You must have heard about the Bitcoin – a virtual currency created in 2009 and currently being used to make online payments. Bitcoin applies peer to peer transactions that implement a blockchain technology. So, what is blockchain technology? Well, it is a relatively new and rapidly developing concept. Blockchain is a type of distributed ledger that contains unchangeable digital data recorded in packages referred to as blocks. These blocks are stored linearly, and each block in the chain comprises of data that is hashed using cryptography. New blocks are created from the already existing ones in the chain which ensures that data in the entire blockchain cannot be modified. Although initially developed to track bitcoin transactions, blockchain technology, which uses distributed ledger systems, is increasingly becoming an inspiration for other entrepreneurial applications today.
Currently, the blockchain technology is mainly used to authenticate digital currencies transactions and to code and document them into blockchains. By so doing, indelible records that cannot be modified are created. Record authenticity can, therefore, be validated by many people using the block chains instead of depending on a single centralized verification authority.
Blockchain technology helps in costs savings. Distributed ledger systems used in blockchain technology enable businesses to streamline processes, which as a result, reduces expenses and delays brought about by traditional techniques of reconciling records. Resources such as an Apache Kafka tutorial can help us to learn more about big data and lead to a better knowledge of blockchain technology. Resoures such as this will walk you through the installation of the open source program and integration with big data to offer real-time visibility of your business. Blockchain technology is cheaper since electronic ledgers are more affordable to maintain compared to conventional accounting ledgers. Electronic ledgers are not prone to errors and therefore result in fewer mistakes and reduce records redundancy. The technology dramatically lessens processing delays which means faster services processing for users
The adoption of the blockchain technology is going to bring enormous transformations to the success of any enterprise. For instance, the financial services industry is one of the sectors that is at the heart of the commercial marketplace. With blockchain, financial institutions will be able to increase value. They will be able to develop, store, exchange, lend, fund, invest, insure as well as securely account for value that will be able to penetrate new markets and reach the unbanked population. Adopting blockchain technology in banking institutions will enable instant, secure, and accurate transactions. Financial institutions will be able to dramatically reduce errors and reduce costs thereby creating a more secure industry.
In accounting, adopting blockchain technology will allow error-free recording. Traditionally, firms use expensive auditing firms that perform double-entry bookkeeping. With blockchain, organizations can implement distributed ledger accounting systems that provide time-stamped records acceptable to business stakeholders ensuring secure and error-free documents.
With the internet of things looking to connect nearly all objects to the Internet, the Blockchain technology will be needed to keep track of secure device communication. It will enable new models which will enhance interactions among connected objects.
Adopting blockchain for government agencies will offer transparency between governments and citizens. By facilitating asset digitization, blockchain technology will drive the shift from an informed view and communication to real value where there will be instant, secure asset exchanges. It will disrupt all industries that depend on finance, banking, insurance, real estate, legal, education, healthcare, and more. Blockchain will facilitate issuing, logging, and recording of all business transactions across all industries. It will enable smart contracts, cross-border payments, secure trading, allow transparency and traceability of intellectual property, loyalty, and rewards, digital voting, and more.
There is no doubt that blockchain is a disruptive technology that will revolutionize the global economy. It will facilitate secure and transparent exchanges. The faster the world adopts blockchain technology, the quicker we will create secure digital transfers and boost entrepreneurship.