Right now we are living in an age where you can keep your money in a digital wallet without linking it with a bank. It means you can transfer money to anyone in seconds without asking your bank for permission and without paying bank fees or any other third-party costs. You have proper control over your money. This is only possible because of Blockchain Technology.
Blockchain Technology is the concept of storing information like transactional data in several databases, also known as Blocks. Blockchain stores information in multiple places on a computer network. The Information that is stored on different blocks in the Blockchain has a certain storage capacity. A fresh block is added to the chain when the previous block’s storage capacity is fulfilled. A filled block is added to the chain over time, that’s why it is known as Blockchain Technology. Blockchain Technology is immutable means; the stored information cannot be tampered with or unchanged. Data stored on Blockchain is accurate and safe. That is the reason why Blockchain Technology is a reliable source of storing data especially financial transactional data.
Here Are Some of The Advantages of Blockchain Technology
1. Secure and Trustful transactions- The immutable and automated Blockchain network always verifies the transaction before recording for checking the authenticity. After confirming the authenticity of the transaction it is added to the Blockchain blocks. Transactional Information contained in blocks cannot be mutated or changed without the consent of both parties. Transactions cannot be altered or edited without meeting all the necessary permissions and authentications. It means it is impossible to corrupt or alter any transactional information in the Blockchain network.
2. Decentralized System- Blockchain Transactions are done in a Decentralized system. Unlike conventional systems where the transaction cannot be completed without approval from the higher regulatory authorities like the government or bank. On the other hand transactions on the Blockchain are done with mutual consensus between the users. Decentralized transactions are faster, safer, smoother, and reliable.
3. Less Cost- In the conventional financial system, every transaction needs to be verified and processed by third parties. Customers have to incur the cost while making and accepting payments. On the other hand, the Blockchain system eliminates third-party verification while processing the transaction. It results in a reduction in transaction cost or any other associated cost.
4. Banking Facility to Everyone- Storing or Holding the cash in physical locations can be subject to the risk of robbery. There are still many people globally who do not have a bank account or any other means to store money. Blockchain gives you the ability to store your money or wealth securely without the need of opening a bank account. For example in Bitcoin Wallet you can safely store your money, you just have to remember the keys. You can either memorize your key or save it on your cell phone.
5. Uninterrupted transactions- Transactions implemented under Traditional systems are governed by central authorities such as financial institutions. They mainly operate during working days for processing the transactions. For example, you cannot deposit or withdraw any amount from the bank on non-working days and holidays. However, Blockchain system works and process transaction 24/7 and 365 days.
The transactions are not governed by any third parties like banks or any other financial institutions. Payments made under the Blockchain system were completed without any interruptions. Once all the conditions are met in Blockchain protocol a transaction cannot be halted or changed.
Here Are Some of The Important Applications of Blockchain Technology
1. Financial and Banking Implementation- The Implementation of Blockchain technology in financial and banking operations can be beneficial. By Integrating Blockchain technology into banks and other financial institutions, funds can be easily transferred quickly and securely regardless of any holidays and non-working days. Blockchain processes transactions in minutes, which can take many days in the traditional system of processing transactions. Basically, in Blockchain technology it just takes a new block to be added to the Blockchain in order to process a transaction. Banks and other financial institutions can save a great amount of money and time by implementing Blockchain technology.
2. As a Currency- Traditional Currencies are controlled and authorized by the Central authority system that is a bank or a government. In case the user’s bank is hacked or collapses because of an unstable government with a lack of real Infrastructure. There can be the risk of a decrease in the value of the currency or the risk of the leakage of private information.
On the other hand, Blockchain Technology doesn’t need a central authority to operate. Digital Currencies include Cryptocurrencies and Bitcoin as well as other digital currencies like Ethereum, Polkadot(DOT), Tether(USDT), and Binance Coin(BNB), etc. These currencies have wider applications than traditional currencies. Digital currencies are more stable and secure, that’s why individuals and institutions can do business across the borders easily. It can be beneficial for people where the governments are not stable, digital currencies can help users save and invest their money wisely regardless of any control of central authorities.
3. Smart Contracts- Another application of Blockchain Technology is Smart contracts. A smart contract is a code generated using Blockchain technology that executes automatically to complete or negotiate a contract agreement. A set of conditions are made in the computer code by the users, when these conditions are met the contract is accomplished. Smart contracts also eliminate intermediaries and other associated costs and process fees which can be beneficial for both parties in a contract.
4. Healthcare- Nowadays even Healthcare institutions are at risk of data breaches. Cybercriminals know that sensitive information like patients’ medical conditions can be really valuable. There are many examples of big names in the Healthcare sector who suffer from the loss of patient information data. Blockchain Technology allows the patient’s data to be recorded securely so that medical records cannot be changed or breached. Patients are assured that their medical information can only be accessed by a private key. It will bring confidence among Patients that their privacy is ensured.
5. Supply Chains- Blockchain Technology can be used in the Supply chain to track the origin of the foods that have been purchased by the companies involved in the food supply. It can be really easy for these companies to trace the contaminated food as well as verify and authenticate their products. In Logistics also Blockchain Technology can be used to track the food from the farm to the end-user for the safety of the food.
Conclusion- With many different applications, Blockchain Technology is here to stay. As more people realizing the importance of Blockchain Technology more resources and money are invested into this Technology to expand its application to other areas. With so many real-life uses, Blockchain Technology will soon rule the digital world.