The cryptocurrencies we are aware of to date make use of a decentralized network called blockchain technology. Blockchain records and documents every digital transaction take place inside the network using a particular digital currency. Blockchain technology is a digital transaction ledger which maintains identical copies across each member computer operating within the network. Anyone willing to record a new entry or view the previous record has to review the blocks added with the previous record. Blockchain technology contains complex math rules which prevent any trespassing without solving it. This ensures a more secure and trustworthy transaction.
The blocks protect high-value contents. And thus, they are encrypted with powerful cryptography for complete protection. This also means that previous entries to the blocks can’t be forged or destroyed. This is the main reason blockchain technology doesn’t require any central authority to govern the entire digital transaction for maintaining a trusted transaction network. Of course, this is the primary reason for developing a decentralized network technology like blockchain.
Blockchain Technology: Powering the Future
Since starting, blockchain technology is mostly famous for helping digital currencies to rise. But its non-cryptocurrency uses have come into view in recent days. Some believe that blockchain technology can outpace digital currencies in terms of the overall impact and that’s why the real potential of this technology remains unexplored to date. However, financial advisors and many professionals from the investment world has started exploring scope from blockchain technology. It is a belief that the scope for exploring this innovative technology will greatly increase in the coming years.
Exciting & Popular Uses of Blockchain in the World of Business & Finance
One of Deloitte’s reports says the transfer of value has been both slow and expensive especially the transactions take place across international borders. One of the prime reasons for this is that the transfer process requires multiple banks’ involvement at multiple locations when multiple currencies are included before the recipient can collect his/her money. However, there are services to faster the process but are somewhat expensive.
Blockchain technology, in that case, can provide a much cheaper and faster alternative to cross-border transactions. While typical money remittance costs as high as 20% of the transfer amount, blockchain technology can do that as low as 2% in addition to real-time and guaranteed transaction processing speed. This can be the most promising use of blockchain technology applications in the coming years. The only hurdle is passing regulations of cryptocurrencies and security measures which will be eliminated soon.
If you want to see a highly powerful application of blockchain technology, then you should check out Smart Contracts. Smart Contracts are the self-executing contracts with the terms of the agreement between buyers and sellers mutually satisfying the lines of code. They are a set of computer programs that can oversee all aspects of an agreement, from beginning to end. Smart Contracts can provide a more secure and automated alternative to traditional contract law if conditions satisfy. It can also offer a reliable application that is faster and cheaper than traditional methods.
The potential application of Smart Contracts is limitless and can be applied to anywhere contract law is normally applied. Smart contracts are not a magical substitute for traditional diligence. The decentralized autonomous organization is a cautionary tale and a warning to investors to not assume that smart contracts are any better than the information and organizations that a user puts into them.
Nevertheless, smart contracts are one of the most famous applications of Blockchain technology beyond the cryptocurrency space.
One of the problematic results in this internet age is identity security. How much precautions you take to secure your digital information, there are nefarious actors always present to steal your digital data and sell to earn profit out of it. Blockchain technology has already proved outstanding in the case of identity management. The application of blockchain in verifying digital currency transactions is seamless. It firsts authenticate the transaction and approve before entering the information into chains. The same mechanism can be applied anywhere where identity verification is viable and necessary.
Blockchain, at this point, is a technology that has a wide array of potential uses. Although Blockchain is most famous across the blossoming cryptocurrency world, the processes have already started to explore its broad application in other sectors. New things in the blockchain are continuously explored daily. So, it’s time you should focus more on the blockchain rather than focusing on cryptocurrencies.
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