Blockchain—if you’ve spent a certain amount of time per day on social media for the last few years, then this is probably a term that you’ve been acquainted with. Blockchain has grown to be one of the biggest buzzwords in the fields of technology, business, and finance.
You’ve probably heard about blockchain technology over an earnings call, news report, or financial success story every day or two. Blockchain is mostly associated with cryptocurrencies like Bitcoin, limiting its image to being strictly financial. However, did you know that there’s more to blockchain than digital money?
The main secret of blockchain that most people are not aware of is that it is extremely versatile and can be used effectively to enhance various services. Different startups and large-scale corporations alike all around the world continue to tap deeper into the potential of blockchain technology, instilling transparency and security in various fields.
What is blockchain technology?
Blockchain is best defined as a distributed and digital ledger that attains a greater degree of security, convenience, and accessibility. Blockchain technology derives its name from the fact that it works in the way that a part of a block gets added to a chain. In this case, the block is a sheet and the chain is a general ledger. When blocks or pieces of data are added to the chain of pre-existing data, an informational update is created, and knowledge of the change is made available for everyone to see.
The transparency of records in blockchain technology makes it much easier to stay accountable, transparent, and ethical. Every example of blockchain is distributed across a widely-established network of computers that record every change or addition, creating a record that’s is accurate and permanent.
A change or addition to the digitized and updated ledger that is maintained with blockchain technology is called a “smart contract.” Smart contracts, in essence, are minute automated programs that run on top of a blockchain to record every transaction in greater detail and carry them out.
What’s the big deal?
Blockchain technology and smart contracts both work hand-in-hand to attain and deliver the very benefits of decentralized ledger technologies that can transform any type of industry. Beyond its significant impact on financial and cryptocurrency trading markets, blockchain technology holds the ability to open complex systems for greater transparency.
As transparency continues to grow even more significant in the eyes of the modern consumer, businesses are now subject to providing accessible information on their actions. For instance, blockchain technology can make various data from company decisions available for consumers and stakeholders to track transactions.
What is the future of blockchain technology?
At this point, the rate at which blockchain technology is evolving makes for an entire “anything goes” mindset, as no one can exactly tell what’s going to happen next. If there’s one thing that’s for sure, it’s that the way businesses and governments work is going to be revolutionized for transparency with the help of blockchain technology.
In spite of its relatively new nature, blockchain technology holds great potential in regard to making significant changes in the world as we know it. Cash transactions and investments have been seeing rapid changes with the help of this technology, leaving much to be excited about in the years to come!
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