Blockchain: The Growth-Driving Technology
The global economy is on its way to digital transformation, progressing rapidly, and myriad technological innovations that have smashed the old, rigid, conventional processes have set the stage for the same. Talk about any industry, and it would be appropriate to lay a comment that we are on a continuous path of advancement and have come a long way due to the invention and introduction of many ingenious, breakthrough technologies. Blockchain technology is one such robust invention that has already dug deep holes in the transactional environment.
Blockchain is an open, distributed ledger or a decentralized database that is designed to efficiently record transactions between two parties in an easy-to-verify and permanent way. And when we talk about transactions, these are not only the gamut of financial transactions, but virtually everything that has got value.
A blockchain can be technically understood as a chain of datasets of money, digital asset, code, etc. that are grouped together into containers called blocks. These blocks are linked to make a chain, and secured using cryptography techniques. These blocks are continually updated as the transactions keep taking place. Cryptography ensures that records are not counterfeited or changed by anyone else and users can only edit the parts of blockchain that they own.
Interestingly, the technology wipes away the role of middlemen or intermediaries, which comes as a relief to the industry. Blockchain allows entities (people or businesses) to freely transact and interact online with one another with almost no turbulence. In fact, blockchain is one of the only few technologies that has made transactions without intermediaries successfully possible.
Well, this is because the data is hosted by millions of computers simultaneously and everyone can themselves use the system and help run it. There is no central database where records are stored, ie, no central company or person owns the system; and allows transacting entities to verify each other’s facts. This offers a surfeit of benefits to varied industries, who have been eyeing the technology, considering to adopt it. Online transactions could now take place more frequently and efficiently, as the involvement of intermediaries gets eliminated. Then, the payment of third party-fees which is quite often a burden to many businesses, is counted out, and the amount could now be swallowed internally.