Blockchain Reshaping & Redefining The Banking Industry
"The blockchain is the financial challenge of our time. It is going to change the way that our financial world operates.� – Blythe Masters The blockchain is one of the most secured networks conceived technology mechanism of trust. With bitcoin, it has overcome the initial infancy phase to impact all sorts of financial transactions. It has a widespread usage of cryptocurrencies. Also, its technology is now revolutionizing all leading industries. As per global research on the use of blockchains, the primary beneficiary was the banking & financial sector with 30%. The other primary beneficiaries are the Governments and Insurance with 13% and 12% each. As per the following words of Fred Ehrsam, the reach of blockchain is going to be tremendous in the future. "Everything will be tokenized and connected by a blockchain one day." The primary advantage of the growing blockchain technology is its adoption by more than two billion unbanked people. These people living around the world stand to benefit financial inclusion by blockchain. The minimum costs, lower risks, and less verification for transactions make it more optimal than banks. Healthcare around the globe can be digitalized using blockchain technology. The EHR or the Electronic health records and HIS or the hospital information system is the fast-growing digitalizing techniques in health care.
Blockchain with IoT could make them easily possible and for its fast implementation for making this world a better place. From smart digitalized contracts in legal and insurance firms to more intelligent metering systems for the energy sector, it is now in all industries. It enables farmers to get a better price for their products throughout the supply chain and also real-time data for optimal harvest. Its impact on businesses has moved from B2B to B2C with its rapid growth.
What is Blockchain? In the outset, blockchain gets positioned as an alternative to traditional banking mechanism. It has raised the possibility of a revolution in the world of financial technology and the way the money gets controlled. Nine years since its inception, its growth is phenomenal and holds a great future for the entire world. Blockchain can be described as a shared, distributed ledger to provide the whole history of an asset by digitally recording and linking transactions together. Any transaction is only added using consensus protocol after properly validating it. It ensures the truthfulness of the transactions, and each record gets encrypted for additional security. Immutability is one of the core features of blockchain technology. It is because of its decentralization and, available in many ledgers in different locations. It makes even a prudent hacker fail because of the impossibility of hacking thousands of computers to alter blockchain records. The blockchain is a technology that facilitates trust and truth between trading partners. The ability of blockchain to enable all participants to have access to the same version of the truth brings in the fact of the transaction. Trust is because of the confidence of all transactions to be completed.
How does the Blockchain Work? Blockchain uses a ledger system that maintains and tracks all transactions. It is not stored on a central server like banks, but to the USP of blockchain or a decentralized system. This ledger file is stored on private computers to perform computations. These individual systems are across the world and allow everyone to see other's transactions. There is no need for any security threat by this because of its special mathematical functions and implemented codes. Also, each wallet gets protected with a cryptographic method with a unique and connected distinct pair of both public and private keys. All these features of blockchain technology enable specific functions and advantages. In addition to all these, Blockchain Can Help You To Secure IoT Data. Therefore, it becomes vital for all of you to become aware of this wonderful innovation.
Benefits of Blockchain The main features for the benefits of blockchain are as follows
Distributed:
Numerous copies of the ledger get distributed in multiple places. Any new transactions get added to the ledger after getting broadcasted to a brand network of participants. For having security, everyone's ledger contains identical information by the designed system.
Immutable: Due to its multiple copies of the ledger, it maintains an accurate history of the transactions. And also it makes it near to impossible of altering or deleting or adding any false information. Also, it entirely avoids any chance of hacking altogether.
5 Benefits of Blockchain For those who master this game-changing blockchain technology, there are numerous benefits which include:
1. Security: For traditional people, the first and foremost concern would be the security of their hard-earned money. Any way for a new concept like blockchain should provide with utmost safety possible. The following features of blockchain make the best of protection by all standards:
It has better security than any other record-keeping system as of the date Any modifications or updating in the shared documentation of transaction is only possible with consensus on a blockchain network The information could get edited only when the majority of the nodes agree to it All the approved transactions are encrypted and connected to the previous transaction. Any individual or party can have the potential to alter or update the record because of its decentralization.
2. Transparency: Transparency gives the assurance of anything in this world. Only valid and trusted allow total transparency. Blockchain makes a transparency of transaction histories than any methods or technologies. It gets done in the following, among other ways:
Being a distributed ledger, all nodes in the network share a copy of the documentation It is easy for everyone to view the data on a blockchain ledger Everyone in the network can see all the changes and the updated record All the currency exchange information is available to all
3. Efficiency: Only efficient technology could sustain the test of time. The following are the ways that blockchain proves its efficiency:
Human errors and third-party mediation of traditional paperwork gets eliminated It streamlines and disciplines the legacy methods to remove the risk of mistakes to make trading efficient and fast With only one ledger in use, the need to maintain multiple documents gets avoided Everyone accessing the same information gains trust and truth Settlements are seamless and effortless without the need of any intermediaries
4. Traceability & Audit Ability: The recording of goods exchanges forms an audit trail with blockchain to prevent frauds. It enables to track products even in complex supply chains to their origins. Also, the full journey of the product with all its stops can help to verify the authenticity of the products. With the audit trail, the audit ability of the product for its full life in the blockchain gets recorded.
5. Cost Effective: Any new technology should be cost-effective to be successful. Blockchain with all its latest and best features reduces costs in useful ways, which include:
No intermediaries and middlemen save enormous costs for businesses. Trust is the primary factor of blockchain it does not need any rules, policies of exchange to save costs Documentations and its revisions value gets saved as everyone gets a view of the ledger
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