We are
living in an era where everything is about technology. There is a great need to
enhance how humans conduct their day-to-day activities. As a result, everyone
is ready to accept new technologies. You can now control devices using a remote
and do voice commands, and now there is a new player in the game – blockchain
technology.
blockchain technology was introduced, various industries have been greatly
impacted, and cryptocurrency is one of the areas that has been positively
impacted by this technology. This is perhaps because the technology’s first
application was Bitcoin. Many of the various forms of digital currencies have
had great success, but few know that blockchain is behind the success.
Most people
tend to confuse Bitcoin and blockchain thinking that they are the same.
Blockchain technology does many things with creating cryptocurrencies being one
of them. We currently have several applications for businesses being developed
using blockchain technology.
What is blockchain technology?
blockchain is a technology that keeps transactional records while at the same
time making sure that the transactions are secure, transparent, and
decentralized. The records are stored in block forms and cannot be controlled
by any authority. It is quite hard to tamper with information that has already
been stored in the blockchain.
reasons why the cryptocurrency industry has been experiencing a great boom is
because of the security of the transactions. On top of that, there is a great
deal of privacy involved. This is all possible because of blockchain. More and
more people are moving to digital currency websites. Many sites like Nakitcoins website
have recorded a huge increase in the number of cryptocurrency traders.
Any
transaction that is carried out using blockchain technology is authenticated
with a digital signature. The high level of encryption used here makes data
tamperproof.
Features of blockchain technology
Blockchain
technology has been a standout ever since it was introduced. This is because of
the following distinct features:
No person or
authority can control the blockchain network by themself. While using the
network, you can have access to the distributed ledger but cannot make changes
to it. This means transparency in transactions is something that is already
guaranteed.
Using
blockchain, you can interact with another person through a peer-to-peer model
without the involvement of a third party. The protocol used in the blockchain
is so unique that all the users of that particular network hold the same copy
of transaction. This way, they can approve the transactions through a machine
consensus. You can carry out transactions from any part of the world within a
very short time.
This means
that any information that has been recorded in a blockchain network cannot be
changed or tampered with. As stated earlier, the data is stored in blocks. It’s
quite difficult to change the data in one block without changing the data in
another block, and this continues in chains. There is no way a person can make
changes to all of the blocks.
Also Read: Blockchain in Real Estate
How blockchain technology is applied in the world today
Bitcoin was
the first application of blockchain. Due to its success, many industries and
organizations have widely adopted it. Below are some of the ways it has been
applied.
In business,
there must be an exchange of either products or services. One business is
offering the product or service and another is paying for them. The terms and
conditions are usually in a contract form that has to be signed by both
parties. Paper contracts can be altered, leading to fraud. Blockchain offers a
solution in the form of smart contracts. Smart contracts are digital contracts
that are fulfilled when all of the conditions of the contract are met.
There have
been significant cases of fraud involving online transactions. These days,
everything has been digitalized to the extent that sending and receiving money
can be done online. You can just log into a service provider with a pin to
access the funds. However, it can be difficult guaranteeing that the person
accessing the money is the real owner. With blockchain, there is a way in which
a person doing an online transaction must prove his or her identity.
These are
some of the solutions that blockchain technology is bringing to businesses. The
technology has even more potential, and in the future, can be applied in many
other industries and sectors. Even governments are using this technology during
general elections.