As per the statistical survey, the expenditure on blockchain solutions is forecasted to be over US $18 billion by the year 2024.
Even after the covid-19 outbreak and global economic crisis, its growth has still managed to surge over 50% than the previous year of 2019.
In this blog, we shall have a detailed look over how blockchain solutions have brought a dramatic revolution in the field of technology and the rapid waves of changes it brings into our society.
But before we get into the nitty-gritty of it, let’s understand the answers to the most common questions of every blockchain beginner:
What is Blockchain?
Blockchain is described as a collection of records or transactions linked with each other (based on previous transactions) that is strongly immutable and protected by a cryptographic hashing algorithm.
Basically, one can complete a safe and secure transaction to the recipient without the involvement of a bank, online wallets, or third-party applications. The record of these transactions is permanently inscribed in a block, and such other kinds of blocks together combined to form a distributed ledger — Blockchain.
What is Bitcoin?
Bitcoin is the most popular and the very first digital cryptocurrency that works on peer-peer-based technology to make instant transactions. This decentralized method of payment is independent of any government authorities or banks. They have a fixed asset value and cannot be encashed like traditional money. To sum up, Bitcoins are valued globally and are traded on a distributed network of computers based on consensus protocols.
Now that we have a brief idea about Blockchain and the primary digital currency, let’s dive deep into understanding the implications of Blockchain as the biggest breakthrough in the era of technology and make the biggest move into society.
How Does Bitcoin Work?
Unlike fiat money, Bitcoin cannot be encashed. It is a computer-generated virtual currency that is transferred across the network of participants. However, the rigorous surge in the value of Bitcoin has much more impact than being a virtual currency itself. Nowadays, people buy and sell cryptocurrencies on various platforms and trade them as a type of investment.
In order to get your system rewarded with a Bitcoin, the computer is made to solve a complex set of mathematical problems. Similarly, other computers are working in competition to solve the problem. The most powerful computer system that comes to the solution at the earliest, gets rewarded with one Bitcoin. Occasionally, the owner of the system collects more of such Bitcoins. This entire process is known as Bitcoin mining.
Why Blockchain Technology is Becoming Popular?
The introduction of blockchain development services eliminates the loopholes of the existing technologies and online processes of computer-based systems. Let us dig deep into the following key characteristics of Blockchain technology that make it so popular and irresistible.
Apart from being a distributed ledger, every block in the network is stored with a cryptographic hashing key algorithm. This cryptographic layer adds an extra layer of security to the decentralized system making the ledger very much complex to alter.
Blockchain eradicates the involvement of centralized authority, government bodies, or a middleman community in the distributed network of nodes. Every node holds the same copy of the data in the ledger. Hence, the entire system is monitored as a participants’ network which cannot be altered by any means. If someone in the network tries to corrupt the data, the other nodes in the networks validate the information with the majority of members. Overall, it offers a trustless environment and optimizes the distribution of resources.
Impossible to Hack
As there are millions of node participants handling the exact copy of the ledger in the distributed network of blockchain, it makes it impossible for a snooper to intrude into the system or hack it. If one wants to corrupt the information, he/she has to access and alter the data of all the computers in the chain, making it next to impossible to be hacked!
Another exciting aspect of Blockchain is immutability. To record every transaction in the ledger, the participants validate the information and if it is approved among the majority members then itself it is expanded as a new transaction block into the system. This piece of information in the block is permanently stored and secured that cannot be altered or reversed. The immutability feature promotes transparency and removes the dependency on central authorities to manage the massive amount of data.
Smart Contracts Consensus
Smart contracts are typically a line of protocols that are designed especially for blockchain architecture. Consensus algorithms help the network make better decisions based on predefined terms and conditions. It helps businesses to collaborate and enforce an agreement to anticipate a certain outcome without the involvement of any intermediaries.
Blockchain offers real-time settlement compared to traditional finance sectors or banking systems. The removal of intermediaries saves verification time and is less likely to break down or transaction failures. Once authorized, the transactions are automatically executed across the network and shared among the node participants.
How Does Blockchain Technology Impact Our Society and Different Industry Operations?
Blockchain development services have brought quite a shift into society with its positive impact, advantages, and decentralizing away from the government administration. Now that the system is majorly dependent on user control, it ensures great restaurants over the identification of people and information security.
Instead of relying on the banking system with a lot of personal information and transaction processing, people find it effective to build their own profile in a trustless environment of Distributed Ledger Technology (DLT). On the other end, the financial industry can make dramatic cost savings of $12bn to 18bn annually, with the implications of Blockchain technology.
Industry Verticals Using Blockchain- The Beginning of the Revolution
Supply Chain Market- Blockchain technology is a blessing to track the supply for effective administration, easy traceability, and most transparency. The immutable records of merchandise information including date, time, pricing, location, certification of quality, and material description authenticate the supply source and validate product authenticity.
DeFI Services- Decentralized Finance is shortly termed as DeFi. As discussed above, decentralized finance moves away from the centralized system (eg. banks ) and employs smart contract solutions to enable the functioning of financial transactions like investing, trading, and payments. The digitization of financial records across distributed networks offers enhanced privacy, transparency, agile processes, cost-efficiency, and high-performance.
Healthcare Industry- For the Healthcare sector, the medical information of the patients is secured in a permissioned network of blockchain. The decentralized application offers a secure mechanism to store the entire medical history of the patient and accesses it using the verified blockchain-ID. Blockchain turns to be an innovation for the healthcare industry and the process of consulting patients.
Government Councils and PSU- The government is strongly looking forward to implementing blockchain technology to set the projects on auto-pilot mode (automate daily operations). Using the distributed ledger, the Government is modernizing towards an agile, secure, and effective ecosystem compared to the traditionally isolated and centralized system.
After a detailed sigh on the conception of Blockchain and the revolutionary impacts across the world, it cannot be denied the Blockchain has a promising future!
Perhaps the word ‘Bitcoin’ has played quite a huge role in making it a household name. However, it is just the beginning of a great revolution in technology and financial instruments. Learn more about what do the top billionaires feel about it.
Originally posted 2021-04-06 16:52:55. Republished by Blog Post Promoter