Wondering why blockchain is such an emerging technology? If you want to understand the importance of blockchain technology in 2020, you have landed at the right page. This article explains what this technology is all about, focussing on its features and how this technology is revolutionizing industries and other sectors.
Learning Of Blog
- Briefing What is Blockchain Technology
- Importance of Blockchain
- Which Sectors are Leveraging Blockchain?
Briefing What is Blockchain Technology
Blockchain, as the name suggests, is a chain of data “blocks” stored on thousands of computers or servers distributed over a wide geographical area. It is a decentralized ledger tracking of one or more digital assets on a peer-to-peer(P2P) network. P2P is a decentralized network where all the computers are connected in some way, and each maintains a complete copy of the ledger.
Blockchain is gaining popularity in almost all sectors, and this is due to the peculiar features that it offers. Be it the government sector, startups, or top MNCs; almost all industries are leveraging this technology because of its potential to revolutionize the tasks.
The exciting potential of blockchain has transformed how businesses and industries function, paving the way for blockchain professionals. If you want to take your career in blockchain space, check out the best blockchain certification courses and become a certified blockchain professional.
Importance of Blockchain
To understand the importance of this technology, we need to understand its key features as these features make blockchain irresistible in several scenarios and mark itself as the best possible solution.
Transparency is one of the significant issues in the current industry. Although to improve it, organizations have attempted to implement more rules and regulations, but there is one thing that doesn’t make any system completely transparent,i.e., centralization. But with the help of blockchain, organizations can go for a complete decentralized network where there is no need for a centralized authority, improving the transparency of the system.
Blockchain is immutable, meaning nobody can modify the data over a blockchain. This feature enables companies to ensure that there is no hamper of data, making their system more functional in a highly competitive market.
As we already defined blockchain as a decentralized system of peer to peer network, thus it is highly available due to the concept of decentralization. It offers decentralized services that provide unique access to the options that are otherwise unavailable.
Unlike traditional databases, blockchain provides a high level of security to its users. High security is due to the cryptographic algorithms which are being run behind the blockchain. Rather than trusting any individual or third party, in the blockchain, one needs to trust only cryptographic algorithms.
Traditional banking organization takes a lot of time in initiating and processing the transactions and is prone to human error and often requires a third-party intermediary. Blockchain can streamline and automate the entire processes without any human intervention and with complete accuracy.
Reduced Transaction Fees
As blockchain removes the involvement of the third party, it eliminates the overhead cost of exchanging the assets; thus, it leads to reduced transaction fees.
Which Sectors are Leveraging Blockchain
Now, as we have understood the importance of blockchain technology, let’s explore which industries are utilizing blockchain for good. Although there are several sectors, here we are focusing on the top 5 sectors.
Supply Chain Management
Blockchain can be implemented to overcome challenges in the existing Supply Chain industry. From complicated record-keeping and tracking of products to producing a less corruptible and better-automated alternative to centralized databases, blockchain can be seen as a one-stop solution that can revolutionize supply chain processes.
In the automobile industry, blockchain is tracking and verifying automotive parts. The technology is accelerating data sharing services, helping in maintaining a tamper-proof log of all records such as service logs, details of wear and tear of spare parts, etc. that is helpful for manufacturers to estimate the actual resale value of the vehicle.
In the healthcare domain, blockchain can be leveraged to create secure and effective technical infrastructures for enhancing coordination and quality, thus improving the wellbeing of individuals and communities. Moreover, the blockchain platform allows the patient to control who gets access to their medical records.
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Blockchain in the finance domain facilitates bilateral settlement by eliminating intermediaries’ failures, collateral costs, delays, minimize credit risks, faster implementation of transactions, enhanced transparency in operations, amongst others.
The rise of blockchain has been remarkable, and the technology is facilitating newer ways to revolutionize businesses and industries. But blockchain mass adoption is still in its fantasy.
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