When a new technology comes to existence, it also comprises new possibilities. Therefore, old techniques gradually start losing their significance. However, it is not easy to adopt the new concept especially when it is as complicated as blockchain. Initially, it was made for managing cryptocurrency, but its several benefits are discovered later. Blockchain technology is still at its budding stage; thus you can expect many possibilities in the future. The main reason behind its invention was to tackle the issue of double-spending while dealing with cryptocurrency. Before knowing its benefits and areas of possibilities, you need to understand its basic concept.
What is Blockchain?
Generally, people get confused with terms like blockchain, cryptocurrency, and bitcoin. Actually, all of them are interrelated to each other but have different mechanisms of working. The blockchain is a digital ledger that you can compare with an accounting book where you can keep the record of all transactions. Rather than maintaining the record of hard cash, it is completely dedicated to managing virtual currencies. Bitcoin is the first cryptocurrency which is the reason for its massive popularity. However, hundreds of cryptocurrencies are now available that you can use for digital money transactions with the help of blockchain.
The blockchain is basically a peer-to-peer network of several computer systems that are also called nods. It is basically a decentralized network in which you don’t need authorization by a central institution like a bank. The data structure of blockchain creates and shares a distributable ledger of virtual currency transactions among the network of nods. The entire data is encrypted in a manner that everyone on a particular network can see the details but cannot modify them. The secure hash algorithms of 256 bit are the key to encrypt the data which is almost impossible to modify. If someone tries to make any change, the attempt will expose on the network.
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Significant Benefits of Using Blockchain
#1. Cybersecurity Enhancement
This is the first reason why blockchain has a bright scope in future. The vulnerability of cybersecurity is getting so common that even IT giants like Facebook and Google are also not safe. The blockchain is the ultimate answer to all cyber threats because it allows data to enter in blocks. When a new block develops, it comes on the top of the previous one creating a chain. If someone tries to change even a single digit of data from a block, the entire chain gets altered. Nevertheless, it doesn’t cause any damage to the blocks because of the encryption. A blockchain is a great tool for preventing data from damage, loss, theft or corruption.
#2. Improve speed and save time
The automation process of blockchain is reliable enough to speed up the process of transactions as well as data transfer too. It doesn’t require any traditional paperwork and third-party mediation. Thus, the entire process completes without the risk of human errors and negligence. The common network in which all parties are dealing acts as a regulator of transactions.
#3. Transparency
Blockchain works on the basic concept of transparency where every stakeholder has access to data, but no one can modify it. This creates transparency as well as builds common trust between all parties. All participants of a deal have a complete record of transactions that minimize the risk of fraud.
#4. Better Traceability
For industrial purpose, Blockchain Australia plays a very important role by enhancing traceability. The industries where product supply chain has a complex mechanism, it becomes very difficult to track the origin and destination. When the entire tracking process comes under blockchain, the information regarding a particular package’s journey gets recorded in blocks. Here one can precisely monitor every stop where the package passes through.
#5. Proof of concept
Blockchain provides a secure and convenient platform for POC development with the help of its secure blocks. Whether it is a theoretical concept or prototype, one can store the entire data and information in the blocks for testing or execution purpose. It is helpful in identifying the potential and practical possibility of an idea. Currently, proof of concept is helping the major sectors including voting, insurance, management and record storage.
These points are only the current possibilities of blockchain applications that will expand in future. It is an innovative step in creating the internet more secure, fast and productive. Rather than following the monopoly of a few companies, it endows everyone with equal privilege.