Blockchain simply, is a digital, decentralized ledger that keeps a record of all transactions that take place across a peer-to-peer network. It’s a list of records that are linked using cryptography. The major innovation is that the technology allows participants to transfer assets across the internet without the need for a centralized third party. Blockchain enables digital information to be distributed but not copied. Blockchain can become so valuable in the corporate world because it can record practically anything of value.
How Blockchain Technology Works
In this technology, records are called blocks, and each block contains a cryptographic hash of the previous block and transaction data. This block is then verified by thousands or millions of computers around the net. The block is then added to a chain that is stored across the net.
A blockchain can record transactions between two parties in a way that they can be verified and cannot be altered by modification of the data. The process creates secure records that are resistant to modifications and have their own unique identity. The modification of even one record would falsify the whole chain.
Creating blockchains is free, enabling companies to replace costly business models and charge a smaller fee per transaction. All transactions are time-stamped and managed by a group of computers not owned by any singular entity. Your identity is always well hidden by cryptography. People in your network can only see your public address. Less of your life will be controlled by individual 3rd parties.
Blockchain in Finance
Blockchain technology is expected to change the world of finance soon. Can you imagine a day in which banks no longer held your money but existed only to advise you. With blockchains, records of transactions can be visible to all parties at the same time, and they are always available to anyone involved. This transparency may make some people nervous but remember that blockchains make records virtually impossible to change or modify, so no one will have the ability to tamper with them.
Blockchain in Healthcare
In Healthcare, Blockchain uses are being discovered almost every day. It promises to improve access and storage of medical records. Track drug manufacturing and clinical trials made by pharmaceuticals companies. Eliminate fake drugs from entering the market thus, eliminating the risk of patients receiving dangerous substances that could be fatal to them. It also has the potential to improve interaction between Patient-Doctor by easily providing access to patient medical records.
Blockchain in Government
In Government, Blockchain validates all participating parties providing transparency, auditing and thus reducing bureaucracy and increasing efficiency. Another section Blockchain implementation in government is n voting. Imagine that everyone has his unique digital identity created with blockchain and every vote can’t be manipulated or not counted. This would probably bring back full citizen trust in election voting procedures and closer to democratic ideals.
Blockchain and cryptocurrencies
Cryptocurrencies emerged because of blockchain. Remember Blockchain uses cryptography, hence the name Crypto-Currency. Some popular cryptocurrencies are Bitcoin, Ethereum, Litecoin and Libra from Facebook.
The Future of Blockchain Technology
If society and corporations adopt this technology everything will be more transparent and verified. No one will be able to falsify records and probably past falsifications will come to surface, raising oppositions for this technology.
So, one question remains. Are societies, corporations and individuals ready to be transparent and responsible in their daily digital life transactions?