Blockchain: Database of the Future and Possible Usage Areas of It 27 December 2017

Blockchain, named as the most secured database ever made, is software designed to create a database that can record the transactions of virtual currencies such as Bitcoin. With this software it is ensured that the stored transaction is simultaneously recorded on the database of corresponding transaction by adding to the end of the chain of transactions in which all previous transactions have been recorded. However, the most important feature that distinguishes Blockchain from other database systems is that Blockchain is not registered in a single (main) center.

Specifically to Bitcoin, Blockchain is stored simultaneously on the servers and hardware of Bitcoin users. On the other hand, only a small portion of the information is stored on the database in server of each user and does not make any sense without the information stored on the servers of other users. For this reason, the security of the system cannot be breached unless a cyber-attack on Blockchain is done simultaneously with 51% of all servers and hardware in the hands on Bitcoin users. Considering that it is virtually impossible to provide the resources needed to make an attack of this magnitude, Blockchain is considered as a highly reliable database system.

Today, there are also different areas where Blockchain technology is used beside from Bitcoin and other virtual currencies. For example, the Estonian government has introduced the first electronic voting system for its citizens using Blockchain technology. Additionally, some Dutch-based banks are trying to use Blockchain to reduce their costs, and also the Australian Stock Exchange tests Blockchain technology for the registration of stocks traded on the stock exchange.

Blockchain technology is a technology which can be applied to banking transactions in which virtual databases are used, title deed records, the registers of persons and any other area where digital identity is used. For this reason, Blockchain is considered as a technology to be used in a significant part of our lives in the future. Although some states are skeptical about Bitcoin and other virtual currencies and even if they are taking steps to forbid them; since the virtual currencies will bring radical changes to the traditional financial system, many governments are working on understanding Blockchain technology and adapting it to their own systems.

However; since the legal provisions regarding this issue have not been made yet, the use of Blockchain technology should be determined for every case specifically regarding the general provisions in order not to violate the existing legislation provisions. Beside its protected structure against outside interference, Blockchain is designed in a way that anyone who uses the database can potentially access the information in the system. As a reason, the information of users must be protected under the Law on the Protection of Personal Data. Furthermore, it is unclear who will be held liable for the loss or corruption of the data due to the lack of a main center. In addition; since the virtual currencies such as Bitcoin use Blockchain technology, there is a risk of damage due to fraud or similar crimes included in Bitcoin. In this sense, our Office who has a specialist team in this field provides legal support for real and legal persons in order not to encounter any legal or criminal liability.

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http://www.kasaroglu.av.tr/tr/veri-tabani-blockchain-ve-kullanim-alanlari

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