In the world of money transaction, where even a small aspect of the process is crucial for the whole business. To understand better blockchain, it is a simple digital platform for recording and verifying transactions so that other people can’t erase them later no any third person can see them. That means you can only write to it, you can’t delete or erase it. Blockchain is considered to be the most promising feature. It is something like a bookkeeping system, for what “the blockchain” is mend to be.
But there is a concern about the Bookkeeping tools generally require a bookkeeper, but with the blockchain, there is no head honcho bookie. Blockchain is a decentralized and crowd-powered spreadsheet that is relying on cryptography instead of a central authority.
The blockchain technology is created to fuel Bitcoin. It has genuine potential to tip power dynamics in various sectors such as banking, politics, the internet, and everywhere authorities, well, authorize things. But critics see it as either hopelessly impractical step towards ruthless, lawless pattern of fintech.
Impact of Blockchain
If you keep interest in fintech, then you’re already well familiar with the hype machine known as Blockchain. But, it is noticed that there are still plenty of folks who have either never heard of the Blockchain or misunderstand the technology and it’s potential.
Even if you’re not involved with fintech, then also it has the potential to impact your life both personally and professionally as it is going to be the next thing that going to buzz in every corner of globe. And, that’s why it’s important to know its past, present and future.
Purpose of Blockchain?
The blockchain record helps to provide transparency for transactions and thus help users to feel safe and protected. Currently there are many bitcoin transactions are in some ways unidentified, thus the blockchain ledger can link individuals and companies to bitcoin purchases. And this can be done by allowing individual parties, called miners, to process payments and verify transactions.
Rather than a central company governing over the use of bitcoin. When we say blockchain it is actually composed of single transactions known as “blocks.” Where each block links together to forms a complete bank history of transactions. The best part of it is that once a block is linked, it cannot be edited. The blockchain originators serve central roles in the management and administration of this alternative currency system.
Being in trend the blockchain is constantly evolving and can extend beyond cryptocurrency. Before we get much further, here are a couple key pointers to about blockchain:
- It can transfer value or information in a secure manner and facilitate, as well as track, “Smart Contracts.”
- Provides almost instant, secure, and borderless transactions and allows the end user to interact directly with the ledger.
- Removes intermediaries and reduces the cost of transferring value of money anywhere in the world for next to nothing.
- Can automate payment protocols that are enduring and irreparable.
Level of improvement
Talking about the new possibilities this technology is offering blockchain is a peer-to-peer system. That means that concept of “simple two party only” could be a real game changer. Transactions are between you and another party. Due to the introduction of user will be able to get facilitate with cheap transactions across the world.
The aim to remove the in between parties. Take a case where you could send friends or family money anywhere in the world. And yes without having to pay for the transaction or currency fees that traditional banking or financial institutions have used. This major advantage thereby the makes retails and customers excited about the emergence of decentralized marketplaces.
Due to this can cut out middlemen mainly those ecommerce giants. There is a best example regarding Blockchain: “In April of 2016 OpenBazaar launched their 0 percent fee marketplace that offers the use of Bitcoin to buy and sell products. And with trading volume in Japan on the rise, decentralized marketplaces in Asia are primed to reduce friction with international e-commerce.”
Among many this one is of the most talked advantage involving blockchain technology “it can prevent future payment scams.” Apart from that by using “smart contracts” Starters would protect both buyers and sellers. Therefore, this procedure would avoid those instances where you purchase an item and the seller doesn’t follow through.
Another way that scams are disillusioned is very effective at the time of transaction. Since all transactions are recorded as per blockchain technology, once a coin, token or electronic currency is spent, it can’t be used again. Thus a coin can’t be used for double-spending or counterfeited. To understand better, since every transaction is recorded, every cent is accounted for and would prevent an Enron type situation.
To encourage the process of blockchain the customers are rewarded. As it can improve loyalty programs with the ability to trade points. Since the transactions would be placed in the public ledger it would also open up the possibility of using points at different vendors.