Blockchain is a very new method of recording information that is very difficult to bypass and cheat. With the blockchain technology, it becomes increasingly difficult to hack into a system to get transactional data.
It is rightly said that Blockchain technology is one of the most popular additions to the Distributed Ledger Technology (DLT). A blockchain is a digital ledger that stores transactional information for the public, and this information can be available across computer networks to relevant participants.
All in all, Blockchain technology might prove to be one of the best inventions in the field of technology, and it ensures that the kind of data that is available to the public is safe, reliable, and authentic.
In Blockchain Technology, a chain contains many blocks, and each of these blocks is composed of many transactions. Whenever a new transaction is done, it is recorded and notified to every participant of that particular blockchain or Distributed ledger.
The best part of Blockchain technology is that it has built trust among the general users, and it can be managed by the users themselves, not requiring any outside interference. Several instances of Distributed Ledger Technology has been noticed in the recent past, such as the Bitcoin and Blockchain technology.
But among them all, Blockchain has proved to be the choice of the digital ledger by many. Blockchain has become increasingly popular in recent years, given the fact that the crimes fraudulent related to money has increased considerably.
Features or benefits of DLT
There are several reasons by Blockchain has proved to be a better and safer mode of transaction world-over. Some of the reasons are:
- A blockchain can be programmed, and hence curated features can be available for each individual.
- In terms of security, blockchain has a strong security protocol of its kind.
- It does not reveal the identity of the participants of a ledger.
- All the participants can see the ledger at the same time.
- All participants agree to the validity of the transactions in the ledger.
- The records cannot be changed at any time.
- Each transaction has a time-stamp that makes it easier for each participant to refer to it in a better way.
Attempts to digital money have failed almost every time people tried to create it, and the most popular reason for the failure is trust issues. The best thing that made Blockchain what it is today is the transparency in the transactions. Unlike SQL and other databases where a person is in charge of tracking all transactions made in a ledger, in Blockchain, the participants of a ledger take the responsibility of maintaining the ledger and track the entries made in it.
Blockchain has moderate utilization in the world market at present, and its impact is expected to increase in the coming years. Some of the areas where blockchain will be incorporated or can have an increased impact in the future can be summarized as follows:
1. Blockchain as a universal identification system
Blockchain technology is known to make a centralized tracking system for individual information and stores the data for further use. In the future, it will also ensure that the information stored can be verified using a consensus mechanism. As a result, the security of the data stored and the chances of a data breach can be reduced considerably.
It will enable the idea of self-sovereignty and ensure that the data collected at each stage is authentic and reliable. These data are now used in terms of government records, credit score and credit histories, medical and health records, tax proofs and tax records, certification of qualifications, employment records, and a lot more. It could further be utilized for similar purposes worldwide, making blockchain a centralized identity medium.
2. Blockchain as Government’s Cryptocurrency
The governments of various countries have tried to digitalize money at different stages. However, all of their attempts have failed in the past. Soon the government-based cryptocurrency technique will open up a huge scope of experimentation in the developing countries.
The development of blockchain in the future would see several small to big consultancies rising to the occasion. The advent of crypto will take care of many limitations of currencies these days, such as scalability, reliability, interoperability, and the like.
3. The world will trade using Blockchain technology
Blockchain is expected to have a significant effect on the world’s supply chain management. It is capable of getting rid of all kinds of unreliable sources of data and transactions. Many supply-chain related issues are either unsolved or only partially solved now, can be taken care of completely by the blockchain technology as it would make things simpler and organized.
Some of the supply chain issues that can be taken care of are the adulterated food products, counterfeit medication, counterfeit electronic goods, and the list continues. With blockchain as each transaction would be recorded, and there would be a timestamp for each transaction, it would be easier to keep track of each transaction by individuals in the ledger.
4. No dependence on centralized institutions
With blockchain technology, the dependency on centralized institutions and banks would reduce to a considerable extent. Reduction in the dependence would ensure that a lot of issues related to man-management can be taken care of.
It can be used to reduce corruption by increasing transparency of transactions, increase the inclusiveness of our society, and promote access to value-creating assets. It is expected to show a huge financial impact in the days to come.
5. Companies will be known by their assets in terms of crypto currencies using Blockchain
If blockchain becomes the technology that is used by one-and-all for transactions, companies that are known by the amount they own will be known by the Blockchain. For example, billion-dollar tokens will replace billion-dollar firms. A firm will be represented by a token in the distributed ledger. Each participant of the ledger will know the firm with the help of that token.
A secure data storage and means of transaction
There are several reasons why the blockchain technology will be a huge boom in the days to come. The transparency of the data and the process in which it is available to each individual makes it very secure. Blockchain ensures that the identity of each stakeholder on a block is not known to the other. Keeping it anonymous ensures that the chances of a data breach are reduced considerably.
All in all, Blockchain technology might prove to be one of the best inventions in the field of technology, and it ensures that the kind of data that is available to the public is safe, reliable, and authentic. Each participant can view the data available on a ledger at any time makes it a very effective method of transacting.
Where blockchain technology would take us, or where it is headed at in the future, is yet to be known for sure. However, some of the probable routes in which it can impact the worldly ongoing can be listed as above.