Blockchain is the distributed, shared ledger system with no central authority. We have all encountered ledgers in our lives. We have our own personal ledgers for keeping track of transactions. But in the case of a large business scenario, the number of transactions is huge. The number of people keeping track of those very transactions is huge too. Each person involved in the business might have their own version of transactions. Blockchain solves this problem by each ‘node’ having their own copy of the ledger.
It should be noted that even though Bitcoin and Blockchain seem to be mentioned in the same breath, Bitcoin is entirely different from Blockchain. In fact, Bitcoin is a cryptocurrency based on Blockchain technology and has no other common feature with Blockchain.
The mortgage industry, the car auction network, the banking industry are all industries that are thought to be transformed by the Blockchain saga.
So, what are its advantages?
Buying a home is a lengthy process. The loan approval procedure is quite long. The paperwork takes a long time to clear but by employing the blockchain technology , the time is reduced and one can own a home quickly enough. Hence, the blockchain technology is much more time efficient and this in turn reduces the financial costs too.
2. It is more transparent
In the supply chain cycle, one does not know where a particular produce has come from. What if it could be tracked and we know where our apples came from? This could be actually be possible by means of Blockchain technology…
3. It is absolutely secure
Well, not absolutely :)…. but the Blockchain technology is much more secure than our normal centralized ledger system.
4. No central authority
The blockchain network is decentralized and and having no central governing authority is good. By not having a central authority, there is no need of any hierarchical need to approve transactions.
Having seen what blockchain is, join me as I traverse more on the A to Z blogging journey….
The previous post for the A2Z challenge is here….