The rapid advancement of Blockchain technology shows no signs of slowing down. In the last few decades, many things that seemed impossible have turned out to be false, such as high transaction fees, double spending, pure fraud, recovery of lost data, etc. But all this can now be avoided with the help of Blockchain technology.
The global blockchain technology market will accumulate $20 billion in revenue by 2024. On March 2022, the number of registered blockchain wallets is more than 81 million. Blockchain can reduce infrastructure costs for banks by 30%. Using blockchain, financial companies can save up to $12 billion a year.
What are the benefits of blockchain technology?
Here is a list of the key benefits you can expect when implementing Blockchain technology in your business:
- It is an immutable public digital ledger, meaning that once a transaction is recorded, it cannot be modified.
- Thanks to the encryption feature, Blockchain is always secure.
- Transactions are carried out instantly and transparently as the ledger is automatically updated.
- As it is a decentralized system, no brokerage fee is required.
- The authenticity of the transaction is verified and confirmed by the participants.
Blockchain security
One of the negatives of digital transformation has been the increase in personal data theft. Government databases are targeted by cyber hackers. Database hackers exposed the names, social security numbers, dates of birth, addresses, and driver’s license numbers of millions of Americans, such as the Equifax database breach in 2017. Booz Allen Hamilton wrote that blockchain data structures strengthen network security by reducing the risk of a single point of failure, which makes it harder to crack the database.
Increasing government accountability
In specific applications, blockchain could reduce redundancies in government, streamline processes, reduce audit burdens, increase security, and ensure data integrity. One process ripe for streamlining is GSA’s FastLane process, which manages incoming bids from suppliers. Booz Allen Hamilton wrote that it currently takes 40 days to process incoming submissions. However, the GSA hopes the blockchain solution will help process them within 10 days.
How Will Blockchain Disrupt Industries?
Some industries like Unilever, Walmart, Visa, etc. are using blockchain technology and have gained benefits in terms of transparency, security, and traceability. Due to the advantages that blockchain offers, it will revolutionize and redefine many sectors.
Here are the top 5 industries that will be disrupted by blockchain technology shortly:
- Banking
- Cyber security
- Supply chain management
- Health care
- Government
Fundamentals of Blockchain
1) Public distributed ledgers
Blockchain is a public distributed ledger that is also decentralized and is used to record transactions across many computers.
A distributed ledger is a database that is shared between users of the blockchain network.
Transactions are accessed and verified by users affiliated with the Bitcoin network, making it less vulnerable to cyber attacks.
2) Encryption
Blockchain eliminates unauthorized access using a cryptographic algorithm (SHA256) to keep blocks secure.
Each user in the blockchain has every key.
3) Proof of work
Proof of work (PoW) is a method for verifying transactions on a blockchain network by solving a complex mathematical puzzle called mining.
Note: Users who try to solve the puzzle are called miners.
4) Mining
In the blockchain, when miners use their resources (time, money, electricity, etc.) to verify a new transaction and record it in the public ledger, they receive a reward.
Conclusion
Blockchain technology will only grow in business, finance, law, medicine, and real estate. Whether you are an experienced blockchain developer or looking to break into this exciting industry, enrolling in our Blockchain program will help individuals of all experience levels learn blockchain development techniques and strategies. For more information, please reach out to us at Coding Brains.
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