Blockchain is a promising technology that changes the perception of security and trust to whole new level. It records continuously growing list of records or you can say its a digital ledger also known as blocks which are linked and secured with cryptography. It made its hype when Santoshi Nakamoto, an unknown person or group, introduced new monetary system Bitcoin. It was originally an idea of 1991 by Stuart Haber and W. Scott Stornetta.
How can it bring change in real world?
In every sector of economics we need agents or brokers. Why? Because despite of how developed our systems are we, homo sapiens, always have been untrustworthy. We need a middlemen to make sure unknown are trustworthy. In sensitive cases like monetary transactions its even difficult to trust. If people were honest and pure world would be a different place but no its not. Anyways we are going to look at how Blockchain can change the trust network we people have and how can it bring change. Some features of Blockchain that can bring change are:
Decentralization and Transparency in system
Blockchain technology has a core concept of decentralization which is the most beneficial part because there is not need of third party or intermediary to validate transactions. It has a consensus mechanism to validate transaction. It records all data in a large ledger distributed among all network publicly maintaining anonymity of user. And thus creates a transparent result. Public verification allows anyone to verify and correct system working.
Immutability and Highly Secure Data
A third party/hackers cannot make change to the system once its written in Blockchain. Its extremely difficult to chance it back because Blockchain is highly secured with cryptography. Its not truly immutable but once written changing back could take the fastest super computer on earth a billion years to change it back. So, its wise to say once its there its there forever.
Cost Saving and Quality Assurance
There is no third party involved which means this can massively decrease the overhead cost. If an irregularity is detected in supply chain it can lead you to point of origin which makes easy for businesses to carry out investigation and execute necessary actions.
Innovation with increased efficiency
Improved track records, better security can lead to completely new business models can then provide company a new competitive advantages. Which can help in innovation rather than focusing on past.
Industries that are disrupted by Blockchain
All industries are facing disruptions because of Blockchain and various other technology and pressure to adapt has never been greater. Blockchain is estimated to disrupt many industries in coming 5 to 10 years and there are some industries that are already disrupting. Some of them are:
Blockchain democratize money. International Monetary Transactions are time consuming and third party costs are higher. Blockchain can disrupt with digital currencies introduced because its cost efficient. Payments can be done easily being anonymous. Citi Bank, UBS, Barclays, Goldman Sachs, Standard Chartered etc are some banks that has started looking Blockchain alternatives.
Fans can directly pay to the content creator without third party involved. No content is pirated more than music. With introduction of smart contract in Blockchain owner can create and sell more efficiently without being sucked up by record labels.
Healthcare systems are one of the disrupted industry by hackers stealing data and making it vulnerable. System holding records needs large centralized systems which can cost high and security risk also increases but with Blockchain it becomes easy. System is decentralized and records are available everywhere without any security risks.
Other industries like Forecasting systems, Charity, Energy Management, Real State, Crowd funding, Supply chain management are also being disrupted.
There are issues found and to be found. But if applied properly Blockchain can be a game changer. Its an inexpensive way to transfer values. A person with internet access can use it where there is data and transaction are involved. Blockchain can be very beneficial. It holds a vast promise to coming future. This is why you should care.
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