Blockchain, a term that we have heard a lot lately and somehow came to our ears, sounds confusing and difficult to understand for many people. In fact, logically, this system, which is not much different from a database, we will see every day that it begins to transform all future systems. To put it simply, we can go through database systems.
We use database systems to store and protect our data, and we have been using them for many years. In general, we keep data in a centralized storage area and take many measures to ensure its security. Although we have developed various new technologies to meet the increasing storage needs over time, it has not been possible to go outside the storage system connected to a center or an agency.
There are three different types of network systems that we have developed so far. First, single-center networks hold the entire asset, such as a bank with a single branch and vault. If there is a robbery or a technical problem, everything is turned upside down. We can compare it to a bank with a multi-center network with many branches that are partially interconnected but have a more secure and sustainable system. It is more advantageous than a single-center system, which is how many systems work today.
So what is a decentralized distributed system?
In a distributed system, everyone involved in the system is also a server. Data is stored not just in certain places, but in everyone. Thousands of people working as verifiers on the same network keep the system afloat by checking and verifying millions of pieces of data every second without knowing or seeing each other. These transactions are processed end-to-end, creating a blockchain that can be tracked and verified to ensure the system is still intact. In this way, blockchain decouples the trust and intermediary factor, which is the main problem, especially in finance and trade.
The payment of commissions to the seller eliminates the need for a brokerage firm or authority when buying a product, the only additional payment you will make are small transfer fees paid to cover the cost of the servers that keep the system afloat during the transfer. From the moment it entered our lives, blockchain has become an alternative to many systems in a short time, transforming many systems, and it is obvious that it will be much more in our lives in the coming years as individuality increases.