What Is Blockchain?
Here is a ground-breaking technology that has a positive influence on the global economy. This technology eventually will turn the way the organizations operate over the next decade. It’s none other than the Blockchain technology. One of the prime reasons for Blockchain to be said as pioneering technology is because it caters all sectors from finance to healthcare to manufacturing to IT services and more. It’s amongst the trending technologies that are the backbone of multiple digital currencies.
Blockchain technology is said to be the revolutionary idea during the computer engineering generation. This technology establishes a new level of trust, accountability, and transparency in any kind of electronic transaction. The Blockchain definition- It is an electronic ledger of transactions that are under persistent maintenance and verification by the “blocks” of records. This ledger allows everyone to effortlessly, safely and securely transact and it is achieved by not entertaining the intermediaries.
Recent Trends In Blockchain
It was evident that 2017 was the year of 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 close to $900 in December and is now more than $1,000 in January 2018. Other cryptocurrencies had an increment of more than 1000%, some even up by 10000%.
With these major happenings in 2017 in the digital currency space, 2018 promises to 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 towards money and operation of the financial sector.
Blockchain Applications That Are Shaping The Economy
Shaping and Transacting Practical Digital Resources
The blockchain is a technology for the exchange assets through its applications like bitcoin, Ethereum,…etc. Blockchain technology, the new-age highly secure network enables shaping, managing, and transportation of digital assets. It eliminates delays that occur due to intermediaries amid transactions by verifying their viability.
Blockchain technology mostly houses tokenization, which is always said together 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 on the Blockchain, you are creating new value. An example might be the development of decentralized marketplaces based on 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, Blockchain does it all.
Cloud Computing Security
The development in Blockchain technology have solutions to some of the vital issues with regards to performance and security in distributed systems. Blockchain’s transparent, distributed ledger capability has delivered numerous benefits towards cloud computing. Blockchain delivers assured 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 remaining worthwhile in this digital era— be it by adapting, affiliating or developing cutting-edge technologies.
The Blockchain is the perfect solution for financial organizations to keep themselves ahead of the curve. 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 current centralized business model of the financial services industry.
Advantages Of Blockchain In Financial Sector
The emerging Blockchain technology will transform the path of execution of financial services. The blockchain is the impetus behind the internet-based cryptocurrency, Bitcoin. The applications of Blockchain are not for 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 the decentralized, distributed ledgers in the financial sector:
- Electronic ledgers are economical to maintain, unlike traditional accounting systems.
- The Blockchain safety and confidentiality etiquettes employ “cryptographic hash function”. The intricacy of the crypto hash function minimizes the Blockchain’s vulnerability to fraud.
- With Blockchain it is possible 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.
- With 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 which is the decentralization of financial transactions. Blockchain technology provides the opportunity to establish flexible and secure businesses and operations. Companies will succeed in deploying Blockchain technology to create products and services that instill trust in its consumers. The demand for Blockchain-based services is increasing as the technology is maturing and evolving at a rapid pace.
The potential applications of Blockchain technology are almost limitless. This technology holds the potential to reform how the economy 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.