# Blockchain in Theory By [crummyGatorade1](https://paragraph.com/@crummygatorade1) · 2022-04-18 --- A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains have gotten popularity from cryto currencies such as BitCoin, Ethereum, and Binance. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. The idea of blockchain changing the world comes from the concept of decentralization. It’s the pseudo creator, Satoshi Nakamoto, who created the currency BitCoin that led to the discovery of blockchain technology. If you see the timeline, you will see that the decentralized cryptocurrency was created around the last global financial crisis, which gives this discovery much more importance. If you are familiar with the current system, you will see centralization everywhere. Centralization is a tested way to deal with processes. It offers control with relatively effective and efficient means. However, it does come with a lot of disadvantages. The main disadvantage is its ineffective approach. Centralization is generally not so friendly when it comes to efficiency. More so, the other obstacles include — no transparency, lack of proper security, and fraud detection. All of these are just too much to ignore now. If you ever try to buy a house, you will have to go through a lot of steps. It is a tedious process that can easily take up to months. It also includes a lot of paperwork. On top of all of these, you also need to pay a lawyer’s fee. The process of buying a house depends on the place where you live. In some places, it can be much easier, but overall, it takes a lot of time and effort to buy one house. The real estate market also suffers from the trust. It is easy to do frauds and create paperwork that is forged. To ensure trust, a lot of paperwork needs to be checked and managed by multiple entities, including government agencies, banks, and so on… When it comes to blockchain, you do not have to deal with so many intermediaries. It is a trustless platform. This means that you know what you are doing and what you are getting into. You can verify the owner of a property before making the deal. The agreements are transparent and are tamper-proof. This makes everything work smoothly. It also means that you have to do very little paperwork, improving your purchasing experience to a whole new level. In reality, it affects the real estate markets heavily, which is connected to the global economy. Therefore, blockchain can transform the global economy. The blockchain technology allows peer-to-peer transactions to take place transparently and without the need for an intermediary like a bank (such as for cryptocurrencies) or a middleman in the agriculture sector. By eliminating the need for a central authority, the technology changes the way that trust is granted — instead of trusting an authority, trust is placed in cryptography and peer-to-peer architecture. It thus helps restore the trust between producers and consumers, which can reduce the transaction costs in the agri-food market. The blockchain technology offers a reliable approach of tracing transactions between anonymous participants. Fraud and malfunctions can thus be detected quickly. Moreover, problems can be reported in real-time by incorporating smart contracts (Haveson et al., 2017; Sylvester, 2019). This helps address the challenge of tracking products in the wide-reaching supply chain due to the complexity of the agri-food system. The technology thus provides solutions to issues of food quality and safety, which are highly concerned by consumers, government, etc. The blockchain technology provides transparency among all involved parties and facilitates the collection of reliable data. Blockchain can record every step in a product’s value chain, ranging a product’s creation to its death. The reliable data of the farming process are highly valuable for developing data-driven facilities and insurance solutions for making farming smarter and less vulnerable. If you think that blockchain cannot change the world, then you are not alone. There are many experts who think blockchain is not enough to alter the course of actions of this world. However, recent findings do predict that blockchain will succeed in doing so. Keep in mind, new projects are being devloped everyday using this new technology. Follow the movement and learn more about how the digital transformation of our culture with blockchain will impact your life. --- *Originally published on [crummyGatorade1](https://paragraph.com/@crummygatorade1/blockchain-in-theory)*