Blockchain technology uses dispersed or decentralized ledgers to keep transaction records. A peer-to-peer network ecosystem contains the records. The peer-to-peer network confirms the transactions through its valid participants.
The transactions are not required to be verified or concurred by a Central authority.
Trade settlements, voting rights or money transactions of any sort, is not required by the central authority.
The many varied Importance of Blockchain Technology
1. Security — Why Blockchain is important?
Safety and privacy is the main concern for each and every kind of digital work or activity. Because, huge cache of data is stolen or leaked in the digital world. Here, Blockchain comes to aid as it provides a very great sphere of security. This makes it impossible to break-through by anyone because of its’ dispersed nature.
Blockchain is a very transparent and unsophisticated technology in the respect, as everything is in complete view of every participants from the start till the end. Thus, making it a very open technology. This, also lessens the opportunity for any kind of misadventure in the system because everything is out in the open.
Blockchain technology is the most suitable and inexpensive financial model available at this point of time, anywhere. Comparing it with traditional economic models, it is also very cheap. Using this technology saves a lot of costs, thus, it is beneficial to many industries, especially banking industries.
4. Fast Transactions
Transactions done using Blockchain Technology are very fast. Just as you blink your eye, within a minute, exchange of financial data documents and money takes place. There is also no lag time.
5. Increased Financial Efficiency
No third-party is involved in blockchain, therefore, a huge amount of intermediaries cost, is saved. Direct transactions take place between the participants. Also, blockchain technology, helps industries increase their financial efficiency.
6. Smart Contracts
A smart contract requires already set, specific situations and conditions to be fulfilled. These conditions when met, it works to execute automatically the predefined tasks.
Decentralized system forms the basis of the smart contracts that exist between all valid parties. One doesn’t require to pay middle-men, hence, saving time and conflicts. The aim of smart contracts is, lessen the cost of the transaction and provide greater security. It also greatly enhances the speed of the execution of the transactions.
7. Fraud Protection for Businesses
Due to great transparency, any kind of fraud can be very easily found out. So, any kind of fraud cannot stay hidden and these businesses are protected from fraud always.
8. Internet of Things
The identity of all devices and privacy of information of these connected devices has become very critical.
Blockchain Technology, easily manages Data Privacy, Ownership Protection and huge volumes of data. Thus, the problems of device identification and privacy of information is addressed.
It also forms a base for the development of new services like automatic supply chain.
9. Scope of Innovation
Blockchain is open and programmable, hence, has a lot of scope for innovation. It thus, reduces bureaucracy levels as it is transparent and efficient. Blockchain also helps in rebuilding systems in various fields, thus, giving scope for innovation.
10. High Flexibility of Usage
Blockchain is a highly flexible technology in terms of usage, due its various features.. The cryptography used makes it very useful for the working of the transaction in a logically great manner.
11. Confidential Digital Presence
To secure secret online details and other data and also to have complete control over who is eligible to access how much data. The adoption of this technology has been done in the healthcare industry
12. Restricting Data Breach and Hacking
Using blockchain technology, makes digital data and other records very secure and safe. Thus, there is no chance of any type of data breach or hacking. People have lost trust in the traditional systems, due, various data leaks. This is to a great extent restored using this technology.
13. Various Applications of Blockchain
Some of the many opportunities in Blockchain includes Digital Currency, peer-to-peer network, Micro-finance, Remittance, Global Payments, E-commerce, Smart Contracts etc.
Some of the other possibilities are use in Records Storage, Digital Rights, Intellectual Property, Voting, Ownership, Healthcare, Securities and Equity markets.
14. Online Footprint
The details of each and every digital asset can be traced back to the beginning, it is of great help. It comes as a huge benefit to specific industries such as the Banking sector or even the Healthcare sector.
In healthcare, a person’s health condition can be tracked. It can be found of if the person had any previous diseases and can be treated likewise in a more appropriate manner.
In banking industry, transactional nature and financial stability of a person can be traced. This will, thus, help the banks in deciding whether to pass a loan or provide its services to the concerned person or not.
15. Financial Privacy
Financial security part plays a big role in the building up of various new cryptocurrencies like Bitcoin and Ethereum.
The very logic behind this is, to keep the economic ownership data, confidential and private. To make it un-accessible to any individual whosoever other than the person who holds the account.
Concluding Note — Why Blockchain is important?
We know that the world is developing and changing very rapidly. Various modern technologies like blockchain, AI, cloud computing, machine learning, and big data have come into prominence in various countries including India. These technologies have benefited India and the other countries in a very healthy manner.
The advent of the blockchain technology has changed the technological landscape for good. It is now unto the individuals to realize its full potential and unto the industries to implement this technology in their standards.Thus, people should become more proactive to reap the benefits of this technology.
Thus, with the hope to have cleared your doubts about Blockchain Technology, I bid you ta-ta.