It allows for the first time to permanently transmit a digital asset and not a copy of it, as in the case of use that created and made famous this technology: the payments in Bitcoin and other cryptocurrencies.
Decentralized means distributed on multiple nodes over the Internet and managed by several players at a global level. This gives the effective possibility to create a technological infrastructure above the control of the single nations.
Blockchain is an open source technology, so anyone can get the source code and create a copy tailored to their needs. Alternatively, it is possible to find on the market solutions as a service provided by the big digital players.
Blockchain can be consulted online, either publicly or privately depending on the specifications of the platform used. For example it's ideal for tracing a supply chain or develop data exchange systems between nations.
If needed blockchain guarantees decentralization, ie it prevents a single entity from reaching the control of all data. Therefore, the algorithm allows to manage also the writing process of new information with a distributed approach.
Why will they become the dominant payment method in future ?
Bitcoin, the first cryptocurrency, sees the light. We are in 2009, in full explosion of the global financial crisis, generated the year before by the American subprime mortgage bubble and the bankruptcy of Lehman Brothers.
Blaming the inefficacy of the market control authorities, a team of people design a technological infrastructure whose mission is to create a supranational and decentralized financial system, ie not controlled by nations.
Hidden behind the pseudonym of Satoshi Nakamoto, this collective of people releases the blockchain as open source technology, divulging it for free, and launches the first coin whose name we all know: Bitcoin.
By analogy with the traditional banking system: if the wallet is our bank account in the crypto world, the Bitcoin Lightning Network is the prepaid card. It allows you to load the credit transferring Bitcoin or other cryptocurrencies, and then you can pay in a second with trifling fees thanks to the new offchain transactions, ie not performed on the blockchain.
You are selling a valuable painting, but the buyer from China wants to bind the purchase to the analysis of one of his trusted experts. You accept and create a smart contract. The expert comes to visit the picture in person and the result is positive. With one click, you instantly receive the amount agreed with the buyer and hand him the picture, relaxed.
Pros, cons and status of adoption of this new technology
The spread of the blockchain is very recent and therefore human resources with the skills necessary for the development of technology are very rare and above all concentrated in particular geographical areas of the planet.
Several large digital players have already started providing blockchain as a service solution optimized for the business. The spread and use in all fields of application is now only a matter of time.
The crypto market is composed of a group of early adopters subjected to strong speculation. A balance will be found with the diffusion of technology and mass adoption.
The beginning of uniform global adoption of a new decentralized financial system is in progress that is above the control of single nations.
There is an excessive use of energy on blockchains related to cryptocurrencies, which will be resized over time by offchan transactions of the lightning network and corrected by future updates of the mining algorithms.
The recent declarations of the European commission and the new laws approved in the main nations of the world recognize cryptocurrencies and tend to regulate their use with an orientation favorable to the development of technology.