Relevance Of Blockchain Technology in The Modern-Era

The technological trends in the decade represent massive changes in lifestyle of an individual and their needs. Technology is now seems like an integral part of our life.

Ever heard about cryptocurrency like Bitcoin related to the word “Blockchain” somewhere or the other ?

We might have seen it flashing in the news but most of us do not understand the technical aspects which comes along.

Here is a complete guide to understand the Blockchain Technology from the scratch.

What is Blockchain Technology ?

The Blockchain Technology is a structure storing transactional records (known as block) of an individual in several databases, which are known as “chain” connected through peer- to- peer nodes in any network. The storage is known as a ‘digital ledger’.

Blockchain Technology emerged in 2009 as a public ledger of all the Bitcoin transactions.

Popularity of Blockchain Technology

Let us suppose you are transferring money to your friend from your bank account. You will make use of internet banking and login to your bank. You will transfer the amount to the friend using their account number. When the transaction is completed, the bank updates the record. It is seems quite a simple procedure right?

But there’s a potential issue which is neglected by most of us.

These kind of transactions can be tampered easily. People who have understood this issue, refrains from making these type of payments, hence the third party applications growth is evident to us now. This is where the Blockchain Technology comes to rescue by record keeping of data for faster movement of the transaction and avoiding the access of third party.

Another reason for it’s popularity is that Blockchain Technology supports various applications related to multiple industries like supply chain, finance, manufacturing etc.

Advantages of Blockchain Technology

• Highly Secure: The digital signature feature prevents fraudulent transactions, making it impossible to corrupt or change the data of an individual by the other users.
• Decentralised System: Conventionally, the approval of regulatory authorities like a government bank for making the transaction is required whereas with Blockchain the transactions are done with mutual consensus of the user which results in safer and faster transactions.
• Widely Accepted: Ever since the emergence of Blockchain Technology it is widely applicable in many areas like record keeping of data, cloud storage, asset management, ID systems etc. It is also used by the software development companies in m storing and retrieving the files.
• Automation Capability: It is programmable and is able to generate systematic actions, events, payments automatically.

Working Of The Blockchain Technology

The working of Blockchain is really simple to understand.

A file contains blocks of data, each block being connected to the previous block forming a chain. The block also contains the record so as to know when the block was created or edited, which makes it useful for maintaining a detailed system of record that cannot be tampered.

The transactions or records are not maintained by a central administrator, but by a network of users. Any user can view the entire blockchain.

Bitcoin is the first example of blockchain in action.

When Should You Use Blockchain ?

Blockchain has shown immense potential in so many industries but the best of it only comes when used as per the requirement.

• If you want to manage or secure digital and decentralised system of record is when the Blockchain Technology benefit you. It is extremely beneficial in case you want to maintain a long- term record of asset, data etc. Automated payments can be made when both the parties agree that their conditions have been met.
• It removes the scope of a middleman for performing any function. For instance, to book accommodation of any place you take help of may websites, Blockchain can change the scenario by connecting the customers directly to the hoteliers so that they can make the transactions easily via Blockchain rather than booking through a central platform.
• When you would want to record secured transactions, especially between multiple partners. A traditional database may work fine for simple transactions but when things get complicated, then Blockchain reduces the bottleneck and simplifies the procedure.
• Blockchain is an effective and safer way to record activity and keep the data updated, while still maintaining a record of its history. This data can not be tampered by any user and can’t be accidentally deleted.

Real-World Usage of Blockchain Technology

The first ever big use of Blockchain Technology was a part of the cryptocurrency Bitcoin. However the practical applications exists much beyond the cryptocurrencies.

• Healthcare: Two famous Blockchain products designed for better healthcare management are ConnectingCare and the second one is Health Nexus. Both are designed to provide decentralised blockchain patient records. Other start up companies are also working to build a blockchain for storing disease outbreak data to increase the effectiveness in the disaster relief management.
• Banking Facilities: We have seen examples of many banking institutions using blockchain for tracking the financial transactions and combating fraudulent situations. Automated payment option is created to make payment a hassle free process through Blockchain.
• Smarter SupplyChain Management: Product status, condition and tracking is the key for business as well as for the consumer. Blockchain technology helps in tracing the information regarding which maintains the transparency between the businesses and the consumers.
• Insurance Sector: The aim is to facilitate law enforcement and the insurers verify insurance coverage in real-time and make claims procedure easier and more efficient. Blockchain enabled smart contracts have the potential to ensure that only valid claims are paid out.

Conclusion

Blockchain has become one of the most important technology in today’s technological trends. It demonstrates strong growth and potential in the near future to operate in a variety of ways by making use of different mechanisms. Looking at it’s success and increased usage it is to say that Blockchain technology has set it’s feet quite well in the technological domain.