Probably the most popular word that’s making rounds in the fintech space is blockchain. Have you noticed the power of this disruptive technology? Being the base for financial services across the world and building the cryptocurrency world, blockchain is significantly changing the way we live, work, and play.
Bitcoin, the most popular cryptocurrency (created by an unknown person using the name Satoshi Nakamoto), introduced us to blockchain technology. It was developed to conduct peer-to-peer electronic cash transactions across the world. As a result, it revolutionized the global financial sector, and today here it is!
Although blockchain technology came to the world as a backend technology for Bitcoin, it just kept growing day-by-day. And the demand for blockchain technology just kept expanding to the crypto space, banking, healthcare, etc.
Let’s make it simple: Blockchain technology is an innovative data storage technology.
By its nature, blockchain can be defined as a digital distributed ledger that acts as a decentralized platform to provide transparency, security, and scalability to all the data added to the network.
Like the traditional ledger, blockchain technology is the virtual ledger that is shared with all the users on the network. Thus, any changes made to the ledger are noted and made available to all the network participants.
For instance, if you update a legal contract or send money to someone, it is cryptographically verified and reflected across the network. This piece of information updated on the network can be witnessed by any participant who has access to the network.
Ultimately, this latest technology has made the job easy by eliminating the need for go-betweens. It solved the traditional complex challenges of the financial sector. One can send money, buy a house, or pursue trading, etc., with very much ease. The smart contracts store the complete information and automate the manual processes without the interference of middlemen. As a result, most industries are now free from high processing fees, time-consuming transactions, and traceability & transparency challenges.
You’ve probably never noticed that you are using blockchain technology in your day-to-day life. But yes, you should care for it. Blockchain technology brought great benefits to both individuals and businesses. But due to the lack of knowledge, we are still unaware of the potential of blockchain.
During the no-blockchain days, the abroad transactions took longer days, which was frustrating. Now that we have blockchain solutions like Ripple’s xCurrent reduced the time and cost of abroad transactions. For the banks connected through a blockchain network, the verification process such as the compliance, ID checks are automatically authenticated by cryptographic signatures. Once the process is done, the transactions are settled in just a few seconds.
Thus, today, the money you send to your friends or family across the globe is powered by blockchain technology.
The traditional process of buying land or a house was tedious. It had exhausting paperwork, high lawyer fees, and too many agencies and banks’ involvement. Thus, lack of trust and time-consuming processes made land registration more difficult.
However, blockchain technology sorted it out. The complex processes were redefined using decentralized technology. The single, transparent agreement with access to everyone on the network had cut down much paperwork, intermediary involvement, and fraud risk. The real estate industry is automating the processes and resolving the challenges using blockchain.
In the U.S, Propy is using blockchain technology to automate the real estate industry. As a result, the company offers fast and secure data storage and management on the blockchain network.
Well, your medical history requires a lot of attention. And for a quick and effective treatment, it is crucial to saving the medical reports. But due to the incompatible systems, and manual upload of the reports, the treatment might get a pause in the process.
Blockchain sorted it out. The technology made it easier to store the medical history with greater accuracy and transparency permanently. Now that clinicians will be able to access the medical history and instantly diagnose the patient. It is also easy to identify and verify the patients and their health records across any hospitals that have access to the network.
Whether you are buying a ticket to watch your favorite band or buying an electronic device on an e-commerce site, everything is verified and is genuine to buy. Everything is monitored, recorded, and verified in every step of your online shopping, from ordering the product to successfully receiving the genuine one into your hands. The information is available to both the seller and buyer without any defrauding activities or misleading interruptions.
The whole buying process is now open, transparent, and secure. Hence your online shopping is all real today!
The big players such as HSBC, Walmart, Airbnb, Uber, Delta, Unilever from various industries use blockchain technology to enhance their services and solutions.
Its decentralized nature eliminated the intermediaries and the additional efforts in almost all the sectors. Soon, we will be able to rent our home or car using this disruptive technology!