Blockchain is an undeniably ingenious invention. It’s an open distributed ledger that records transactions between two parties. It is an efficient mean and works in a verifiable and permanent way.
It is typically managed by a peer-to-peer network collectively adhering to certain protocols. Information in any given block can’t be altered retroactively without the presence of consensus of the network majority.
Its invention has resulted to the first digital currency solving the double-spending problem without the need of a trusted central server. The emergence of private blockchains has also been proposed for business use.
With this, it’s creating a backbone of a new type of internet. The data in it is managed by the cluster of computers disowned by any organization. Due to lack of the central authority, makes it be defined of a democratized system. Whatever information built in this technology is transparent in nature thus efficiency in terms of accountability.
It is usually a simple and ingenious way of transferring information through automation. The process carries no cost of the transaction and is also secure.
Blockchain not only transfers and store money but also replace all processes plus models of business relying on petty transaction fees. Some of the results of blockchain technology include the trending use of Uber. It’s simple by just encoding transactional information for a car ride which is really challenging the traditional economy.
It’s important since it not just reduces middlemen fee of processing but also eliminating the need for such a platformÂ
Pillars of blockchain technology
Decentralization and transparency are the main properties of blockchain technology.
- Decentralization—unlike centralization where systems have a core authority dictating the truth to th other participants in the network, decentralized systems lack it. However, every participant in the chain can access history of transactions or confirm new ones if any.
- Transparency—some know that blockchain assures privacy whereas some say it is transparent. It only hides a person’s identity through one will access all the transactions done by their public address. It’s a new level of transparency within financial systems. This credits some of the biggest institutions in terms of extra accountability.
Blockchain is giving most internet users the ability to create value as well as digitalized authenticity of the information. For the businesses, they will be impacted in terms of, smart contracts, governance, sharing economy, supply chain auditing, market predictions, internet of things and protection of intellectual property.
For instance, the use of Uber is a proven success. It’s done by enabling peer-to-peer payments which promote direct interaction between parties thus resulting in the decentralized sharing economy.
Again, fully publicly accessible results could bring transparency to elections taking place. This enables an entity decision- making happen on blockchain thus promoting governance in the management of digital assets, equity or information.
Moreover, currently, consumers are curious about real ethical claims companies make about their products. Through distributed ledgers, via blockchain, it’s easy to certify that backstories of purchased items are genuine.
Through the internet, digital information can currently be infinitely reproduced and distributed widely. It also contributes to the mass-scale automation of management systems.
In conclusion blockchain is bringing everyone into the favorable degree of accountability. Fewer errors are expected as well as no more missed transactions. The technology is guaranteeing validity of transactions through a connected distributed register system.
