Blockchain was introduced to the world with the entry of the globally famous cryptocurrency, Bitcoin. Now, it is important to know that the applications of blockchain technology are not limited to bitcoins. As one digs deeper into this futuristic technology, there is so much more to discover. From formulating self-executing digital contracts to storing medical data, blockchain does it all. There is no constraint to its germination, therefore, allowing it to be an exceptional technology to work with. The idea of blockchain is quite simple to grasp on the surface, but it might get more complicated as we get into it. The diverse uses of blockchain technology contribute to the difficulty in completely comprehending the vast subject.
What is Blockchain?
A blockchain is a digital ledger that stores data while eliminating the risk of manipulation. Information on the blockchain is shared with the whole network and verification takes place transparently. Data is not stored on a single location and therefore it is not vulnerable to hacking.
What are the benefits Blockchain provide?
Blockchain gives its users multiple advantages. It is called the new internet and rightly so for the following reasons:
A blockchain records all data that enters its network. Moreover, the data that is stored is immune to any type of alteration. This is a real plus point for individuals/companies who want to carry out ethical business and a great method to reduce fraudulent practices. Transactions are stored as they are with information that is neither omitted nor added unscrupulously.
Activities that take place on the blockchain are visible to all the involved participants. Transactions are verified by the network and only then will they be added to a block.
Data stored on a blockchain network is secured with high-end encryption. For this reason, users can without question store their sensitive data on the network. It is impossibly hard to hack data on a blockchain.
Blockchain runs without any third-party intervention. For users that require complete privacy, it is a great network to carry out highly secure transactions without the unnecessary involvement of agents and mediators.
Unlike traditional networks and exchange systems, blockchain can carry out transactions without any costs by eliminating middlemen. This appeals to investors and businesses worldwide.
In traditional transactions that do not employ blockchain technology, processes are time-consuming and expensive. Blockchain technology automates processes, thereby, creating faster transactions that do not require any third-party intervention.
These key characteristics of blockchain technology make it perfect for the majority of industries. The many issues of security and efficient data storage are solved with the employment of blockchain technology.
What is the impact of Blockchain?
The impact of blockchain in the financial sector was evident in the introduction of cryptocurrencies. Blockchain can completely eliminate the need for a reliable third-party in financial transactions. With the direct transfer system, digital assets can be transferred securely between users.
In the healthcare sector, one in dire need of faster processes and organized data storage, blockchain can work wonders. With a systematic database, patients can receive better and more efficient services.
The supply chain is one that requires extreme accountability because of all the processes and middlemen involved. With blockchain, the process of tracking products, solving issues, automating transactions is greatly simplified.
The solutions that blockchain provides each industry are enough reason to shift to a blockchain-powered system. Many industries are only now realizing the potential it has to completely transform their working. It won’t be too long before blockchain takes over the world, simplifying and speeding up processes to ensure a digital future for all.
This article is contributed by Riya Steve, Content Writer at Blockchain App Factory