Blockchain’s Journey to become one of the Most Talked-about Technologies of Today
Blockchain is a cutting-edge technology, which was first invented by a person or a group by the pseudonym, Satoshi Nakamoto. Bitcoin was introduced in 2009 following the release of Nakamoto’s whitepaper. Blockchain, being time-stamped, transparent and decentralized, provided the answer to digital trust, which is a prevalent issue even today.
Since it was started as a cryptocurrency, many people believed blockchain and bitcoin to be one and the same. But they are not because bitcoin is just one implementation of blockchain. Blockchain is an open, decentralized datastore that effectively records important information and transactions between two parties permanently without requiring a third-party authentication. Once it is recorded in a blockchain network, it can never be removed or altered. Moreover, it reduces dependency on middlemen and thus reduces the cost of peer-to-peer transactions.
Beyond Cryptocurrency
Around the year 2014, people started realizing Blockchain’s potential beyond cryptocurrency and many of them invested in it. Gradually, blockchain grabbed attention of the entrepreneurs from around the world and a surge of investment and discovery started for exploring the impact of blockchain in various industries such as supply chains, contract management, insurance, healthcare, voting, transportation and so on. A number of financial institutions and banks are currently using blockchain technology to make their process more efficient.
Ethereum was launched in 2015 and the concept of smart contracts was also introduced. Unlike bitcoin, Ethereum was able to record not only currency, but also other assets such as loans and contracts. Smart contracts are self-executing codes that automatically can process based on the fulfilment of certain criteria. (Read more about Ethereum and Smart contracts in our Blog)
The Importance of Blockchain
Industries such as commodities trading that are still holding on to old or traditional system of transactions are suffering from inefficiencies and need revamp. Blockchain can help such industries to rejuvenate. Some key benefits of blockchain technology are highlighted below:
Faster Execution
Distributed ledgers use computer protocols to facilitate, verify and execute a contract according to business rules. These tasks are customized on a contract-to-contract basis without involving any middleman. Hence, the process becomes highly simplified. This allows trades and contracts to be executed much faster.
Cost Benefit
Operational inefficiencies owing to lack of modern technology for storing records of trade and transaction of information leading to a huge number of third party involvement is the key reason behind high and volatile cost of any transaction in a business. If all transaction is done in a blockchain network, it will make the process more efficient, eliminate unnecessary intermediaries and thus reduce the overall cost of transaction.
Transparency
As all information in a blockchain are recorded in a public distributed network, every member of the network can access the information any time they want. So, the system becomes more transparent and it results in an increased trust among the parties involved in the transaction.
High Immutability and zero Downtime
All transaction in a blockchain network are immune to systematic abuse or hacking. Moreover, a blockchain network never suffers from downtime issues.
All these benefits show how important it is to adopt blockchain technology for an increased effectiveness of any process in today’s fast-paced world.
Blockchain is a revolutionary mechanism that brings people to the highest degree of accountability. Errors, missed transactions and the consent of third-party to initiate or execute a transaction are slowly becoming a thing of the past with blockchain technology. Most importantly, blockchain helps to guarantee the validity of a transaction by recording it on a decentralized distributed network. Hence, it is understandable why blockchain has acquired such an important place among investors and entrepreneurs alike.
About Kratos
Our Flagship product KRATOS™ is a decentralized commodities trading platform. KRATOS™ is built on Ethereum and it uses smart contracts to remove the need for unnecessary middlemen and paper documentation, to enhance transparency and efficiency as well as to lower the cost and time involved in the trade process. Currently, in the beta testing phase, KRATOS™ will be released soon.
Email us at contact@triterras.com
