Meet Blockchain Technology
The blockchain industry, despite its more than ten years of life, is still relatively young. Technology is developing at a dizzying pace, its popularity is growing, and as a result, more and more people are beginning to understand its enormous impact on every aspect of our lives. While innovative mechanisms may seem complicated, their use is in many cases clear and logical. This article will allow you to understand the basic aspects of this technology, its advantages and assumptions. The sooner you meet her, the easier it will be for you to find yourself in the new, digitized world.
Blockchain – What’s hidden under this name?
In three words, it is a distributed database that contains information about operations carried out in a given network. In literal translation, “blockchain” means a way of storing digital information in interrelated blocks, which effectively prevents counterfeiting. Cryptography is used to overwrite subsequent information, and most of the processes in the network are automated.
A number of advantages of blockchain technology:
- Lack of central management – The database is dispersed among many network users, thanks to which there is no fear of data loss, e.g. as a result of a server room fire or a hacker attack. The need to involve third parties in verifying the reliability of information has also been eliminated, which allows for cost reduction.
- Transparency – The data register is public and anyone has access to it. You can check each record, its value and time at any time.
- No data manipulation possible – Copies of the database are scattered around the world and constantly updated. Any attempts to manipulate the records will be detected when the transaction is verified by other network users.
- Open network code – The explicit code of the blockchain network gives everyone the opportunity to verify that there are disturbing mechanisms that allow manipulation and fraud. Many blockchains also allow you to make changes to the code, improve it and add new utilities after prior agreement of most network entities.
And many others…
One technology – many applications
Online payments have become an integral part of our lives. We are making transfers or reaching for credit cards more often than for cash. The evolution of money is proceeding at a dizzying pace. An example would be payment methods made possible by blockchain technology. Its derivative is cryptocurrencies, which can often be sent in a few moments without incurring large commissions. Payments on the blockchain network are fast, cheap and secure. Another advantage is 24/7 availability, which is currently not possible for bank payments.
When it comes to finances, more and more banking institutions are using this technology to settle accounts between separate banks, thanks to which their clients are served much faster and the involvement of many employees becomes unnecessary. In addition, bank records are stored in a much more secure manner.
The above utility is the most obvious, however blockchain is now used in most areas of our lives:
- This breakthrough technology allows you to simplify many sales, logistics and financial processes, thanks to which it works great on the energy market.
- In the field of insurance, it contributes to a more efficient conclusion of contracts, avoiding unnecessary documentation and additional costs.
- It is widely used in healthcare, enabling doctors and other healthcare professionals to quickly, safely and easily access patient’s medical records. Regardless of the place and course of treatment, all documentation in one place is available to authorized persons.
- Blockchain technology fulfills its role wherever it is necessary to confirm and secure property rights. The music, graphic or artistic industry is gaining a reliable record of copyright and allows for easier accounting for artists for using their works.
- The sale and rental of real estate in a traditional model is associated with extensive papermaking. Thanks to blockchain technology, the process is simplified to a minimum of formalities, and the use of intelligent contracts eliminates the need to involve additional entities.
The development of this technology is progressing rapidly. It is hard to disagree with the statement that this is a technological breakthrough in many sectors. Successive countries are working on legal regulations to enable its legal use to an even greater extent. In our opinion, in the near future, each of us will have contact with her in everyday life, so it is worth to deepen knowledge about her now.