You may have noticed a lot of hype around blockchain and its associated uses such as Bitcoin and NFTs. But it is a technology that can and is being used within a wide variety of sectors and industries, including financial exchanges, real estate and insurance.
Blockchain works as a system for recording information so that it cannot be altered by hackers and other cybercriminals. In fact, it is almost impossible to change the information recorded on a blockchain even by completely legal means. This makes it an extremely reliable data storage technology that cannot be cheated, hence its growing popularity.
How Blockchain Works
You can describe a blockchain as a digital ledger of transactions which is immediately duplicated and distributed across the network of computer systems connected to the blockchain.
A single blockchain features a chain of blocks which contain a certain number of transactions, with every new transaction recorded and added to every participant’s ledger. This is known as Distributed Ledger Technology (DLT) and is a decentralized database managed by multiple participants.
The blockchain DLT is practically impossible to hack because the transactions are recorded with a cryptographic signature called a ‘hash’, which is not capable of being changed without it being noticed. A hacker cannot just change one block in the chain, as it would immediately be noticed because of all the other unchanged blocks in the network. The only way to successfully hack a blockchain is to change every single block in the chain, including all the blockchains in the network.
Blockchain Technology and Digital Money
The concept of digital money has been around for a long time, but only when the technology arrived was it possible to actually implement. Before blockchain, any kind of digital currency could be manipulated by whoever created it.
Now the ownership of digital currency has been removed, with nobody in charge who can change the transaction entries.
Bitcoin is one of the most successful examples of digital currency, and there is nobody in charge of it because it is managed by the people who use it. Bitcoins cannot be faked or hacked, so they remain a trustworthy currency with real value.
Other Blockchain Applications
While cryptocurrency is the main form of financial exchange, it can also be used for traditional investments using real money too. It is also being used to increase the speed and reduce the cost of money transfers.
Blockchain technology can also reduce the amount of paperwork needed to transfer ownership of a property from one person to another. The technology can record real estate transactions while verifying and transferring ownership.
Other applications include insurance transparency, secure personal and medical information, logistics and supply chain tracking, as well as artist royalties and even voting in elections.
If you like to find out more about how your business could adopt this technology, please speak to our team on +1 800 974 7219 ext. 202. Alternatively, complete the online form here and a member of our team will contact you.