Blockchain Technology-The New Age of Trusted Digital Transactions!
- January 22, 2016
- Posted by: digital
- Category: Blockchain Technology
Blockchain technology appears to bring an exciting future for technology enthusiasts. However, most of the people consider it as a technology behind Bitcoin, but blockchain’s uses are far beyond digital currencies. With its advent, the banks and insurers are in race of being the first to work out on how to use the technology to grow their business.Madrid Software Trainings in association with industry experts provides complete practical Blockchain Training in Delhi.
Let’s understand what exactly the role of blockchain is and why it adds excitement to the people!
What is Blockchain Technology?
In the present time, many people are taking help of a reliable middleman like bank for making a transaction. But blockchain enables consumers as well as suppliers to connect directly, denying the requirement of a third party.
By using cryptography to make exchanges secure, Blockchain offers a decentralized database of transactions that anyone can see on the network. It is essentially a chain of computers that everyone should approve before the verification takes place and later it is recorded.
The Revolutionary it brings!
As far as Bitcoin is concerned, blockchain stores and keeps all the details of every transaction of the digital currency sure. The technology also stops the same Bitcoin being spent more than one time. The earlier way of digital currency know as a cryptocurrency which was designed to work as a medium of exchange will now be benefitted with it. It was using cryptography to keep its transactions safe and secure and to control the creation of extra units and to verify and record the transfer of assets.
This advanced technology is very useful and can work for almost every kind of transaction that involves value, money, property and goods. When it comes to its potential uses, they are limitless. It helps in collecting taxes, eases off migrants to send money back to their family in countries and make banking hassle free for them.
Blockchain is also helpful in reducing fraud because each transaction would be timely recorded and distributed on a public ledger so that anyone can see.
Who Can Use it?
If blockchain goes mainstream, anyone having an internet access would be able to use it to make transactions. According to a survey conducted by the World Economic Forum’s Global Agenda Council, only a small part of global GDP around $20 billion is held in the blockchain.
But it will grow significantly in the next decade as suggested by the Forum’s research. Banks, tech firms and insurers take this technology as a way to speed up their settlements and reduce costs which is a good sign for aspiring businesses.
The major companies racing to adapt blockchain include big names like Microsoft, UBS, IBM and PwC. The Bank of Canada is also in the queue to experiment with the technology. The venture capitalists of Silicon Valley also queue up to back it.
The Potential Uses of Blockchain!
As a technology enthusiast, you may see the blockchain potential more than others are able to see. But you might not realize that this technology can change life drastically. The technology behind digital currencies like Bitcoin has come into picture with a strong foothold. It represents no less than the second generation of internet which holds enormous potential to transform business, money, society and government.
The Internet today also connects millions of people from the different corners of the world. It is a great way to communicate and collaborate online. Because it is built for the purpose of moving and storing information and no value, it has brought some changes in how we do business. When you pass on someone information like an email, JPG, PPT or PDF, you send a copy and not the original. Based on the rights granted to its recipients, they may be able to print a copy of the files.
But it is always recommended to avoid printing. So with the internet world, we need to bank upon the powerful intermediaries to build trust. Governments, banks and social media companies like Facebook work hard to establish identity as well as the ownership of assets. They further help us change and transfer value and then settle transactions.
They use centralized servers, which are associated with the risk of being hacked. They also take a fee for their services for example 10 percent to send money around the world. They also capture our data, not only stopping us from monetizing it, but also undermining our privacy. Sometimes, they are unreliable and slow. They also exclude two billion people who do not possess enough money to have a bank account. In total, they capture a lopsided part of the advantages of the digital economy.
Now let’s enter the world of blockchain, which is considered as the first native digital medium that ensures peer to peer value exchange. Its protocol strictly establishes the rules that are practiced in the form of globally distributed computations as well as heavy duty encryption. It further ensures the integrity of the data which is traded among billions of devices without searching for a trusted third party. Trust is carefully hard-coded into the platform. That is the reason why it is known as a Trust Protocol. It acts as a database, a ledger of accounts, a notary, a sentry and all by consensus. Every business, organization, institution, government, and individual can benefit in countless ways. The blockchain is already being welcomed in the financial services industry.
Using the blockchain, we can always go from redistributing wealth to distributing value as well as opportunity in the first place. It includes billions of people in the global accompany that protect rights through immutable recodes like land titles that create true sharing encomia by replacing service aggregators like Uber along with distributed applications on a blockchain. It enables small organizations to have all the capabilities of large companies and it assists them building a reliable government through transparency, smart contracts and refined models of democracy.
It won’t be wrong to say that the blockchain technology has taken an edge over the internet. The great potential and hosts of benefits it offers is surely to be accepted with open arms by big businesses around the world. In a nutshell, Blockchain is the new wave of internet that brings along hope of faster, secure business for entrepreneurs and startup businesses alike.