Blockchain Technology is a data infrastructure that is currently the backbone of a new type of internet that attracts the internet business community. Blockchain is an encrypted and decentralized ledger that is programmed to record all financial and digital transactions that have value. This platform is used by Bitcoin, a decentralized, peer-to-peer system that has a digital currency known as cryptocurrency used to pay for goods and services. Bitcoin allows online users to process payments between parties through the exchange of Bitcoins that can be purchased with national money currencies or can be minted through mathematics, algorithms, and cryptography. The blockchain is used to record all of these online transactions.
The blockchain is like a distributed database where spreadsheets of all financial transactions are duplicated across its network with thousands of computers. These networks are designed in such a way that they automatically update regularly. The records and transactions within the network are public access to anyone on the internet and easily verifiable. The advantage of having blockchain technology is that there is no centralized version of the duplicated spreadsheets. It is completely automated with no human decision-making involved. Furthermore, it provides the benefit of eliminating an intermediary, such as banks, retailers, or brokers in any type of financial transaction.
Benefits from Blockchain Applications:
Due to its cryptography base, it is ensured that no malware, hacks, illegal business practices, or phishing attacks will occur. With the blockchain’s unsurpassed security and immutable program that is distributed and duplicated across multiple networks, it has the immense potential to stop a hacker from corrupting the data in any way possible.
Implementing blockchain technology within the financial industry has highly impacted the record-maintaining database systems. It has the ability to support self-enforcing, smart contracts that include programmed conditional clauses for the participants. The transactions will be successful, and the funds will be transferred only when the conditions within the clauses have been met. Such contracts are currently being implemented and executed into decentralized platforms for crowdsourcing and voting where the results are completely transparent and publicly accessible.
What Blockchain Holds for the Future?
The use of blockchain technology has the potential to revolutionize the field of law. Through the use of smart contracts, blockchain technology has the ability to have the smart contracts and the blockchain wills to take immediate effect after a person dies. The executor and intermediary would no longer be needed to carry out the wills. This blockchain technology would rather require a lawyer who has the professional skills of a computer programmer.
Additionally, this technology would be beneficial for car rental agencies. With the usage of smart contracts, the agencies could automatically allow car rentals once the customers’ payments and insurance information have been approved.
This platform could potentially help the online music industry. Musicians often earn on sales due to recording in companies or third-party platforms. Blockchain could be used to eliminate the intermediaries and provide the artist with more control and ownership of the music which leads to keeping the large percentage of sales that the artists originally lost.
Blockchain platforms may also change accounting based on the process of the verification of an organization’s audit. Instead of having a firm keep separate records of transactions blockchain technology can store all transactions into a joint register. This will create a system where all transactions are sealed into an interlocking system where changing the transactions, fraud, or destroying them will not be possible.
Furthermore, blockchain technology has the potential to change the marketing and advertising industry. Firstly, it will remove the intermediaries in digital marketing and advertising creating cost efficiency and transparency for organizations. With transparency, it will be easier for marketers and advertisers to identify the correct target markets. The marketers will no longer be in need to search for consumer information through different sources. All information will be easily found in the blockchain.
Blockchain technology is a vital and useful asset for internet business communities. It can be used to strengthen and reinforce trust and transparency. Through this technology, all information is visible to the consumers, so they can trace and validate each product and party before successfully proceeding with an auditable and secure transaction. This leads to an end to the corruption of data. The traceable transactions will provide an efficient infrastructure to businesses which will massively reduce the costs for all participants within the blockchain. This will lead to an advanced and independent society with transparency, cost-efficiency, integrity, higher security, and no intermediary.