Why blockchain is the future? not just the crypto, 5 application for Blockchain

Why blockchain is future? not just the crypto, 5 applications of Blockchain

“I believe in blockchain tech, and is different from crypto”

– Mukesh Ambani

We must not be wrong in saying that Blockchain is one of the hot topics of the moment. With the digital currency being the talk of the town with a random advertisement suggesting us to invest in crypto or private cryptocurrency bill introduced by the Government of India. Is it only about crypto or it can be used in various other fields also? Let’s understand the concept of Why blockchain is future?

What is blockchain?

Why blockchain is future? not just the crypto, 5 applications of Blockchain

Blockchain can be simply understood as the name suggests, as a chain of blocks that store and contain data. It stores information in an electronic format like a digital interface.

Now, why it has been called the technology of the future? is because it has information loaded in blocks that are secure making it impossible to hack or change and any third party cannot have access to any information. It has also been called a digital ledger that stores the information regarding the transaction made, that is stored on the block. This is also called Distributed ledger technology (DLT)

It is interesting to know the features of the DLT, which will bring us closer to our question of why Blockchain is future:

  1. Secure: Every record of digital transaction is individually encrypted which means translation of the language of the data can be only read bt someone who is actually authorised and has the Hash key..
  2. Anonymous: The Identity of the participants involved in the transactions are concealed and are anonymous.
  3. Time-stamped: Every transaction that happens on the blockchain technology is duly recorded of when it happened.
  4. Transparent: To maintain transparency of the records, each transaction is recorded and it’s ledger is sent to all the participants of the transaction.

If any hacker wants to intrude, corrupt, or want access to the data of any ledger, one has to decrypt with the block which contains that information, which means changing all the blocks which have the same information which is particularly very difficult and impossible to do.

How Blockchains work?

Why blockchain is future? not just the crypto, 5 applications of Blockchain

So, essentially the work of Blockchain technology is to record the transactions in the ledgers. Blockchain is the only technology that can be used to lodge transactions whether it is of cryptocurrency, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), or smart contracts. Let us look at the transaction process and how it is entered: 

Suppose a transaction has been entered on the blockchain, now this transaction is spread into a network of connected computers which are scattered around the world, then this network of computers confirm the validity of the transactions by solving related equations then, once confirmed to be a legible transaction, they are joined together in different blocks. After the transaction has been chained in the blocks these are then joined together creating a string of transaction history that would be secure and safe, so this is how a transaction is completed.

So by this process, any type of digital transaction can be stored into the blockchain which converts it into a string of letters that would keep all the transactions of a single party into one place just like a traditional paper ledger where all the transactions can be written at the same place and recorded.

Okay blockchain is future but is it really safe?

Okay blockchain is future but is it really safe? 5 applications of Blockchain

In a world where cyber crimes are at their highest peak, the safety of transactions is the utmost priority. LET us know how blockchain technology is considered to be one of the safest and touted as the future: 

If we use computers and software to store any transaction process and digital information. So essentially if there is a big company and all of its data is stored in a set of 100 computers placed in a big room of the headquarters of the company, there is a higher risk that this data can be fiddled with by any employee or any hacker. Even if they are security proof there are chances of power failures, internet dropouts, or even fire, then data will be lost.

But if the data is stored in blockchain technology, and someone tries to fiddle with data or alter the record in the database. One can easily find out by reaching out to the blocks attached to that transaction which will act as a cross-reference with each other and will easily pinpoint the block which has altered which provides a history of transactions that lead to the exact and fair and transparent order of events which happened.

Blockchain is definitely not limited to the use of storing transactions, an array of legal contracts, clients’ databases, etc. can also be stored using blockchain technology. The rising use of blockchain is future art of storing data.

Blockchain in finance.

So now we know that what blockchain technology is, and how it works, let us look at how this technology can transform and revolutionize the financial sector as blockchain is future.

As blockchain is a distributed form of the ledger and no single entity or a person has the ability to fiddle with it. This function can help the companies to save their data and financial services by being more transparent, enabling, and easy to access which means there is less possibility of cheap frauds that happen with the companies.

As with the onset of a pandemic, a lot of informal financial sector has been shifted on the technological forum, the risk of cybercrimes have been up by 75%. The use of blockchain technology is a boon to all these companies and also for the people who fall prey to these scammers and fraudsters. Payments and transfers made on blockchain technology are far safer than on traditional Banking.

In the banking ecosystem that we use in the present day, there are a lot of intermediaries involved which can, on any level intercept the transaction and data which can lead to fraud setups. This loophole can be plugged-in by using blockchain technology that provides security for both the parties involved in the financial acts. ( blockchain is future )

“In traditional finance, clean audit trails can be difficult to procure at times, which have led to severe economic losses in the past due to negligent behavior or malicious acts. This risk can be significantly reduced with a combination of blockchain technology and machine learning to monitor and manage risks with a high degree of precision”.

Co-founder and CEO at WonderFi, A decentralized finance platform.

5 applications of Blockchain ( blockchain is future )

5 applications of Blockchain ( blockchain is future )

1. Cryptocurrency:

Due to the lack of awareness and clear information, a lot of people tend to equate blockchain and Bitcoin as chain technology. But in the real sense, Blockchain is a mere platform to store and record transactions be it of any digital currency, legal contracts, or database of clients. And Bitcoin, on the other hand, is a form of digital currency which can be mined and is surfaced and traded on the technology called a blockchain. Just like bitcoin, other examples of cryptocurrency which are there on Blockchain technology are DogeCoin, Ethereum, etc. More to come with the evolution of blockchain is future.

2. Voting:

Voting is a very important right for any democratic country and the way of taking the votes is pretty old and tampering is a big issue also time-consuming. And digital voting is also not a full-proof idea. But If blockchain takes place, then it will use Elliptical Curve Cryptography, which generates keys and hashes, that results to store the votes in blocks very securely.

3. Artist royalties:

We can use blockchain technology to track music and film lines distributed over the internet, which also can make sure that artists are paid for their work. Since blockchain technology was constructed to ensure the same train does not live in further than one place, it can be used to help reduce pirating. A noble use of blockchain is future.

4. Hospitality sector:

Be it hospitals, or food chains, or hotels, Blockchain can be used to secure every patient’s data, as well can help cut out the middlemen, encouraging direct provider-to-consumer interaction and reducing costs, in hotel chains.

5. Defence sector:

The traceability of the vehicles, parts and material used in the defence assiduity is also pivotal. Blockchain technology can help to determine the origin of the munitions from product to delivery and to help fakes. Must use case where blockchain is future.

Conclusion

So, it’s not okay to say that bitcoin is the future, its value is uncertain and it’s legalization too, but the technology which is here to stay and has proven to be the plug into all the loopholes currently prevailing in the banking, software or the data system is “Blockchain”, which is safe, secure, fair and transparent. We hope, we have answered most of your questions related to the Blockchain, you understood why blockchain is future? Thanks for Reading.

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