What is Blockchain Technology?
If you are someone who is accustomed to following the banking, investing and cryptocurrency over the last decade, you might have at least once heard the term ‘blockchain’.
While definition wise, blockchain is defined as a decentralised, distributed, public ledger; it is far easier to comprehend that it is showcased. The blockchain in a more literal way can be understood as pieces of information that are scattered digitally. And that is what provides blockchain with the leverage over any other digital technologies.
Blockchain as the Potentially Future
While blockchain is mostly known due to its facilitation over the rise of cryptocurrency, there are several other ways in which we can use the same technology. People throughout the world has just started to realise the true potential of blockchain, and here is a list of the few ways in which it can prove to be a better future:
1) Quicker Cross Border Payment
When it comes to traditional payment options, especially for international borders, they are either expensive or slow. This, in turn, creates hindrance for both the parties, as the transaction takes place between multiple currencies with the involvement of more than one bank and location. While existing services ca facilitate the same process in a much faster way, they tend to be expensive than the usual.
This is where the blockchain technology comes into play. Blockchain provides not only a faster way but also a cheaper alternative to that of traditional payment gateways. While the commission can go as high as 20% of the payment, blockchain the reduce that to almost 2%.
2) Identity Management
With the world moving towards digitalisation, there is hardly any security when it comes to identity. While great influencers and organisations might sell such as a better understanding of the public demand and that no private data is ever compromised, we all know what goes around under the hood. Blockchain technology has the tremendous potential to secure online identity.
While offering a high level of security, it also prevents identity theft for their users. With the blockchain network, highly diversified, even a simple verification process goes through several members of the computer network. This can potentially hide your identity, especially when it comes to online transactions.
3) Smart Contacts
One of the most highly anticipated applications of blockchain is probably a smart contract. Just think about the possibilities that could be achieved with having an agreement between two parties without the need for a central authority or legal system.
With a smart contract, all the terms and conditions between the buyer and seller are written directly into the line of codes. Along with that, the contract itself is distributed in a decentralised blockchain network.
At this point in time, blockchain is just a budding technology, which holds a huge case scenario in the near future. The above-mentioned uses are just a few of the recent implementation of blockchain. Several other opportunities are being explored right at this very moment. Before wrapping up, it is very important to understand blockchain and how it can change our perception when it comes to business and investment.