Blockchain technology has been on a consistent rise over the past few years and it is one of the hottest trends in banking, investment, and cryptocurrency. The rate at which the use of bitcoin is increasing has brought a world change of currency. Blockchain’s is predicted to have a lifelong effect on the economy in the following years.
Blockchain is an online technology database that stores a list of transactions which has been automatically updated across a line of independent computers. It is a technology that is set to change the way commercial industries operate in the future.
To understand more about blockchain we will use Google Docs as an example. On Google docs, documents written are distributed and shared instead of being copied. This creates easy access for different people at the same time to the document. Also, changes can be made at the same time as other people watch.
Although blockchain is way more difficult than google Docs, but with its technicality, comparison is possible. Blockchain helps cancel fraud and decreases risk compared to online banking. It comprises a centralized network that verifies transactions and a rigid ledger that is maintained by the network.
The ledger being shared can be seen by everyone but can’t be tampered with. It doesn’t involve a third party that controls the data like google, or banking sector.
Advantages of Blockchain
There are advantages that comes with to the use of blockchain technology
When blockchain technology is used it conducts fraudless transactions as it has a feature called digital signature that prevents such actions. This made it void of corruption or data change on an individual’s account.
The mutual consensus of users is used to perform transactions in blockchain. This is unlike the conventional ways in which higher authorities are needed to perform transactions. This makes blockchain transactions easier, faster, and safer.
Blockchain technology generates events, payments, action automatically when yardsticks are met.
Application Of Blockchain Technology
Blockchain is one innovation that is disrupting many industries. Infact, many organisations are finding blockchain technology better than traditional methods. Whether for completing important element tasks or ensuring secure financial transactions.
As blockchain provides transparency and reliability, this has helped distributors, manufacturers, and retailers to track their goods easily through the process of the supply chain.
This technology is of importance to upstream and downstream businesses. They prevent theft and fraud and ensure the safe delivery of products to the market.
Blockchain technology has a wide array of usage in healthcare. It helps pharmaceutical manufacturers, retailers, and wholesalers monitor their products at every delivery stage process.
It helps to easily access patient diagnosis records that have been lost. As blockchain provides a securely encrypted transaction, it helps patients to have a hedge over their medical information and are opportune to share or not with any medical professional.
Moreover, researchers and medical practitioners have been able to unlock genetic code through the power of blockchain.
As blockchain technology provides a verified transaction without being forged, the financial industry has taken much interest in this type of technology. In the shares and bonds market, blockchain technology has changed the structure of financial services.
It has also introduced crowdfunding, which is also known as raising capital or lending capital. This is achieved by raising some amount from a large group of people using the internet.
This crowdfunding is being achieved by what is called Initial Coin Offering(ICO). This hosting called ICO offers investors the right of ownership in exchange for liquidity. Owners of a company can sell their right of ownership in the form of a coin for example bitcoin.
However, the use of crowdfunding and ICO has increased rapidly as well as poses a threat to commercial banks and investment banks. Whereas other industries in the financial sectors have gained a lot from the blockchain benefits which includes verifying transactions, providing easy access to liquidity and providing financial instruments.
Blockchain and Bitcoin Compared
Blockchain uses bitcoin to record data points whereas bitcoin uses blockchain to transparently record a ledger of payment. The bitcoin protocol is founded on a blockchain whereas blockchain allows digital information to be recorded and distributed but cannot be edited.
Blockchain technology has finally gained ground with rapid usage of bitcoin and cryptocurrencies. Investors also know the advantages of Blockchain and many sectors are already integrating Blockchain into their operations. In short, Blockchain is everywhere!