Impacting every human’s existence, the flow of money is where the upgrades are required utmost! Hindering the flow of money in a positive sense, blockchain is revolutionizing technology, opening an abundance of opportunities. The true revolution lies in its working, allowing applications like cryptocurrencies and supply chain management to flourish.
It’s been a decade since the first application of blockchain cryptocurrencies was established. Yet, many individuals remain clueless about blockchain’s inner functioning. Let’s change that for you in this blog. Without taking any more time, let’s straightforwardly debunk the workings of blockchain:
Base Concept Behind Block Chain
In simpler terms, Blockchain facilitates secure and decentralized transactions while keeping transparency and storing every piece of information on blocks. Promising to make this world safer, clearer and more efficient. However, in recent few years, Cryptocurrency has become a synonym for blockchain, but it is not all about it.
Though the crypto industry has been at the forefront of its development, blockchain technology’s capabilities go much deeper than this. Blockchains can track the flow of goods and services from production to consumption and can be traced and proven as authentic.
Moreover, it not only identifies potential bottlenecks but also improves the logistics. Consider a service or good’s tracking from provider or manufacturer to customer, with every step documented on a blockchain. This ensures ethical sourcing, and transparency, as well as making sure that counterfeits do not exist.
Breaking Down Complete Functioning Of Blockchain
For a better context, let’s assume a digital ledger which is not just accessible only through a single server but across the network of computers. That is what blockchain is all about. Primarily, Blockchain groups information into blocks containing details like transaction data, timestamps, and unique codes that link them together chronologically.
Making blockchain reliable, since each block relies on all other blocks for information. A single block manipulation would require modifying all the subsequent blocks on the whole network. This substantial quality of blockchain makes it practically impossible to do. The blockchain’s working starts when a transaction is done.
Once the transaction is initiated, there is time and resource-consuming verification, which begins by broadcasting nodes to the computer validating the transaction. After the validation process, the block is formed and added to the existing blockchain. There is no particular entity controlling the blockchain working. Instead, there are multiple nodes which do the verification and get incentives for it.
Real-Life Application Of Blockchain & Its Benefits
Blockchain is a revolutionary innovation and is poised to surpass conventional information and transaction technologies worldwide. There are numerous underrated applications revolving around and ready to be implemented. Some of them are –
- Blockchains can enhance the transparency and security needed during elections, hosted by any nation or any private entity. Votes can be cast and recorded without anyone being able to tamper, which eliminates the risk of fraud or manipulation. Moreover, those voters will be verified without their privacy being kept or displaced.
- Intellectual art and properties can also take place under the umbrella of Blockchain’s bliss. All authors, artists, and creative industries in general, can take advantage of blockchain’s security features to safely encode their works.
- This does not leave any room for piracy and gives total ownership over any digital piece of art, information, and property. With blockchain registration, original properties can implement royalty distribution for each resale, which ensures recurring profits for creators as well.
- Another healthy example of blockchain is its capability of storing data. Majorly, the healthcare industry can heavily benefit from blockchain. It can be used for storing medical as well as commercial records to ensure secure and transparent records.
This type of sharing of data will only be done upon the patient’s consent. Not only this will foster good working relationships between the healthcare providers and patients but will also make sure that the patient’s privacy is maintained.
Wrap Up
Blockchain has turned out to be a revolutionary move in the financial world. As opposed to the traditional means of cross-border payments, which usually take a longer time, Blockchain transaction is automated and instantaneous. This reduces the time needed for settlement and makes access to trade finance easier.
From providing swift transactions, optimized operational efficiency and reduced processing times to a fraud prevention ecosystem fortifying security protocols. It has everything that the financial world has demanded up until now.
