Table of contents
Blockchain: "A Famous Term"
Almost everyone has heard this famous term called "Blockchain" but exactly what is it? how is it going to impact our future, and the main question is, Is it worth all the hype, well that's what I am going to tell you.
What exactly is Blockchain?
Blockchain technology is defined as a decentralized, distributed ledger that records the provenance of a digital asset, so that no single person or group has control rather, all users collectively retain control. In simple words, there will be no single authority having control over something.
Now you have a basic understanding of Blockchain technology let's move ahead.
Why is everyone going crazy about this technology?
Bitcoin (Blockchain is the underlying technology of Bitcoin) has seen its value rise from a few pennies to nearly $65,000 at one point. A useless thing does not have that much value so there is got to be something important and "YOU" don't want to miss that. The most common examples of Blockchain technology are Cryptocurrencies(Bitcoin) and NFTs, but Blockchain technology is an ocean to explore.
One of the most prominent and important concept of BlockChain is DeFi (Decentralized Finance) which offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts, this technology eliminates third parties that also saves us spending money as their fees or commissions.
How is BlockChain Technology going to revolutionize our future?
Many people have been confused related to what Blockchain will bring to us and how are going to implement this technology in the real world.
"Following are the few real-world problems Blockchain technology is going to solve."
1) Cross Border Transaction:
Remember we discussed the concept of DeFi above here is one of its practical application. In Cross Border transactions banks, individuals or companies work together to transfer funds. BlockChain uses encrypted distributed ledgers that provide trusted real-time verification of transactions.
Many U.S.-based companies are seeking out ways to streamline their current work processes, so they invest in blockchain technology as a way to boost their bottom line.
2)Anti-Money laundering Tracking System:
If the Anti-Money laundering tracking system is built on the blockchain, it could leverage the inherent qualities of the blockchain to identify and prevent illicit transactions, it could run through a string of data to determine if money laundering activity occurs.
3) Personal Identity Security:
BlockChain enables more secure management and storage of digital identities and provides the same source of truth about which the credentials are valid. No transaction of the user's information can occur without the consent of the user. A person can even identify himself/herself just by scanning a QR code.
4) Voting Mechanism:
BlockChain can prevent voter fraud. As BlockChain is a decentralized, anonymized, yet an auditable chain of record, and is currently present in the cryptocurrency. This same technology could also be used to record and report votes.
5) Benefits In Advertising Insights:
Since blockchain technology stores information and records transactions. Users can leverage it to keep track of ad spending. This provides transparency that other methods can't provide.
So these are a few of the many real-world problems we can solve with the help of Blockchain technology. As I said above Blockchain technology is an ocean you just have to deep dive into it and start exploring its wonders.