Any individual who is coming into the crypto space must have probably heard about the word “Blockchain technology”. Apparently, most people who know about blockchain technology are fully aware that the technology played an important role in most cryptocurrencies and Bitcoin inclusive.
But then, knowing blockchain as one of the element tools behind the creation of cryptocurrencies is not enough. Well, this blockchain technology has so many imparts in several sectors such as the finance sector, health sector, entertainment, etc. in this content, we will be making emphasis on the understanding of blockchain technology, the blockchain possibilities in the future, its applications to the sectors mentioned above and how it is changing the world, and the working principles.
What Is Blockchain Technology?
In blockchain technology, information is stored in a chain of blocks therefore the name “blockchain” was derived.
Blockchain technology is the technology that uses a system of decentralized digital public ledgers which store information. Like it was stated in the previous paragraph, this technology is used for different activities outside the cryptocurrency space.
Blockchain Possibilities In The Future
The most joyous thing about this technology is its rapid adoption and realization. The journey of this technology is just getting started. We will be considering some of the future potentials of blockchain technology in this credible part of the article.
Transparency: the most important part of blockchain technology is decentralization and transparency. The way most organizations operate or function will eventually change as more people adopt the use of this technology. One of the core features of a prosperous business is transparency, with blockchain technology information will be difficult to keep secret which will enhance good relationships between customers and business owners.
Increases Standard Of Living: if financial admittance is allowed for those individuals who are undercapitalized, blockchain technology helps to reduce exposure to poverty and corruption. The decentralized structure of cryptocurrency made possible by the adoption of blockchain, small businesses in most developing countries experienced some potential growth.
Music: with the introduction of legal streaming services like Spotify, comparing the day’s music CD plates are bought, musicians are now making a significant amount of money. With the help of blockchain technology, it’s proven that loyalties are been owed to artists due to transparency.
Blockchain Identification: with the help of blockchain technology, fraud can be relatively reduced by recording personal databases on a publicly distributed ledger. Concurrently, the manner in which medical records are been handled in the hospital can be transformed by blockchain technology. Other aspects include; jobs, taxation, voter records, etc.
It was reported that there was voting fraud in the recently conducted Nigeria presidential election. In the future, blockchain technology will abort this or disprove this assertation.
Understanding Nodes In Blockchain Technology
Nodes are computers that link one computer to another for the purpose of sharing information through a blockchain-distributed ledger. The blockchain is stored on each node, and each node validates each transaction that occurs on it. Since every node on the blockchain would need to have its information and records changed, information will be difficult to be manipulated.
These nodes played a crucial role in the mining process of Bitcoin because of the absence of a center intermediary, it is the responsibility of the node to validate a transaction’s legitimacy on the network. Blocks may only be added to the blockchain and the miner paid once this transaction has taken place.
Applications Of Blockchain Technology To Different Sectors And How It Is Changing The World
Real Estate Sector: with the use of smart contracts, the stress of purchasing houses can be relatively reduced. Sometimes the stress of passing through real estate agents before purchasing a house can be discouraging but with the intersection of blockchain technology, the buyer can transact with the seller directly without the need of a center intermediary. This can be done effortlessly when the requirements to purchase or sell the property is been met.
Smart Contracts: through blockchain, smart contracts function in the same manner that other contracts do. It helps to eliminate middlemen where there is a need for it and carry out the activities without the need of a central intermediary. The transaction within the contract only occurs when predetermined conditions that are defined in the blockchain computer are met.
Insurance: for objective criteria to be satisfied precisely, the insurance claim procedure can be sped up and its cost can be reduced through smart contracts. The procedures can be more subjective and result in a drawn-out and expensive claim process if lawyers are left to the discretion of the attorneys.
Cryptocurrency: the essential building element of cryptocurrency is blockchain which is a decentralized asset and is free from the control of central intermediaries such as the bank, or any political body. Bitcoin creation marked the creation of other crypto assets and today we have a wide variety of different coins ranging from altcoins, DEFI coins, stablecoins, and gaming coins.
Finance: in the financial system, blockchain technology helps individuals to receive or send money in an easy and fastest manner as it eliminated the third party between transactions. It has helped to maintain transparency as it connects the sender to the receiver directly, with low fees and fast payment.
The Working Principles Of Blockchain Technology
On the blockchain, information is stored on a document called Blocks. Since no single entity owns these blocks, there are decentralized. The technology behind blockchain comprises different components.
The revolution of blockchain technology just began. It is transforming the way we think about money as a digital asset and is disrupting the traditional ways we conduct our lives. It will drastically change the way we think and behave in many other facets of our life in years to come.
Blockchain technology has applications in a different area of the sectors such as the entertainment sector, finance, real estate, insurance, etc.
In the future, blockchain technology will bring more transparency to the health industry via blockchain identities and also in the electoral processes in other to reduce electoral fraud as it will help to bring transparency to the processes.