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What is Blockchain technology?

Blockchain technology has been making headlines nowadays and it’s not hard to see why.
Blockchain has the potential to change everything from accounting to voting. Unlike traditional banking systems, which rely on a centralized authority to verify and process transactions, blockchain uses a network of computers to validate and secure transactions.

How does blockchain work?

Blockchain is a distributed digital ledger (BDL) technology that allows for secure, transparent, and immutable record-keeping of digital transactions. In simple terms, it is a database of transactions that is shared across a network of computers, without the need for a central authority or intermediary to validate the transactions.

Each block contains information about transactions or data, and is verified by a network of computers to ensure its accuracy. Once verified, the block is added to the chain and distributed to all participants in the network. The blockchain is secured using cryptography, making it difficult to hack or alter the information stored on it. This allows for secure and transparent sharing of information without the need for a central authority.

Advantages of blockchain

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The blockchain has demonstrated a number of advantages over traditional Financial Technology. For instance, deals with cryptocurrencies are secure it’s not possible to make an unauthorized transaction or double- spend finances because all purchases are recorded on a public ledger.

Future of blockchain

As the technology continues to evolve and become more mainstream, we can expect to see more innovative use cases and applications emerge.
1) Decentralized finance (DeFi): DeFi allows for peer-to-peer transactions, lending, and investing without the need for traditional financial intermediaries (i.e, Banks or Government)
2) Voting systems: Blockchain technology can be used to create a secure and transparent voting system that eliminates the risk of voter fraud and ensures accurate results.
3) Smart contracts: These contracts can be used to automate various processes, such as payment processing, property transfers, and insurance claims.

There are many more applications of Blockchain in Digital identity management, Energy management and Supply chain.

By-Aditya Rawat

LinkedIn: https://www.linkedin.com/in/aditya-rawat-6a824a256