Blockchain

The next disruptive technology after the internet and AI

Blockchain is labeled as the next disruptive technology after the internet and AI. It enables decentralization by operating in a peer-to-peer manner and allowing for transparent operations, which are verifiable by all peers that make up the network, through consensus. Multiple transactions are grouped in blocks, and all blocks are linked together after they are verified by all peers, thus resulting in a chain of blocks - blockchain. Although most of people who have heard about it, think about the economical aspect and that cryptocurrencies can be traded for profit, the technology itself has immense potential and will change the world.

Some of blockchain's key features are:

  • Transparency: by storing all transactions publicly, each user can view and verify the transaction history. This aspect is crucial in a rewarding system because users can independently verify the rewards they received, as well as confirm the fairness of distribution.

  • Security and immutability: Peers of the network verify all transactions and reach an agreement through consensus, by applying cryptographic technique to verify each piece of data. After recording a transaction on the blockchain, it is almost impossible to manipulate it. This immutability of transactions will guard the integrity of the reward system, preventing unauthorized changes to the rewarding system and the token distribution.

  • Decentralization: By rewarding users through blockchain, we eliminate the need of intermediaries, as well as centralized entities, such as banks of payment processors, that will gather all the data and have the freedom to alter it without users knowing. Users will receive their rewards directly, reducing fees associated to data centralization and manipulation.

  • Smart contracts and Operation Automation: The Ethereum blockchain supports smart contracts, which are self-executing agreements with predefined conditions, that are deployed on the blockchain and can be interacted with. They can automate the reward distribution process in a transparent manner, ensuring that users receive their rewards based on predefined criteria.

In the next chapter, the exact way in which we will implement the system and send the rewards to the user, will be presented.