Why Is Blockchain Important For The Growth Of Our Economy?

Let’s know more about bitcoin’s underlying technology and how can it benefit our ecosystem.

Blockchain | What Is Distributed Ledger Technology?

The Blockchain that appeared as an innovative tech solution for real-world problems a few years ago is expected to give IT a turn just like open-source software did decades ago. The same way these open-source software took years to become a base of modern software development, Blockchain will take over the IT in the coming years and become the cheapest as well as the most effective way of sharing data in companies.

Blockchain is a distributed ledger technology-based on P2P (peer-to-peer) networking which enables data to be stored on thousands of servers globally. One of the key reason why Blockchain is important is that it allows everyone to track real-time entries from anywhere around the world which eventually decreases the chances one any one user taking access over a transaction or play with the network.

Initially, Blockchain was developed as a distributed ledger of Bitcoin transactions. So now the question is that what is distributed ledger? The decentralized/distributed ledger means that the devices where the database is stored are not connected to a standard processor. The Blockchain consists of blocks of transactions where each block is then linked to the previous one, building a never-ending blockchain.

Why Is Blockchain Important?

Let’s look at the significant benefits of Blockchain that signify its need in our technology.

History of Activities

Unlike common databases where you only get the picture of data whcih is up to date, Blockchain also allows you to track the exact history of activities. For example, it enables you to get ahold of all the data that existed before too even if it was updated then. In simple words, you can say it is a database with history.

Incredibly Secure

The best thing about blockchain technology is that it is incredibly secure. Why? Because it is decentralized, and unlike a centralized database, it has no single point of attack. So, it’s a no-no for hackers. It is one of the key features of Blockchain that will help secure data and record transaction without the fear of getting it hacked or misused.

No central administrator

The data is replicated in thousands of places worldwide which eliminate the need for centralized control and the expenses and infrastructure that comes with it.

How Could Blockchain Technology Benefit Major Sectors?

The influence of blockchain technology and cryptocurrency worldwide have started to be realized already. Considering the fact that there are still over 2 billion people that don’t have access to our traditional financial services and bank accounts, Blockchain could really be a turn in the world’s economy. This way, everyone around the globe could transact and use digital payment methods without the need for bank accounts.

This transformation in financial technology can be considered similar to that brought by cell phones in developing countries.

Blockchain is a way out from the government-controlled system enabling people to have control over their lives. The technology is already embraced by many worldwide. The only thing worth consideration presently is the series of security breaches, thefts and hacks occurred in the previous years.

Apart from providing underprivileged with the entrance to banking services, blockchain technology can have a high impact on various sectors of the market. The following will help you get the answer to why is Blockchain important for the major industries in our economy.

Food Supply:

The innovative technology has provided supply chains with the ability to track the supplies from the farm to the counter. IBM made the latest news by announcing its partnership with large food suppliers like Walmart and Nestle. Blockchain furthermore would help these suppliers find the causes of food contamination. This will build a true relationship between suppliers and consumers.

Governments: 

Governments have started pilot projects to fit the new technology into everyday operations and acquire the most benefit from it. For example, recently, the UK government used the technology to track the disbursement of student loans as well as the funds to needy. According to the government, blockchain technology would help reduce not only corruption but the costs of paper.

Health Organizations:

Distributed ledger would replace paper tracks used to keep the medical details of patients with digitalized data that is more secure and cannot be hacked.

Apart from these sectors, the music industry is also considering adopting blockchain technology. The technology would help reduce piracy in the industry making sure the right people will get paid. Also, it would allow listeners to access and download music directly from the Blockchain and pay using cryptocurrency.

These were just a few examples, but in actual blockchain technology can be used in all major sectors. Many industries have even taken the initiatives to imply and make use of the technology to get the most out of it.

Conclusion:

Both Blockchain and cryptocurrency are taking the world by storm and the time is not far when these new technologies together would transform our whole economy. Blockchain could be the solution of many issues in including that in major sectors, such as healthcare, food supply and for the government purposes too. We hope the above article has given you the idea of why is Blockchain important and how it could benefit our economy. Many technologists believe that Blockchain will offer the world a platfrom build on trust with no fear of frauds.

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