If you’re still not sure of what Blockchain is or what it is for, we have just released an article explaining the basis of this amazing new technology. Check it out here.
To summarize, in that article we explained that Blockchain allows to store data in a distributed ledger that can’t be changed by anyone. This makes it a really good way to store value and allows to create Smart Contracts, which are pieces of code that, basically, sends funds to one account or another depending on certain conditions.
Ethereum is the main Smart Contract enabling Blockchain and the one we will refer to in this article. This network is distributed along thousands of nodes around the world, is the one with a more active developer community, and is the one with more tools intended to ease its adoption.
One of the main things you can develop with Smart Contracts is to create your own cryptocurrency, which acts in the same way as Bitcoin or Ethereum in the fact that it is secure, but you can configure it to be adapted for your own needs. But you can also create much more complex applications, which are called Decentralized Apps or DApps.
Traxain’s CDC (you can check what CDCs are in this article) is one of these DApps, but why have we chosen to create our platform in this way instead of a more traditional approach?
Let’s be clear, there is nothing magical about blockchain, the use of blockchain does not make a particular solution more worthy than a traditional one. Using the latest technology does only make sense when it has a clear purpose. Technology enthusiasts like us often lose this point and put the horses behind the wheels, trying to find a good use for blockchain instead of focusing on creating something useful first.
In our case, we decided to use blockchain after considering other options because it incorporates some in-built features that improve the security of the system without needing to develop and maintain it ourselves. In the same way that cloud computing allows companies to use computational resources without the need to run physical servers in the basement and making sure they are up and running 24/7, the Ethereum network allows us to have bank-grade security features without spending hundreds of thousands of dollars on development.
The first and most important of these security features is that, as we pointed earlier, the blockchain allows us to have immutable data, so a hacker will never be able to change or delete the data we rely upon to work. Another characteristic is that the blockchain itself works with public and private keys which are cryptographically secure, so instead of creating ultra-complex and cumbersome systems, we just rely on the by-default encryption used by the main wallet providers like Metamask.
Another feature is that the Ethereum network, although shared, is by itself almost anonymous (the technical term is pseudonimous), so we don’t expose the identity of the participants on the networks but only their public keys. Other sensitive data can be obscured as well to prevent anyone from seeing it.
But above all these advantages, the fact is that Ethereum is the main player in the future of the web. Cheap and scalable solutions are being developed on top of it in order to perform all kinds of computational tasks in a distributed way, that is, without depending on a distributor like AWS or Azure. Distributed storage systems are also being used to store files, and as we pointed earlier, even identity will be freed up from the current internet giants in favour of distributed systems such as Crypto wallets.
That’s why we have decided to have a Blockchain First development strategy, to build the necessary capabilities to be prepared for future developments. Thus we avoid creating a conventional platform that would need to be later migrated to the new paradigm.
Of course, not all of our platform is on the blockchain, we acknowledge that this new technology is a bit scary, and to be honest, a bit difficult to use. That's why we have created a standard API to interact with our Smart Contract in the case clients don’t know how to use a Wallet. Thus, we are creating a bridge to ease the adoption of this technology. This API also allows us to integrate our DApp in third party platforms, much in the same way that Paypal or Stripe are integrated into ecommerce sites.
If all of this sounds interesting to you, don’t forget to comment your thoughts and questions, or mail us if you want to know more about our company. In the following days we’ll post some articles on how to use the platform and on how it works.