Blockchain: A Digital Revolution
The digital revolution in any form is a step forward to make the world a better place to live in. It all started in 1960’s with the development of technology from manual and analog to a digitalized platform. The most remarkable impact is ‘globalization’ which has led to effective and efficient business productivity. Later when Internet evolved, it was a disruptive, game-changing force for many industries.
One such invention is the ‘Blockchain’ technology. Invented by a group of engineers in 2008, this digital revolution is not a widely known term. This article explores the Blockchain technology deep within along with knowing some of its uniqueness and features. In addition, you also get to know how the Blockchain wave is the frontrunner in today’s digital world.
Understanding the term:
In a very simplest way, Blockchain is a record book for multiple forms of virtual currencies that circulate in digital transactions. It combines the security of cryptography, stores and transmits the data in a coded form in a ‘peer-to-peer’ network to create a shared database.
The block represents the present and ongoing transactions. Every transaction connects to the one before and the one after it, leading to a traceable history of every record. Once a transaction is complete, it’s linked to the chain making it a permanent entity, which neither you can delete or alter.
The USP of Blockchain is that anything important can be stored digitally, without needing an equivalent in the real world. This electronic mode of transaction is widely trusted, as everyone in the network has an access to an up-to-date version of the record, keeping the data safe and transparent.
Decentralization: The association of multiple computers connected to the same network creates a new chain. Being an ‘open-source’ model, there is no central authority or a single party which monitors or authorizes any changes in the chain.
No intermediary: In the current framework, a P2P transaction is not possible without the assistance of 3rd parties like banks or financial agents. Blockchain technology can revolutionize the process by removing all the ‘assistance’ and making it as easy as sending an e-mail. It saves time and the ‘extra’ service charges which you incur while processing payments. It will be a seismic change to the way the world currently operates.
Reliable and Robust Database: The creation of records is in a chronological and sequential manner. Moreover, following the highest standards of encryption, you can’t get the details or the origin of a transaction in terms of name, identity or address of a person.
Every transaction has a unique digital ID, which makes it reliable for the parties involved.
Transparency: Since the creation of a new block and for the rest of the period, all parties can view the block. A public log creates with every transaction which is permanent in nature. This minimizes any scope of fraudulent activity. Rigging a particular block is not possible as you require correcting the previous block too. The decentralized pattern creates more transparency in transactions.
User-friendly: Blockchain saves your time and energy by full access and control of your digital transactions. You can set up your digital wallets within the comforts of your home. Filling up forms, or visiting financial institutions are becoming a thing of the past.
New wave Of Digital Revolution:
New technologies offer great potential in various sectors, but they must adopt the process in a balanced way. The Blockchain is clearly a way of future development. The possibilities of applying this technology to other industries such as healthcare, retail, or real estate have opened great expectations about its use.
The Blockchain is a mechanism, which is safe and transparent to carry out operations between two regions and even countries. At the bigger picture, it can assist governments to collect taxes, deliver benefits, issue passports and ensure the integrity of official records and services.
Basically, this technology is a step forward to eliminate the traditional way of storing records.
Blockchain has the power to enhance entrepreneurship among developed and developing countries by removing the barriers built from embedded bureaucracy and corruption. Now, you have the ability to secure your online privacy by storing your digital footprints and also control the access to it. It will be easier and convenient to fight crime and counterfeiting as every transaction can be independently verified and traced. Apart from financial services, Blockchain is useful in the below areas of work, which will ultimately transform the future:
-Digital identity and authorization
-Supply chain management
The Challenges ahead:
Even though Blockchain has the potential to take digital technology to next level, there are few hiccups initially. Some of the major issues related to this technology are below:
New technology: Blockchain is still in the progression stages.
There is still a lot of scope for invention and innovation. People need to be educated about the usage in the respective sectors where this technology can do wonders. It will take some time before people shift their focus towards a decentralized technology which is robust and secured.
Regulatory system: There are some countries in the world where this technology is not in use or not even known by many. The Government has to promote this innovative and secured platform among the citizens. A regulatory system has to be in place which monitors the progress and help the government in changing the existing structure.
Security issues: Even though Blockchain technology ensures secure and transparent transactions, in order to make it successful among the people, business houses or at government institutions, issues related to security, privacy, encryption details and personal data have to be more secure and stable.
The 21st century is thriving on the internet and digital revolution, in which Blockchain will play a vital role. It will revolutionize economic transactions; however, it will not change the economy. To simplify things, Blockchain magnifies your capacity and makes the existing standard procedures more efficient. This technology will be a game changer, but it will require all the constituents in the network to participate and agree on the basic principles of the idea.
Source: Linkedin post from Varun Shah