Data and record keeping across diverse sectors in the world has always been a challenge, one reason for this could be the easy manipulation and mutability that could occur or the possible threat that might show up against the data stored.
In this effect, blockchain technology can be considered a recognisable solution to this problem because with the decentralised structure, data is more secured and safe. Introduced in 2008, blockchain technology has inarguably been impactful and its value, limitless.
What is Blockchain?
Blockchain is a decentralised, public ledger that processes and records transactions across different servers making it impossible to cheat the system. However, this distributed ledger only makes transactions made with cryptocurrency successful.
Typically, blockchain is like having several blocks representing records, being connected together through a peer-to-peer network across various servers to complete a particular transaction. Meanwhile, blockchain technology is open-source and enables decentralised operations to be built on it.
Impact of Blockchain Technology
Blockchain has enabled businesses (new and old), society, finance, technology, etc positively in different ways. These impacts are listed below:
- Payment Ease: blockchain has made it possible for industries to earn more as a result of the approval of cryptocurrency. Also, this added payment option is easier, faster and acceptable across borders.
- Data Security: companies that rely on the blockchain technology understand that it is a decentralised system that can not be tampered with. In this regard, information stored on the database is thereby safe.
- Smart Contract: this is a string of codes that underlines the rules for transaction for each parties to abide to. This code is self-executing and the terms is agreeable by both parties.
- Business-customer verification: operations on the blockchain are open and with proof-of-stake mechanism, transactions are first validated before completion. This could also be seen as a KYC process on the blockchain where trust is created
- Protection and privacy: records of both parties are equally protected and can not be invaded by a third party. Also, end-end encryption is authorised on the different blocks created for transaction.
- Less expensive: this system is less expensive because it is not controlled by Governmental institutions. This makes transaction charges less compared to the traditional method