Blockchain is one of the hottest debates that going around the world these days. This technology still remains unbelievable for many. Blockchain is basically a digital ledger in which transactions made in Bitcoin or other crypto currencies are recorded in a chronological order. It is a distributed database which is used to maintain a continuous list of ever-growing records called ‘blocks’.
There was an era when transaction of money was relied heavily on banks and governments. These centralized institutions performed number of tasks like record keeping and authentication. Such concept became obsolete due to incorporation of thought of why to pay a distributor when one can distribute himself. People then looked for ways to conduct digital transactions giving rise to first major Blockchain which was a digital currency called bitcoin. In a nutshell, bitcoin is a crypto currency used for transactions on digital payment system.
According to market capitalization, bitcoin is the largest Blockchain network. It originated from open-source software with an objective of carrying out peer-to-peer transactions without interference of a third party. These transactions are verified and recorded in public ledge named Blockchain.
Impacts of Blockchain
Blockchain is a highly volatile technology that has continually changed the world. It is revolutionizing the global economy. Digital currencies have one of the greatest impact on our contemporary economy. It has created an economy of trust and value established on agreements and complicated computer codes.
It has created applications that goes beyond digital currencies. Such applications are patient health records management, proof of ownership for digital content and much more. It also assists in free flow of business by shortening the long process of transactions from banks and governments. It has increased the number of people and businesses to conduct trade with making it much more efficient, effective and boosted the local and international trade.
The Blockchain system is highly reliable than the current system in effect. It will shorten the process of international currency transfers. The transaction costs will also drop bringing about a revolutionary change.
Almost every other major financial institution is somehow associated with the Blockchain technology. They are carrying out Blockchain research and most of the banks are expected to use this technology by 2020.
Technology has continued to impact each and every aspect of our life. Similarly, it has effected a huge chunk of the global economy. The potential effect of Blockchain technology on society and the economy as a whole is immense. And the impact is a positive one. The technology is continually evolving in various ways to suit the growing needs of public. The world is getting more complex day by day. This technology is developing to meet its demands providing a higher level of security.
After all this discussion, it is pretty safe to say that as the Blockchain gains maturity, more people will catch on to it. This new mode of collaboration tends to expand. This might be just the beginning with most of us unaware of its potential benefits.