What Is Blockchain?
The blockchain is a pioneering technology that transforms the way organizations operate over the next decade. One of the main reasons for Blockchain to gain popularity is because it caters to diverse sectors like finance, healthcare, manufacturing, IT services and more.
This technology is revolutionary as it establishing a new level of trust, accountability, and transparency across all electronic transactions. Thus Blockchain could be said as an electronic ledger of transactions under perpetual maintenance and verification by the “blocks” of records. This ledger allows everyone to effortlessly, safely and securely transact without the interference of intermediaries.
Recent Trends In Blockchain
It was evident that 2017 was the year for cryptocurrencies. The value of digital currencies shot through the roof. Bitcoin had an astonishing growth from $1,000 in January to $16,000 in December. The value of Ethereum rose from $8 in January to roughly $900 in December and it’s more than $1,000 in January 2018. Other cryptocurrencies even saw a considerable increment of more than 1000%, some even up to 10000%.
With these major happenings in 2017 in the digital currency space, 2018 promises will be a crucial year for cryptocurrencies. While many financial experts are saying Bitcoin is a fizz, some connoisseurs claim that cryptocurrencies and the Blockchain will change the perception about the financial sector.
Blockchain Applications That Are Shaping The Economy
Shaping and Transacting Practical Digital Resources
The blockchain is a technology to exchange assets through its applications like bitcoin, Ethereum, and others. It is a novel and highly secure network that enables shaping, managing, and transportation of digital assets. The delays due to intermediaries in transactions for verifying viability could be avoided.
Blockchain technology mostly hosts tokenization, which is mostly linked with crypto-currency. This is a tradable commodity in exchange markets. Although it is not a mandatory requirement, the creation of a liquid marketplace is an outcome of successful Blockchains.
While accessing services through Blockchain, you are creating new value. An example might be the development of decentralized marketplaces over a peer-to-peer protocol. Give it a thought! A new class of applications that offers an increased interactivity and approachable user interfaces as underlying services.
Cloud Computing Security
The development in Blockchain technology have solutions to some of the vital issues like performance and security in distributed systems. Blockchain’s transparent, distributed ledger capability has numerous benefits towards cloud computing. It also offers secure data provenance, auditing, management of digital assets, and distributed consensus.
Impact Of The Blockchain
Budding innovative, digitalized business models are overtaking the traditional financial services. Banking and other financial establishments are realizing the importance of staying in accordance with digital era— be it adapting, affiliating or developing cutting-edge technologies.
The Blockchain is the perfect solution for financial organizations to keep themselves ahead of the lot. With this technology, the information regarding transactions is transparent and digitally shareable over the cloud. There is no question of central authority acting as the middleman. This lack of central authority is the very feature that is allowing the Blockchain to replace the centralized business models of the financial services industry.
Advantages Of Blockchain In Financial Sector
The novice Blockchain technology will transform the shape of financial operations. It is the impetus for the internet-based cryptocurrency, Bitcoin. The applications of Blockchain are not only Bitcoin or other cryptocurrencies. The territory is vast and some of the well-known financial institutions are keen to know the impact of Blockchain technology for their business. Some of the key benefits of Blockchain in the financial sector are as follows:
- Electronic ledgers are economical to maintain, unlike traditional accounting systems.
- The Blockchain’s safety and confidentiality etiquettes employ “cryptographic hash function”. The intricacy of the crypto hash function minimizes the vulnerability to fraud.
- With Blockchain it is possible to accurately track customer repayment histories across borders and banks; thus, reducing the risk of defaulters.
- Private Blockchains solves the operational consistency issues.
- Blockchain simplifies the transaction accessibility, unlike its public substitutes.
- Blockchain enables irrevocable and easily traceable transactions. This eliminates the possibility of transaction modification and cancellation.
Future of Blockchain Technology
A substantial disruption is already happening in the financial industry like the decentralization of financial transactions. Blockchain technology provides the opportunity to establish flexible and secure businesses and financial operations. Companies with Blockchain technology will succeed in creating products and services that instill trust in its consumers.
The potential applications of Blockchain technology are almost limitless. This technology is capable to reform the economy that is being run today. The world will witness a massive swing in the way the finance is addressed and accessed. The digital transaction platform with smart digital currencies, that has a supreme level of transparency and accuracy will do it all.