Even though the term “Block Chain” is commonly thrown around, for many, blockchain technology is still a mysterious or even intimidating topic. Some remain sceptical that we’ll use this technology in the future. This scepticism that exists today is understandable because we’re still very early in the development and widespread adoption of blockchain technology.
Source: Built In
A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. This data is, like the name implies, structured into chunks (blocks) that are strung together making an irreversible timeline of data when implemented in a decentralized manner. Each block is given a time stamp when added to the chain.
Just like blockchain has many purposes, it also has many benefits such as:
- An organization can go for a complete decentralized network where there is no need for a centralized authority, improving the system’s transparency.
- Security is also enhanced by the fact that each node holds a copy of the transactions ever performed on the network.
- Blockchain networks are also immutable, which means the data, once written, cannot be reverted by any means. This is also the right choice for systems that thrive on immutable data, such as systems where citizens age.
- Organizations can bring down a lot of costs associated with 3rd party vendors. As blockchain has no inherited centralized player, there is no need to pay for any vendor costs. On top of that, there is less interaction needed when it comes to validating a transaction, further removing the need to spend money or time to do basic stuff.
- Since the supply chain becomes transparent, it enables every party to trace the goods and ensure that it is not being replaced or misused during the supply chain process.
- Blockchain technology enables organizations to use different levels of accessibility.
- Organizations can do faster transactions with the help of blockchain, and account reconciliation can be automated.
Bitcoin is the first successful implementation of blockchain. Today, the world has found applications of blockchain technology in several industries, where trust without the involvement of centralized authority is desired. Blockchain technology is revolutionary. It will make life simpler and safer, changing the way personal information is stored and how transactions for goods and services are made.
With many practical applications for the technology already being implemented and explored, blockchain is finally making a name for itself in no small part because of bitcoin and cryptocurrency. As a buzzword on the tongue of every investor in the nation, blockchain stands to make business and government operations more accurate, efficient, secure, and cheap, with fewer middlemen and the next few decades will prove to be an important period of growth for blockchain.