Blockchain is a name that is very easily heard these days. People around us are using this terminology very frequently. Nowadays every financial discussion contains this term. It plays a very vital role in this era of cryptocurrencies such as Bitcoin. Cryptocurrencies have been the center of financial discussion for a very long time.
Although it has been a part of controversy related to its existence since the beginning. There were debates happening around the world that without any physical form how this thing can even survive.
So before heading forward, let’s stop for once and discuss what is actually Blockchain Technology?
What is Blockchain Technology?
In the simplest term, Blockchain is a digital record book system, which is used for recording information and makes it more secure and unchangeable. Yes, once data is entered in a blockchain, it cannot be altered or deleted. It is a totally decentralized ledger.
How Data Is Stored In The Blockchain?
The data can be stored in more than one place on a single network. It has two major points. That is distribution and security. These are the two strongest points of blockchain technology. It allows its user to not spend any other penny on the banking as a fee and it cannot be paid twice.
With the help of this technology, users can send money from one corner to another corner without paying any extra penny as a transaction fee and without any central clearing authority. This allows the user to store the money online, and have full control over it. It can also be used for various other tasks such as trade. Blockchain has changed the way in the digital world in terms of exchanging information and values.
History Of Blockchain Protocol
The first blockchain protocol was proposed by Cryptographer David Chaum. And very famous Mr. Satoshi Nakamoto, an anonymous person or group invented and implemented this idea and executed this network on the world’s first cryptocurrency Bitcoin.
The only thing which is running this Blockchain technology is nothing but technology. You read it correct, no one actually owns this technology and no one in this universe can claim that they own this whole technology themselves. Blockchain technology welcomes everyone and anyone from any place and they are free to use this technology as per their expertise.
You remember 90’s era, when the cell phones were introduced in the global market and everyone was talking about its survival. How will it run? How it is going to change the way of communication? You, remember it right? That same thing is happening with the crypto and blockchain technology. As per experts, Blockchain and crypto are the future.
The benefits of applying Blockchain Technology in any industry:
In today’s era of competition and digital threats many business geeks are thinking of applying the blockchain technology because of the security it provides. There are many reasons, which are forcing business person to think about the application of blockchain technology in their firm.
Let’s discuss about some reasons or benefits of applying a blockchain technology in any business or industry.
The first is already mentioned above that is, Security. Its privacy feature against the fraud and not allowing the other party to alter any kind of data, gives this technology an edge as comparison to others available in the market. It also provides end-to-end encrypted payments, which is enough in order to eliminate the fraud. All the data on the block chain are saved on a network of computers. And They are almost impossible to hack.
Another reason is, its Decentralization. It allows it user to share their data in their eco system and no particular person is in charge. This means they can easily share it without passing it to someone or by granting permission first. Decentralization allows user to be the boss of their own data.
We all know its importance in business, right? This technology enables the business parties to make transactions with a party, with whom they don’t have any direct connection but they have to make a payment or share a data. This means it helps them in trusting each other without knowing each other.
Blockchain technology helps an industry or business in reducing its costs as well. This technology eliminates the middle person or some third party, which ends up in saving extra pennies. It also reduces the manual works such as audit and aggregating.
Another reason for shifting from traditional technology to Blockchain technology is its speed. As we have already talked about eliminating the third party or the middle person, this elimination help in increasing its speed. As this technology, can do manual works such as aggregating and data auditing automatically, which makes it faster and helps in saving time. Now, you must be thinking about how fast this technology can clear a payment, so the answer this within a second.
Saving your firm from being hacked or being a victim of fraud is pretty big and hectic job and responsibility. Immutability of Blockchain technology makes this technology the most secure platform available in this world as of now. In the easiest term, once data entered in a blockchain cannot be edited or deleted. And all the ledger records are permanent. Which means no one can play with your data.
7. No Interference
It allows a user to control their data without any interference. This means if data belongs to you means you are the only one who can control it. You can decide with whom and how much data you want to share.
Many sectors such as financial institutions, nonprofit or government agencies, and healthcare sectors already started using blockchain. One of the biggest conglomerates such as Wal-Mart started using blockchain technology in order to reduce its risk and improve its traceability.