If you’ve been dabbling in the world of technology and innovation, you probably have heard about blockchain at least once in your lifetime. Nevertheless, unfortunately so, you may have dismissed it as a buzzword, a fad, or unnecessary jargon for all you care.
However, it’s not just another fad that the technological world has produced. Blockchain is a little more than that, and it’s here to stay. So, let’s learn more about it.
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Blockchain – What Is it Really?
From a technological viewpoint, blockchain, in essence, is a distributed database. Hence, the assets available on this platform cannot be processed by a single processor. Instead, it can be used and kept a track of by the user of the technology – you!
As the name implies, blockchain usually keeps all the available data in a box format. And, it’s usually stored in a chain format. Once you have created data within it, you won’t be able to delete it ever again. Thus, the risk of data alteration will be nearly non-existent here.
Almost everything related to Cryptocurrency is made with blockchain technology. Even a trading platform, follows the same to store your information. Thus, it can be quite efficient in terms of security and data-storing fluidity.
How Does Blockchain Work?
On the internet, almost anyone (including you) can publish any type of information you want. And, people can access it whenever and wherever they wish to do that.
However, it’s a little different with blockchain.
With it, you can send any type of value to anyone who’s using the same platform. However, if you want to do it, you’ll need to have a cryptographically-created key.
Apart from this, you’ll also need to own a block or two to edit them, like a domain. If you’re not the owner of a block, you can’t use it even if you have a key to back you up.
Also, only you having a private key isn’t going to be enough to distribute anything through a blockchain platform. The other person needs to have a public key to receive it too.
What’s The Importance Of Blockchain?
In the beginning, blockchain might not seem good enough at all. But, the more you look into the details, the better the prospect will seem to you. Let’s learn the benefits to know more.
Benefit – 1: Robust Security.
Your data is critical and sensitive. And, blockchain can offer the right amount of pampering and care it needs to be sent to someone securely enough.
Also, after sending the value, the blockchain will create a block on the same within the platform. It cannot be changed or deleted anymore. So, no one can caricature it as they please.
Benefit – 2: Higher Transparency Rating.
If you don’t have blockchain integrated into your system, you’ll have to create a new database to keep your information. However, that’s not going to happen with blockchain.
Due to it having a distributed ledger, you can keep the data in more than one location. Hence, it will be easier for every participant to check the data whenever they want.
Benefit – 3: Excellent Traceability.
While sending the value to another person, the blockchain keeps creating an audit trail on it. So, it will be easier for you to trace the details of the data whenever you wish to check it.
Data traceability might also assist you in identifying one or more supply chain weaknesses. Without any issues, you can also give the same to your customer.
Benefit – 4: Task Automation.
If you want, blockchain technology can help you automate a task with a feature known as the smart contract. It’s all about keeping a pre-specified condition and meeting it accordingly.
A smart contract can lower human intervention to some extent and reduce the dependability of a third-party application. It can also increase your speed and efficiency massively as well.
What Does The Future Of Blockchain Look Like?
Blockchain has become quite popular already – due to its excellent efficacy and security. But, we feel like it still has quite a lot of space to grow, especially in the automation department.
Hopefully, we’ll see some sort of changes in that aspect soon enough. Nonetheless, until that happens, don’t forget to research a little more on blockchain and learn as much as you can.