If you’ve been following cryptocurrency, banking, or investing over about the last few years, you’ve most likely heard the term “blockchain” several times. It refers to a technology whose rapid progress is showing no sign of slowing down and will potentially disrupt almost all industries before long. Keep reading for detailed information on what this emerging technology is and why it matters.
What is Blockchain?
Blockchain is a secure, decentralized digital ledger that records data or blocks in chronological order. Once the data is recorded, no one can alter it without the permission of the majority of the participants on the network. Since many entities hold, use, and manage the ledger, it’s almost impossible to modify the transactions.
Since blockchain’s inception, it has been transforming the world in significant ways. A team of experts or an individual that goes by the pseudo name Satoshi Nakamoto conceptualized the first blockchain in 2008 and launched the initial code in 2009.
When Nakamoto posted their whitepaper, they explained in detail about the plan to design a decentralized, secure means to mine and distribute Bitcoin, the leading digital currency. Currently, the coin’s market value is about $1 trillion. The crypto market cap is approximately $2 trillion. Moreover, blockchain technology has underpinned thousands of cryptocurrencies, and almost all industries are in the process of adopting it to remain in the market.
Why Does Blockchain Matter?
As already indicated, blockchain has several practical applications. Banking, supply chain management, and health care are examples of industries using it to manage critical data, record information, track supplies, trace the origin of supplies, and more.
Read on for crucial reasons various industries are adopting blockchain.
- Ensures Immutability: In the present highly competitive market, many companies are looking for solutions that can make their systems reliable. For example, companies in the supply chain industry want their packages to remain safe in transit. Blockchain offers this and alarms the system in case of any attempted alteration.
- Guarantees Transparency:Since public blockchain is accessible to everyone, it’s useful for various functions like conducting elections. Companies can also rely on it to ensure their customers interact with their processes.
- Ensures Decentralization: Our futurist society is geared towards becoming a fully decentralized economy. Every industry needs to offer decentralized services to remain competitive and meet the emerging needs of its end-users. The music industry can benefit when the artists reach out to their consumers without waiting for the approval of a centralized entity.
- Increases Cost-Effectiveness: With the elimination of the centralized authorities comes improved cost efficiency. Blockchain technology eliminates the need to hire people to do the paperwork and manage human resources. Besides, due to enhanced security and processes, you save a lot of time. Transactions take seconds instead of days or weeks to complete, saving you time and money.
- Provides Digital Freedom: Freedom is one of the most fundamental human rights. Blockchain grants you this, as it allows you to take complete control of your assets. Centralized entities help us access essential services, but they take away our freedom to make independent decisions. For example, your bank can terminate your account without notice and limit your ability to make more money. Sometimes, they rely on subjective data to make such decisions. On the other hand, blockchain technology relies on objective data and gives you the digital freedom you need to lead a humane and productive life.
Now you know what blockchain is and why it matters. Satoshi Nakamoto conceptualized it. Due to the technology’s efficiency, it has been disrupting many industries since then. So, blockchain is the backbone of our juristic society. That should matter to you if you have long-term plans.