You may not have heard of blockchain technology, but once you read this article you will hopefully have a greater understanding and see why it could potentially change the way we do business online.
In terms of importance, the emergence of blockchain technology could potentially be one of the most influential digital discoveries in the modern age. It could also potentially disrupt the traditional processes and functionality of the banking industry!
What Is Blockchain Technology?
At its most basic description, blockchain technology facilitates transactions across a decentralized P2P (peer to peer) network. What does this actually mean? Basically, it means that two people could perform a transaction (such as a financial transaction) across the internet or through a digital medium without the need for a centralized gateway such as a payment network or bank.
This means that blockchain transactions are extremely quick and also low cost. Since there is no middleman, there are no additional transaction fees. Finally, blockchain technology is extremely secure – the transactions are encrypted and therefore are unreadable if intercepted.
Furthermore, transactions are usually logged on a public ledger viewable by anyone with access, therefore, there is a non-repudiation of data.
Blockchain technology can actually be used in a variety of different ways as you will see below. It is this flexibility combined with the aforementioned benefits that make it such a potential game changer.
How Is Blockchain Technology Currently Being Used?
Despite its relative new emergence in the digital world, blockchain technology is already being utilized for a lot more than just cryptocurrency exchanges and Bitcoin gambling, although those are still the most popular uses. The following are some ways in which this type of technology is currently being used:
Cyber Security – The DARPA (Defense Advanced Research Projects Agency) uses Keyless Signature Structure, which is a form of blockchain authentication system, to protect its sensitive military data and files. Blockchain technology can greatly improve network security levels and eliminate human error that can sometimes result in cyber attacks.
Supply Chains – Blockchain technology can help improve the efficiency of supply chains and also reduce processing times. British Airways, for example, have tested blockchain technology to help manage and analyse flight data between airports in London, Miami, and Geneva.
Charities – This type of technology can help improve the visibility and reliability of donations and payments made to charities. Some charities have historically extorted portions of their funds. Implementation of blockchain technology should help prevent this. The Water Project, for example, is an African charity who accepts Bitcoin as a valid form of payment.
Voting – Blockchain technology can help improve the reliability and integrity of public votes and ballots. As blockchain technology is transparent and the data is visible, there is no potential for altering voting outcomes. The government of Sierra Leone, for example, used blockchain verified voting during its 2018 elections.
As you can see, this technology is actually hugely useful. If investment is continually made in blockchain technology, we should only see an increase in its usage, and an even wider array of ways that it can contribute to society.
Article and infographic provided by Bitfortune.net