used to pay when using services on the BLC/BTC platform.

Examples of Blockchain applying in Real Estate

Blockchain is a technology that, once established, is immutable, immutable, and completely transparent. Amazing! So how will we apply it to the real estate sector?

For example, in 2017, Mr. X sold Mr. Y a piece of land, and all that transaction information is stored in a block. In 2018, Mr. He sold that land to Mr. Z. In 2019, Mr. Z sold it to Ms. Q. All these transactions are written to blocks and connected to previous blocks.

By 2021, Mr. X claims that the land was formerly his. Then just checking if the block data from 2017 is true is the solution—no need to waste time summoning each person.

In another case, if Mr. X in the North wants to buy a piece of land in the south of Mr. Y must go through the intermediary of a broker and a bank (to ensure safe transactions). So Blockchain will help authenticate information between parties quickly and eliminate the intermediary stage.

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Read more: Applying Blockchain in the telecom industry ecosystem

Wrapping Up

There are many invisible things in the world that we think are tangible. For example, we have the right to use the land, but we do not have the land, and the person representing that right is the Certificate of land use rights. We have a health insurance card that represents our right to medical care. We have cash that represents property ownership, etc.

So what if we replace all those complicated papers with Blockchain technology? We can eliminate the intermediate steps because the machines do it all and are fully automated. Buying and selling statements become simple without going through an intermediary.

The same is true in real estate transactions. You don’t need to take time to deposit and notarize, make documents, etc. Just touch the phone screen to have a Certificate of land use rights in NFT form, transparent transaction, no fraud, no dispute.

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