Blockchain technology is starting to gain a lot of popularity. People from all over the world are taking interest in this. Especially because of cryptocurrencies like Bitcoin. But it’s not all about cryptocurrency. Blockchain is a type of technology that allows a way to store data securely. Data is separated by blocks. These blocks are linked in a chain. And each block is protected by a security code based on the previous block. Simply put, blockchain technology uses technology to send payments without involving any financial institution. Bitcoin is also based on blockchain. It is a type of digital currency that works because it uses blockchain technology. There are four types of blockchain networks.
- Hybrid Blockchains
- Private Blockchains
- Consortium Blockchains
- Public Blockchains
But despite its popularity, most people have a lot of misconceptions about its uses and benefits. But don’t worry. Here’s everything you need to know about blockchain
Blockchain is Different Than a Database
The first, and most important difference between a traditional database and a blockchain is the way data is organized. Blockchain technology gathers information collectively in groups that collect sets of information. On the other hand, a typical database organizes data into tables. But blockchain uses blocks instead. After a new transaction is entered, it is then transmitted to a network of peer-to-peer computers. Following this, these computers confirm the transaction’s validity. With this, the transaction is complete.
Blockchain technology has a lot of real-world uses. These include:
- Processing payments and transferring money
- Monitoring supply chains
- Protecting copyrights and royalties
- Transferring real estate, land, and auto titles
- Organizing Internet of Things networks
- Speeding up energy futures trading and compliance
Blockchain Technology is Mostly Decentralized
To really understand blockchain, it is important to view it in the context of Bitcoin. Bitcoin’s blockchain is used in a way that requires decentralization. Another reason why blockchain fascinates so many people is Decentralized Autonomous Organizations (DAOs). Blockchain technology allows for its development and this creates values. That too without any humans intervening. Moreover, management teams are not required to take any action or make decisions. Also, the transactions are run by code. Moreover, smart contacts can also be used easily and with efficiency. Similar to efficient usage with spectrum promotions and Spectrum internet services. It has been predicted that blockchain will impact the following verticals the most.
- Supply Chain
It Enables Digital Freedom
In today’s age, digital freedom is very important. This is because almost all activities and transactions take place online. Because of growing digitalization, it is also easier to control digital freedom. Several centralized bodies such as banks can compromise this freedom. Even if they offer a lot in terms of economy. Banks can make decisions that regard you on their own. They can stop transactions or slow down activities. But with blockchain, this is never the case. And that’s possible because there’s no centralized authority. Moreover, blockchain technology makes you your own bank. This means you have complete control over your interactions, actions, and transactions. This level of digital freedom relies heavily on blockchain technology.
Blockchain Increases Security
With blockchain, there are fewer chances of data leaks and hacks. As the digital space is growing, so are the number of hackers and fraudsters. There are a lot of chances of malware attacks, hackers, and viruses. IIn the past, a large number of businesses and companies have experienced major data leaks. But this problem is solved with blockchain technology. There are higher chances of safety and fewer chances of security threats. With this technology, data is always secure, so much so, that there is very little chance of your data getting hacked or leaked.
Its Role in Business and Health
A lot of sectors benefit from blockchain technology, but health and business are truly helped by this. The business sector benefits from blockchain in the following ways:
Economic Advantages: Businesses get better operational costs and less infrastructure and transactional costs.
Greater Authenticity: Financial institutions are helped by bringing data integrity. Along with this, there is also proper authenticity in systems.
Streamlined Process: Blockchain technology helps businesses also by enhancing operational efficiency. This includes the ability to perform real-time settlements. It also helps with reporting and audit.
Programmable Benefits: This enables all business logic to be coded. For instance, this can include identity, compliance, and data privacy.
Blockchain also enhances the healthcare sector. Currently, this field lacks control and organization. Record keeping is a lengthy process that requires time and effort. And all of this is needed when patients need urgent care. But blockchain can help healthcare in the following ways:
- Patient consent organization
- Secure electronic health records (ETRs)
- Data security of clinical trials
- Incentivizing micropayments
In today’s world, a lot of companies are responsible for the promotion of blockchain technology, like Mythical Games, Robinhood, BitMEX, Celsius Network, and Coinbase, to name a few.