In the recent time, you may have heard the term “blockchain” technology a lot of times.
You also might be getting a lot of questions in your mind like what is blockchain technology? What this technology is all about? How to use blockchain technology in different businesses?
Unquestionably, blockchain is an ingenious invention that is mostly known as the backbone technology of Bitcoin. It is one of the hottest technologies, and since 2013, the search for the term “blockchain” have risen 1900%. So, you can imagine the curiosity that most of the people have about this technology.
With the extreme power to disrupt the multiple industries, Blockchain is one such technology that makes the process more secure, transparent, effective, and democratic. Today, various businesses, startup companies, governments, entrepreneurs, and investors have realized the true value of blockchain that is considered as a revolutionary technology.
What is Blockchain Technology in Simple Words?
In simple words, blockchain technology is an unspecified online ledger, which makes use of data structure to ease the way we are transacting currently. With this technology, it becomes easy for users to manipulate the ledger in a more secure and safest way without the help of any third-party.
At the heart of bitcoin and other virtual currencies, blockchain is an openly distributed ledger, which can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can be programmed to trigger transactions automatically. All the transactions with valid funds and recipients go into a new block that is time stamped.
To make sure about the security, parties need to solve the puzzle before they can access data in the record. The concerned parties can enter transactions in a chronological order. The entire chain comprises records of every transaction that executed concerning the underlying asset. This type of information can be utilized to track all the transactions.
Some Top Benefits of Blockchain Technology
The distributed ledger architecture of blockchain will make the entire process democratic and it will eliminate the need to have an enforcer of trust in the ecosystem. In this, two parties can easily make an exchange without a third-party intermediary such as governments, legal systems, and administrative bodies.
It is not going to empower users only to control of their information, but it will also bring integrity since transactions are executed as the protocol commands.
Affordable and Ecosystem Simplification –
One of the main benefits of this high-end technology is that it will decrease transaction costs by reducing the need to have a third-party intermediary in order to validate exchange of assets for a transaction fee. In this, all the transactions will be added to a single public ledger, thus decreasing the impairment and mess involved with multiple ledgers.
Safe & Secure
As you know that all the applications have some major problems like security, zero downtime, scaling. As all the data are handled securely by a single server. In case, if the server is hacked all the secure data will be obtainable in torrents.
With blockchain technology, you will get this kind of security and all the transactions are validated by thousands of people across the world. They are known as miners, who will get your transactions and process it, and you can’t fake any data or transaction. Here, the transaction is money and any digital asset.
Straight and Transparent
The blockchain network exists in a state of consensus that is automatically checked in with itself in every ten minutes. It is one kind of self-auditing ecosystem of a digital value, the network settles every transaction, which occurs in ten minutes intervals. Every single group of these transactions is called block and there are two important properties that result from this:
- Transparency – In this, the whole data is embedded within the network, by definition it is public.
- It can’t be corrupted – changing any kind of unit information on the blockchain technology mean using a huge amount of computing power to override the whole network.
Easier Access to the Market & Faster Transactions
All the people can have the access to the blockchain technology, and thus, the entry barriers will be less and the market will become more competitive. Moreover, the parties can develop direct communication without the need of intermediaries and the overall chain will become lighter.
Along with this, the interbank transactions are usually taking days for clearing and final settlement, so blockchain technology transactions can decrease transaction times into minutes and can be processed within just 24/7.
With its potential to revolutionize the global economy, the blockchain technology can mean emerging investment not only for venture capitalists but also for banks, global organizations, information technology companies and more in the upcoming years.
No matter whether you belong to finance industry, healthcare industry or any other industry, Blockchain technology has the power to impact hugely on varied industries.You can have your own blockchain application that secures the way you transact, share information, and run a business.