Blockchain Tech: How It Changed the World For Betterbr>
Blockchain is essentially a public electronic ledger that uses a peer to peer system and is capable of reducing the need for record-keeping and secures the data over a public database that can be made of digital pieces of information or ‘blocks’.
This technology is the record-keeping technology behind Bitcoin. Understanding blockchain is quite simple. As the name suggests, blockchain offers to use ‘block’ or a piece of information stored in a ‘chain’ or a public database. Although it might sound too difficult to catch up with, it is fairly easy to understand.
It is a fascinating new technology and uses fully decentralized databases, which cannot be censored and help in securing it against money or identity thefts. It offers a decentralized approach to storing and verifying data such that although a lot of people can access it, it cannot be misused or misconstrued.
THE SCOPE OF BLOCKCHAIN TECHNOLOGY
Blockchain technology is getting widely accepted, and its scope is at a constant increase. It is finding use in every industry and is transforming society. Some of the applications include:
- Management of assets in terms of trade processing and settlements
The conventional processes can be very time consuming, risky as well as expensive, especially when we talk about transactions across countries. Therefore, every person who is a part has his own records or blocks, thereby reducing the chances of any discrepancy. Now since there is no mediatory, the process is all the very simple.
- Processing insurance claims
The process of claims can be very hectic, which is not realized very often. The processors have to determine the authenticity of your claim and then look at all the parts of your case since this is all done manually. This shows that the scope of error is extremely large. But with blockchain, we have a risk free and easy system that ensures transparency between the claim holder and processor. So, the assets are insured and received by the right party.
- Cross border payments
Payments over the globe are a very risky business and are costly, as well. The money takes a lot of time to reach the receiver and then can also be lost midway. But now, there is no requirement for that as they increase the scope of remittance companies. These companies offer end-to-end blockchain-driven remittance services. Some of them also allow you to do international transactions 24*7, while clearing it the next day, in no time.
- The new age money lenders
The hard money lenders charge too much interest for a little amount of money. They trap you into bankruptcy and then cease your collateral. To save yourself from this vicious cycle, blockchain can be used where a stranger can loan you money and keep your smart property as collateral. The need to present various documents and all the procedures are efficiently cut down, and the process is simplified.
- Blockchain Internet of Things (IoT)
The blockchain ledger, in this case, as in others, provides security to the Internet of Things. Since many devices are linked together over the internet, the chances of data being misused and hampered can be changed. In addition to this, there is a lot of data to handle from each device, so you also need to store it somewhere. The blockchain ledger system ensures that information is both entered and retrieved by only certain certified and trusted entities. It provides a platform to critically analyze the vast amount of data as well.
- Blockchain in healthcare
All the records associated with a person are stored on the blockchain with a key that can be accessed only by a certain verified group of people. This can make conduction of researches and surveys easier by confiding in the data of the recipient. The ledger can also be used to manage the hospital in general, the testing results, maintenance of supplies, supervising drugs, regulation of procedure, etc.
- Blockchain in music
The rights of ownership, distribution of royalty are the key problems in the music industry. With the focus of the music industry on digitalization and monetization, the key aspects such as ownership and copyright are often at stake. The ledger can provide transparent data from the system about everything regarding the real-time distribution involving all the labels. It brings the world together on one platform.
- Blockchain in community work
The blockchain can ease the organization and management of huge data records for companies, NGOs, foundations, government-run agencies, and even individuals. Parties can exchange data over this technology that reduces the chances of violation of privacy and makes the entire process safer and easier.
THE ADVANTAGES OF USING BLOCKCHAIN
The basic advantages of blockchain are:
- It allows verification of data without the use of a third party system but uses a network of computers.
- The data once on a block cannot be altered or deleted and hence ensures privacy and security. It hence removes the chances of data alteration or duplication.
- The transactions are chronologically assigned, and the data is stored based on the time of the transaction.
- The data is distributed over a number of computers, thus maintaining the integrity of the same.
- The user verifies the transactions, and only that data is used, which is allowed by the user.
Blockchain technology has the potential to disrupt the current systems and has taken the world of finance by a storm. The fact that it ensures efficiency along with privacy solves a lot of previous issues that people have had with data management.
If used and developed wisely, this technology can be a milestone in the world and can help ease the way we’ve ever looked at data storage and management.
Aboobacker is a growth assistant at AirTract.Com, a go-to place for all expert advice wherein people ask questions, write articles, share and learn from paid and free online courses. She is a communication engineering graduate but a digital marketing buff who is fascinated by the best SEO practices and content strategies.