How can blockchain change the world?
If you’ve kept up with the news, blockchain has been all over the place lately. But what does blockchain actually do? And how can it change the world? Keep reading to find out everything you need to know about blockchain technology.
What is Blockchain ?
Blockchain is a distributed ledger or an immutable record of data transactions. It makes use of a peer-to-peer network for data sharing. Blockchain technology helps to transfer money in an efficient and secure way without intermediaries like banks and other financial institutions. Since its inception, Blockchain has been valued at billions of dollars due to its applications in diverse sectors such as healthcare, banking, insurance, finance etc. Before going further in details, let’s understand what exactly is Blockchain technology with few real-world use cases below
Understanding Blockchains:
Cryptocurrencies such as Bitcoin, Ethereum, and Solana are all digital currencies with values that fluctuate based on market demand. One of their most valuable features is that they’re largely anonymous — which makes them extremely popular with investors and retailers alike, especially since many users have grown weary of big banks and other financial institutions.
What are smart contracts ?
Smart contracts are self-executing digital agreements that, through a series of technical steps, ensure all parties involved in an activity or transaction meet their obligations. Smart contracts offer transparent, traceable and binding ways to exchange money or anything of value, as well as services. They don’t need third-party enforcement agencies and could replace legal contracts completely. This new tech is especially useful for buying and selling assets like securities or real estate.
Some practical applications of blockchains:
Blockchain technology, in its simplest form, is a shared digital ledger that records transactions across many computers. That may sound pretty simple and not all that different from other applications you’ve heard of (like spreadsheets). But blockchains have a few significant advantages over old-fashioned databases: They are decentralized; they use game theory and economics to create incentives for people to participate honestly; they enable smart contracts; and they can be used on virtually any type of asset.
The Future of Blockchain Technology:
Blockchain technology is already being used in many ways, and more and more people are investing in it. The future of blockchain technology looks very bright, and will likely be an integral part of our lives in a few years’ time. Blockchain technology is a promising new frontier that could radically transform everything from how we invest to how we go about our daily lives. This is its story.
