Technology

Review of Blockchain Technology and Its Importance

Modern technology is greatly transforming our world today. There have been worries over the past years when it comes to transactions involving finances. This is because there was no better way of sending secure data over the internet. One important invention that mankind has to indulge in is why we call Blockchain technology. Many companies have now adapted it and are now using it to their greater advantage. So let’s get to the point.

What is Blockchain Technology?

To understand the term better, we hall try to evaluate what chain and block mean in this instance. When you have data from various clients all combined together you will call this a block. On the other hand, the chain is a way of securing these data to ensure that they cannot be modified by one person. To be brief, Blockchain technology is a way of sharing data among various computers without having a single point where someone can manipulate the data it make use of cryptography secure these data. If you are making your transactions using bitcoin, the technology will ensure your data and that of the dealer is safe and that they can be changed.

How Does Blockchain Work?

When you have a common data shared across all the computers on the network, Blockchain technology ensures that the data can be shared easily and that they are similar across all the devices. One advantage of these modern technologies is that the data will keep updating itself when a change has been made. This kind of advantage, anyone sheering these data can verify the information for the common good of both parties involved.

What New Applications Will It Bring Us?

  • Smart Contracts

Singing of paper and making follow-ups have been the greatest problem with contracts. For one to get a contract, they credential will have to be verified which may take a long time. Blockchain technology brings to as a new dawn of development. Because there are always shared data open for both parties involved, it’s easier and takes short time to verify the data which improves the smart contract.

  • Quality Assurance

Buying products from industries or retailers can be hectic especially when you have no information about the products. Blockchain technology has improved this sector and there is hope that shared data will enable consumers to trace the origin of products and verify their quality before buying them.

  • Voting

Democracy has been a major concern in many nations. Every time a voting exercise is held, you will hear others complaining that votes have been rigged. Blockchain can be the solution to all these. With each vote cast, the Blockchain technology will keep updating the information. Citizens can also vote over the internet and avoid problems related to the war on polling stations.

  • Research

Just imagine of the research that was conducted in 1900 was somewhere for public use, what could have happened?  More improvement could have been done to it. For research institutes, shared and encrypted data could help save humanity. Weaknesses of certain inventions could be improved to make the world a better place.

Benefits of Blockchain Technology

Benefits of Blockchain Technology

  • Lowers the Transaction Cost

For one reason or the other, you will discover that many people have been losing money to the third party agent dealing with money transfer. This is why all people have turned to Blockchain technology as it eliminates the third parties and ensure you do not spend much on the transaction fees.

  • Transparent Way of Doing Business

When dealing with a bank, or any agent, you are never sure if your money is in safe hands or not. This should not bother you anymore as Blockchain technology has improved the cryptocurrencies sector. It processes your money and just as the code commands. The data is there for you to confirm.

  • Global Transaction

For those who deal with international business, it may be very tough for you when you discover that you cannot receive your pay just because the PayPal, pioneer or any other third party money transfer service doesn’t work in your country. Blockchain technology can open a global way of transferring money. This can improve the international trading.

  • Reliable, Durable and Faster

There is no secret place where the transaction information is stored. There are everywhere and no hacker will get to your data. The information is durable and you can always make reference whenever you needed. It takes a shorter time to get your money when you use cryptocurrency services such as bitcoin because there is not much protocol involved.

Possible Side Effects of Blockchain Technology

The regulation concern is a major factor hindering many people from shifting to Blockchain technology. In most cases, various governments often regulate the flow of money. If cryptocurrencies I to be used globally, then it may take another decade for the world to come into agreement.

As much as people claim that this technology will be the fastest way to perform any task, the common challenge is still slow performance. Excess data to be executed at a time is likely to lower the working speed.

For Blockchain technology to function, it will need a lot of electricity. This may be an environmental concern because a lot of energy will be used in the process.

The Bottom Line

It’s very clear that Blockchain technology can make it easy to share and transfer data. If you haven’t embraced these technologies then it’s wise if you make a move today. If you keep waiting, you may never enjoy the blessing given to us by modern technology.

Source Link

  • https://blockgeeks.com/guides/what-is-blockchain-technology/
  • https://www.blockchaintechnologies.com/blockchain-technology/
  • https://www.goldmansachs.com/insights/pages/blockchain/
  • https://cryptolume.co/pros-and-cons-of-blockchain-technology/
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