In this blog, I will try to explain Blockchain technology and its process in simple words.
Blockchain is nothing but a simple type of database. A database where data is stored in the form of blocks and then chained together. It is possible to store various types of information on a blockchain, but the most common use to date has been as a transaction ledger. Any number of people can access the database, it is mostly owned by a corporation and controlled by an appointed person who has full control over how it operates and the data inside it. In the case of Bitcoin, blockchain is used in a decentralized way such that no single person or community has power, rather, all users maintain control collectively. When speaking of Bitcoin, it applies the Decentralized blockchains which are immutable, which means that they are irreversible in nature. This ensures that transactions are permanently registered and open to everyone.
Blockchain is not only applied in the field of transaction or Bitcoin, but there are tremendous growth and application that can be found in various sectors.
1. Banking and Finance
Integrating blockchain in this industry, consumers will see their transactions processed in as little as 10 minutes regardless of holidays or the time of day or week. Also, banks now have the ability to share funds more easily and safely between institutions. For example, the settlement and clearing process may take up to three days in the stock exchange industry (or longer, if trading internationally), which ensures that the money and securities are frozen for that period of time. However, this phase can be completed changed with the use of blockchain.
For cryptocurrencies like Bitcoin, the blockchain forms the backbone. Blockchain enables Bitcoin and other cryptocurrencies to function without the need for a central authority by spreading its activities through a network of computers. Not only does this minimize risk, but many of the processing and transaction costs are also removed. This is profoundly useful to those who have no state identification, the use of cryptocurrency wallets for savings accounts or as a means of payment. Some countries may be war-torn or have governments that provide identification that lack any real infrastructure. There may be no access to savings or investment accounts for residents of such nations and, thus, no way to safely store money.
In this field, providers may use the blockchain to safely store the medical records of their patients. When a medical record is created and signed using blockchain, it provides patients with the evidence and assurance that the record can not be altered. These personal health records can be encoded and stored with a private key on the blockchain so that they are only available to individuals thus ensuring privacy.
4. Records of Property
The process of recording property rights is both burdensome and inefficient even in today’s time. Not only is this process expensive and time-consuming, it is also fraught with human errors, where each inaccuracy makes property ownership tracking less successful. In this situation. Blockchain has the ability to remove the need for scanning documents and monitoring physical files. If the ownership of property is stored and checked on the blockchain, owners can trust their deeds to be accurate and permanently recorded.
5. Supply Chains
This can be the most innovative field where Blockchain will be the game-changer. Blockchain can be used by manufacturers or suppliers to record the source of goods they have bought. This will allow businesses, along with such common labels as “Organic,” “Local,” and “Fair Trade.” to check the authenticity of their goods.
6. Electoral Polling
Blockchain voting has the ability to eradicate electoral fraud and improve voter turnout. In the electoral process, the blockchain protocol will also ensure accountability, minimize the workers required to administer an election, and produce almost immediate results for officials. The need for recounts or any real concern that fraud could threaten the election will be removed by this.