Credit: Data Science Central
The blockchain is one of the hottest and fastest growing skills in the IT sector today. It is said that there are around 44% of organizations that have adopted blockchain globally. We all know that this technology has taken quite a turn in the industry given its popularity in providing safe and secured online transactions.
This technology is already the talk of the tech world. Although it is a complex technology, most individuals and organizations have started adopting blockchain because of the many benefits it offers to the industry today. Apart from the financial sector, it has gained a lot of attention in the other industries as well.
Before moving further, let us try and understand what is blockchain technology, the importance, its impact, and decentralization.
The blockchain technology is a decentralized ledger that keeps a record of transactions that takes place across a peer-to-peer network. This technology allows participants from across the network to confirm their transaction without the need for a central authority, this includes money transactions, voting, and settling trades and many more.
How does it work?
If someone requests for a transaction, this transaction is then broadcasted to a P2P network that consists of computers which are known as nodes. The sole purpose of these nodes is to validate the transaction and the status of the user using algorithms. Now this verified transaction can either involve cryptocurrency, records, transactions or any kind of other data. This verified transaction is then combined with other transactions that create another block of data. The block of data is then added to the existing blockchain. This blockchain cannot be altered and is permanent.
For some of you who are wondering what is cryptocurrency? It is a digital currency that is designed in a manner where it serves as a medium of exchange using cryptography. This helps in securing transactions, have control over the creation of transaction units and the verification likewise. Bitcoin can be an excellent example of cryptocurrency.
Why do you need to adopt blockchain technology today?
Well, when it comes to the latest technology I’m sure no one wants to fall behind the competition. It is the talk of the town, and most businesses are moving towards blockchain to improve their business models, payment methods and cloud storage etc.
The importance and impact of blockchain technology and decentralization:
● Security purposes
The digital world is filled with hackers looking to breach information or steal data from sources. With blockchain technology, the information stored has robust security making it impossible for one to hack.
Since everything is displayed on the network, there are very fewer chances that there would be any kind of discrepancy that can be created.
● It is inexpensive
Most of the traditional financial models that are available in the market are expensive, however, with blockchain it is inexpensive.
● Less transaction time
An individual can send, receive money and financial documents within a couple of minutes, this reduces the burden of waiting for hours together.
● Financial efficiency is increased
Decentralized blockchain allows one to make transactions from individual to individual without the involvement of the third party. This help saves a lot of money while making transactions, unlike traditional banks.
● Protect businesses from fraud
The blockchain is open source ledgers which is why it is very easy to identify if fraud has taken place since every transaction is recorded on them.
The industries disrupted by blockchain
The banking sector isn’t the only industry that has been impacted by blockchain technology. Other sectors like law firms or law enforcement are other industries that can be disrupted by blockchain technologies.
Here’s the list of the major industries:
● The banking sector – blockchain is said to be the safest way to store banking records and probably the easiest and cheapest means in transferring funds through the decentralization provided by blockchain.
● Voting – voting irregularities could be minimized with the help of blockchain technology. Everything can be secured through blockchain, from casting votes to tallying the votes, the system is said to be indisputable.
● Healthcare – managing records of patients could be a pain during the past, but this isn’t the case today. Today, doctors can easily access patients health records and track them regardless of how many times you have changed the doctors.
● Real estate – buying and selling land requires a lot of paperwork but with blockchain, the process is much easier and simpler.
● The legal industry – storing legal documents, retrieving them and verifying are the key functions that include in the legal industry. And the questions raised over the legality of wills and other important documents can be eliminated by implementing blockchain secured documents.
● The government – in a government sector, corruption can be eliminated using blockchain technologies. For instance, employment, welfare, and disability benefits can be distinguished and distributed in a much easier manner.
Over the next decade, there will be new blockchain ideas that would emerge, few might be a success and a failure. But during the process, there will also be some great problems that will be solved with the emergence of new models.