Blockchain has been the talk for a long time now, and it is clear to see why. Blockchain is the future for many reasons, and this is all beneficial to companies, and also Malta, who has been named Blockchain Island. But why is Blockchain so important for the world and especially for Malta? What makes Blockchain essential and why is the Maltese Government pushing this area so much. I will be discussing all this below giving important to how the Maltese Government improved their economic state by thinking ahead of the curve and having a progressive mentality.
The exact definition of the word Blockchain given to us by Google is ‘a digital ledger in which transactions made in bitcoin or another cryptocurrency and recorded chronologically and publically. But this doesn’t really clear the air with what blockchain actually is and what this technology does, so to start off with, it is safe to start from its origins. It was created by Satoshi Nakamoto who through creating the famous cryptocurrency Bitcoin created also bitcoin.
So how does Blockchain actually work? Let us say someone requests a transaction, the requested transactions is broadcasted for a peer 2 peer review, consisting of computers known as nodes. This network of nodes passes through a process to validate the transaction. A verified transaction can involve bitcoin/any other cryptocurrency, contracts, records or other forms of information. Once it has been verified, the transaction is combined with other transactions to create a new block of data for a ledger. The new block is added to a then existing blockchain in a way that is unaltered and permanent. In passing through that process the transaction would have been completed in a safe and reliable manner.
To understand Blockchain ever more one has to understand the difference between a centralised method of transaction or decentralised method of transaction. A centralised mode of transaction is beginning to phase out because it pushes an agenda. A centralised mode is when someone passes a set of information or money or anything through one person, or one agenda. The Decentralised method is favoured because a transaction is reviewed by different people who agreed with each other on what to validate and not validate. Therefore the decentralised method is safer because an agenda does not pass through just one agenda. Decentralisation cannot be controlled by any single entity and this is the heart of Blockchain.
Malta has not been sceptical of new ideas and technologies, it is able to push Blockchain so much due to the advances it had with the iGaming industry. For a bit of context when online gambling sites were taking off in American at the beginning of the century, a new law passed that online gambling sites are legal in America, thus the Maltese government found a niche where it was fairly unventured and hosted these online gambling sites. You can click here to see a guide on how to gamble online with cryptocurrency. In doing so they have helped Malta’s economic growth. The Maltese government was not sceptical about cryptocurrency and now it has reaped what it sowed around 15 years ago.
The DELTA summit that was hosted in Malta last year solidified the fact that Malta is ready to push Blockchain, it has been nicknamed The Blockchain Island for a reason. Malta is willing to help companies in Blockchain, iGaming and Fintech because they realise that it is where the future is heading, and the name of the game is to be ahead of the curve.
Blockchain came a long way and thanks to the Maltese government progressive thinking it was not sceptical and quick to judge what it has to offer, after the massive boom in iGaming they were ready to accept Fintech and Blockchain companies because they saw what can happen. The idea is to stay aware of what is happening around the world and doing it better and differently, for example, Malta was one of the first to regulate iGaming in Europe, this type of active participation in current events will keep Malta at the top.