Blockchain

“Future will be realized with digital”

People have problems in social life both in bilateral relations and in commercial, political and social life. This problem of trust among people is also experienced among corporate firms, non-governmental organizations, state and state institutions, and even among states. The search for a system to solve this problem of trust among many stakeholders led people to Blockchain technology. It is the most secure database system in human history and it is thought that it will continue for many years.

Blockchain

Blockchain technology was crafted in the 1980s, but it has become known after the 2008 Mortgage crisis. It is possible to say that this technology is a candidate for use not only in money and financial systems, but also in many areas that require centralized registration, it also offers serious advantages.

This system, which consists of continuously growing blocks, which are connected to each other like chains and which are connected to each other by cryptographic elements (hash functions), is called distributed ledger technology - distributed database, in other words, DLT: Distributed Ledger Technology.

The number of blocks added to the chain is increasing day by day and as of 2018, the total disk space is around 160 GB. Bitcoin is an open source software, so anyone can connect to this network to download, examine, or even write programs to their own computer. If wanted, can be included in the system, can hold a copy of the distributed ledge on the computer to support the Bitcoin system. Which is called mining.

The ends that hold the distributed ledger on their computer are called the full node. The full ends store the blocks that they have verified, and they do not store any blocks that they cannot verify. Having all the ends of a block the same means that it is reconciled on the block. Each block contains the hash (the summary) of the preceding block. You can go to the first block by following the hash. Whenever a block is attempted to make changes, for example, when a user attempts to write information, he is rejected by this system as it will be incompatible with the next block's hash.

Banks had previously saved all accounts in the ledger. Nowadays, every kind of registration is carried out on the bank as well as on the big servers in the centers. In Blockchain distributed ledger technology all kinds of processes are recorded in the interlocking blocks. As all the blocks are present as chains for all of the members using this system, no changes or distortions are possible. Likewise, a cyber attack has almost no chance of success. Because the same data is stored on thousands of users' computers, disruption of some of them will not have any consequences.

With Blockchain technology, crypto currencies have a mathematically precise technology and eliminate the intermediary needed by the two parties. Blockchain technology which provides the operation and the infrastructure of the cryptocurrencies, does not require an intermediary and it is transparent, but the most powerful side of it is the high security it offers. Blockchain has a great potential in terms of benefits to users, such as speeding up the process, reducing costs, improving security and facilitating operational processes. The non-centralized system of blockchain technology, which eliminates the need for third parties as a result of the expansion of cryptocurrencies, is thought to have a significant change or disruptive effect in the financial system as it carries out the transfers in an anonymous and very low cost (one thousandth of the amount).

Blockchain technology is a technology adopted by the majority of countries and corporations around the world. In our country, this technology has been started to be closely examined by the Ministry of Science and Technology, TUBITAK and Central Bank at the beginning of 2018 and harmonization studies are still in progress. Non-governmental organizations await the steps of public administration in this regard. Many of our corporate companies have been using this technology for a number of years and other companies are monitoring closely.

Although the areas of use of Blockchain technology is thought to continue to increase with each passing day, the common uses of it for now are as follows;

E-Notary
Electronical Voting System
Land Registration System
Copyright
Smart Contracts
Product Tracking System
Banking
Payment
Money Transfers
Security of Money in the System
Supply Chain
Internet of Things
Insurance
Government Operations
Elections
Energy Management
Cyber Security
Financial Forecasting
Transportation
Car Sharing
Cloud Storage
Fundraising
Mass Funding
Health Service
Online Music Sector
Identity Management Systems
Chronological Registration for Original Products (Patent)
Retail Sale
Real Estate
Evidence and Record of Vehicles and Valuable Assets
Keeping Birth, Marriage and Death Certificates
Realization of Elections
Storage
Processing and Management of Financial Documents

Here are some examples of the use of blockchain technologies in different sectors and areas such as finance, health, science and industry:

- IBM, a technology giant using digital technology to facilitate international trade

- IBM-partnered blockchain-based trading finance platform with UBS, Bank of Montreal, CaixaBank, Erste Group and Commerzbank

- Use of blockchain technology for monetary transactions related to cotton shipment from US to China between Wells Fargo and Commonwealth Bank of Australia

- Denmark's Maersk Line, one of the largest maritime transport operators in the world, started to use the blockchain infrastructure by starting a strategic cooperation with IBM in order to save time and cost in the operation of international vessels and cargoes (containers), to accelerate the process and to avoid the procedure of the documents

- Grundig (Blockchain Grundig), Germany's international company, now embeds blockchain technology infrastructure marketing network all over the world

- The German company, Siemens, uses Blockchain technology in the transfer of information in the internet of objects, artificial intelligence and robotic systems.

- The world's largest food giants such as Walmart, Unilever, Nestle, Dole and Kroger's partnership with IBM to monitor the global supply chain for food security with blockchain technology

- Efforts to manage the storage and management of Swedish land registry records with a blockchain

- Global technology company Bitfury signed an agreement with Georgia as a pilot country for the registration of land titles, the same company also made the largest state agreement with Ukraine to place all the electronic data in the infrastructure of the blockchain system

- In South Korea, the Seoul government has agreed with Samsung for the blockchain-based technologies that it needs. Hong Kong and Singapore also stated that they will use blockchain technology to address the problems with trade issues and to unite their commercial platforms.

- Renowned technology company Xerox which is known for its printers, announced that they invest in blockchain technology for the secure review of electronic documents

“Blockchain is a 22nd century technology that fell by chance into the early 21st century” 

Edward Witten, Physicist

References

1- Prof.Dr. Orman Sabri, Modern İktisat Literatüründe Para, Kredi ve Faiz
2- İSEFAM Assoc. Dr. Sakarya University, Faculty of Theology. KRİPTO PARA BİRİMLERİ VE FIKHİ AÇIDAN DEĞERLENDİRİLMESİ
3- Betül Üzer, Sanal Para Birimleri, the Central Bank of the Republic of Turkey Directorate General Payment Systems Thesis
4- Şerif DİLEK, SETA BLOCKCHAiN TEKNOLOJiSi VE BiTCOiN, February 2018
5- Dr. Abdurrahman ÇARKACIOĞLU, Crypto-Currency Bitcoin CMB Research Department Report 2016
6- Nakamoto, Satoshi, Bitcoin: Peer-to-peer Electronic Cash Payment System
7- Ekovizyon Magazine, www.ekovizyon.com.tr
8- Ergün DİLER, Takvim Newspaper column
9- Erkan Öz, 2020; Büyük Kriz Müthiş Fırsat Yeni Ekonomi
10- Erkan Öz’s Twitter Floods
11- Erkan Öz, KriptoParalar ve Ekonomik ve Finansal Yıkım
12- Microsoft Turkey Vice President Cavit Yantaç, Gündem Teknoloji
13- Microsoft Turkey Vice President Cavit Yantaç, Blockchain, December 7, 2017, Ankara Summit 2017.

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