Blockchain Application Throughout the Digital World

Introduction

Blockchain technology, which comprises digital currencies such as Bitcoin, has been impactful in the digital world since its introduction. The focus has shifted to this technology as it offers robust and futuristic solutions to traditional transaction and record-keeping methods. The information stored here in its system is hard to tamper with, and no unauthorized hands can access the information through any malicious means like hacking. Blockchain is incredibly secure and safe, and enables fast transactions. We narrow down six most striking features that makes this technology highly preferred across online communities.

Security

Blockchain technology is not like other databases that are monitored by designated individuals. The sending and retrieval of information from such databases is risky because it can be intercepted, tampered with, or used maliciously to cause pain to unsuspecting customers or users. The Blockchain ledger requires a special digital signature, called cryptographic keys, to make a transaction, which reflects across all computers in the network. Users without these keys can view the transaction details but cannot alter them in any way. Through this, all transactions are fraud-free.

It is Decentralized

Blockchain technology transactions do not need approval or regulation by a third party such as a bank. Transactions are made upon mutual agreement of the players, resulting in a swift, fluid, and highly secure transactions.

Automation/Smart Contracts

Blockchain makes it possible for the automation of actions, activities, and payments when the set requirements are met. These requirements are predetermined conditions, that need to be confirmed and approved before the next action is triggered. Also, smart contracts can apply to workflows, where the next process is initiated when the set conditions are met.

Blockchain Technology Applications

Even though Blockchain technology was introduced alongside Bitcoin, it has several applications and is very much relevant in other sectors and industries other than cryptocurrency. The financial services sector, the supply chain industry, and public and private sectors are among those that can tap into and immensely benefit from Blockchain by enabling safer, faster, and automatic operations and transactions. Online businesses and consumers have a lot to thank Blockchain for, ranging from cross-border payments made easier, secure record-keeping to identity management and protection.

Cross-border payments

As globalization is increasing—businesses, brands, and organizations are going international, buying and selling are not restricted by the parties' geographical locations. Because a person in Africa can make a purchase from a merchant based in the U.S., cross-border payments are central to such activities. In 2018, Smart Payment Tracker (https://www.pymnts.com/b2b/) indicated that cross-border B2B payments surpassed the $120 billion mark in terms of generated revenue. It is important to note that the biggest concern of cross-border payments is security—how secure is the cross-border payment transaction? Blockchain offers highly secure cross-border payment options, alongside removing the need for brokers within the cross-border payments. With Blockchain, cross-border transactions are effected through mutual consent, making them much faster, convenient, and efficient. Cross-border payments enabled by Blockchain technology are transparent and trustable. Besides, Blockchain applications such as smart contacts can make cross-border payments more reliable and faster, without human intervention.

Record-keeping and identity management

Blockchain is a premier technology in record-keeping and identity management and protection. The online community is highly dependent on record-keeping and identity management. As the world is becoming meaner each day, identity management has become a matter of international concern due to the staggering cases of identity fraud worldwide. In America, for instance, identity management is a real issue because, according to LifeLock, more than 16 million Americans experienced a case of identity fraud in 2017 alone. Blockchain, being a decentralized database or ledger, eliminates the cases of identity theft. It is hard for fraudsters to have access or tamper with personal information, including social security numbers, identity card numbers, and many more because they do not have digital signatures to enable them to do so. Blockchain technology also gives an individual the power to stay in control of their digital information and decide who gets to access it. The information is encrypted, hence perfect identity management.

In terms of record-keeping, online businesses process a lot of data arising from online sales, inventory, and so much more. These records need to be kept safe, or else they get into bad hands and cause trouble like theft and false pretense. Record-keeping through Blockchain does not require brokers or third parties to be effective. This way, the whole record-keeping process is secure and extremely fast.

Conclusion

Presently, Blockchain technology is being utilized in other sectors and industries such as finance and healthcare to streamline processes. Blockchain technology is highly secure, programmable to enable automation, and it is decentralized, the main features that make it irresistible. Blockchain technology is applied widely, with some notable examples being record-keeping and identity management, and cross-border payment.