The 21st century is all about digitalization and technology. With the rising need for modernization in our daily lives, people are exploring new technologies. Blockchain technology has created a stir in the past few years. we will be learning about every aspect of Blockchain technology. We will deal with the role and importance of Blockchain technology in the future.
Blockchain technology provides a method to one internet user to transfer digital assets to another internet user, such that the transfer is sure to be safe and secure because every user knows that the transaction has taken place, and no one can challenge the correctness of the transfer.
Blockchain is the pillar technology behind the digital cryptocurrency Bitcoin. Blockchain provided the answer to digital currency and its secure transaction because it records data and information in a public space in the form of transactions that cannot be changed or remove from the chain once completed.
Blockchain is a platform where transactions are performed in the form of cryptocurrency. It can be defined as a continuously growing chain of blocks. Blockchain is a decentralized, distributed, and immutable database that records the derivation of digital assets. It allows users to reach consensus without trusting each other.
Everyone knows about cryptocurrency like bitcoin but hardly few people understand the role of the technology behind it. Blockchain technology made the cryptocurrency possible. The different features of Blockchain allow us to use it beyond the cryptocurrency. Most of the people often think that blockchain and bitcoin are the same, though they are not the same.
What is Blockchain?
Blockchain is a distributed and immutable database used to manage the transactions. It comprises a sequential collection of blocks or systems in which transactions made in cryptocurrency are maintained across different servers that are linked in a network. Furthermore, every Blockchain is a protocol that can automatically lookup and update the data on different nodes. So, it is certainly going to be a smart and productive invention.
Blockchain can be defined as a continuously growing chain of blocks, which is a decentralized, distributed, and immutable database that records the derivations of digital assets. Every user of the network can reach consensus without trusting each other.
It is the world’s most trusted compact cryptocurrency company. It connects the world with future products, including digital and crypto wallet, bitcoin explorer, and market information.
Need for Blockchain Technology
- Accountability: With blockchain when two or more people enter into a transaction, their digital identity is known and therefore they can easily transact without worrying about fraud. Also, since the data can’t be tampered all parties in the transaction don’t need to worry about details like amount, quantity, etc. Therefore, there could be greater accountability between parties.
- Security: Security is one of the major factors people fear when getting into a transaction whether monetary or other from another country. With blockchain technology, there is no single point where all data is stored as its decentralized and therefore it becomes fundamentally difficult for someone to hack into a system and access valuable systems like in centralized databases of banks and other financial institutions.
- Record Keeping: With blockchain its fundamental that all transactions happening peer to peer have a trace and are stored forever in the decentralized ledger database. Therefore, one need not worry of data being compromised or erased and is always available for analysis.
- Cost Reduction: Since the core idea behind blockchain technology eliminates middleman, there is greater efficiency in almost all transactions. Imagine sending money through blockchain in the form of a cryptocurrency from one country to another without the involvement of banks, Central banks, watchdogs, other institutions and various restrictions on usage, etc.
Applications of blockchain
- Banking: No other industry stands to gain from blockchain as much as the banking Industry. Without any time limitations which are usually implied by banks due to practical reasons, with incorporating blockchain they can process transactions after working hours and during holidays in a matter of seconds.
- Cryptocurrency: Cryptocurrency is fundamentally based on blockchain technology and various cryptocurrencies have come up over the last several years like bitcoin, Ethereum, Litecoin, etc. For every country like India, there is a central bank that issues its currencies and promises to earn the worth of the currencies it issues whoever holds it. However, what if the central banks were to fail, who shall fulfill that promise. It was out of this worry Cryptocurrency like bitcoin was formed where there is no need for a central bank to regulate the crypto and its value could be assigned by simple demand supply analysis through listing it in an exchange.
- Healthcare and Legal Uses: Any field where data is of utmost importance can use blockchain to store such data as then it cannot be tampered with and can be stored securely and forever. The healthcare industry can store vital patient information using blockchain whereas Lawyers can also store information about their legal proceedings and case findings.