What is the Blockchain and some of its uses

block chain

block chain

The world is moving towards a digital revolution and Blockchain technology will play a key role in it. The concept of Blockchain might not be as popular as Bitcoin but it is indeed an interesting and innovative concept.

The Blockchain is a decentralized database and is termed as an electronically distributed ledger or list of records that is accessible to various users. Speaking about accessibility Capital casino is accessible to you right now online – AND they accept cryptocurrency!

The ‘Blockchain Technology’ holds endless possibilities because it is decentralized and secure. As a secured decentralized system for transactions, Blockchain is the backbone of cryptocurrency.

Let’s dive into the details of this innovative technology.

Basics Of The Blockchain

Let’s explain some basics of blockchain to make it easier for you to understand.

Blockchain enables you to view the previous ledger entries and record new entries. Most blockchain networks have some complex rules for addition of new blocks to the chain of previous blocks. The blocks and the data in them are protected by a powerful cryptography which prevents the transactions from being destroyed. Thus, blockchain maintains a trusted transaction network without relying on any authority.

Although blockchain has a prominent role in the rise of digital currencies in recent years. But, it also has non-crypto uses in various industries. Some experts believe that the overall potential of blockchain is very big. They are of the view that blockchain will be a viable option for long term investments.

So, the future of blockchain is bright in years to come because of the decentralized nature of it.

How The BlockChain Works?

The decentralized ledger of blockchain is accessible to various users and contains a list of records.

The element used in blockchain to log, process, verify, make a transaction secure, and make it transparent and permanent is Cryptography.

Normally, there are two categories of blockchain.

  • One category is Permissionless, that everyone can join.
  • Another category is Permissioned,  which requires participants to be authenticated by higher authorities.
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This category is then divided further into community blockchain and private blockchain. Visit Here

Future of Blockchain

Blockchain has a bright future and is an emerging technology. However, there are still mixed feelings about the potential of blockchain.

The TechRepublic Research study shows that 70% professionals haven’t used blockchain. But 64% of them said blockchain will affect them and their industry in some way.

There was a Trend Insight Report from an analyst, Gartner who made the following forecast.

  • Only 10% of businesses will achieve any true transformation by using blockchain through 2022.
  • At least one blockchain based business will be worth $10 billion through 2022.
  • The business value by blockchain would increase upto $360 billion till 2026 and upto 2030, it would grow to more than $3.1 trillion.

Another promising area of projected growth for blockchain technology is Cybersecurity. Data tampering is an ongoing challenge for all businesses today and blockchain is its solution.

Blockchain technology can be used to prevent data tampering, and its destruction. It will help in making all the data secure and allow the participants to verify the file’s originality.

John Zanni is the President of Acronis Foundation who said in an interview in Forbes, “We believe that the technology of Blockchain will bring revolution in tech and IT sectors.”

Role of Blockchain Technology in Business

Blockchain technology has massive advantages for business. The areas on which it can act after being adopted are higher revenue, more efficient use of time, and lower costs.

Some examples of how blockchain is doing wonders in corporate companies are:

  • ConsenSys Quorum

It was originally developed by JP Morgan. The Quorum is a business-grade service that aids other companies to grow and manage blockchain networks of large-scale.

  • LVMH

It is a luxury goods company that is tracking goods and fighting counterfeiting. All this occurs through blockchain technology.

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It has achieved a feat of registering more than 10 million products on a platform. The creation is in conjunction with Prada and Cartier.

  • MediaChain

Mediachain is a blockchain database acquired by Spotify. It is used to manage copyrights, resolve rights holder issues, and royalty payments

Role of Blockchain in Financial Industry

An evolving industry using blockchain is the finance industry. Blockchain eases the process of cross-functional border payments. The development of this technology will be worth watching as it will further revolutionize the finance sector.

Some companies using this technology in the finance sector are:

  • IBM’s Blockchain World Wire

It’s a blockchain-enabled technology that uses a stellar protocol to settle cross border payments. The World Wire API is integrated into banks payment systems that convert digital assets into currency.

During the Covid-19, IBM stopped this system and made the code open source.  They did it to invite the development community to learn from it.

  • Paystack

Paystack creates payment systems and connects payment processors together. The goal is to make it quicker and easier to assist online payments.

The financial services company, Stripe bought Paystack for $200 million in October 2020. By that time it was powering 50 percent of online payments in Nigeria, where it was founded.

In September 2020, it became the first Nigerian payment gateway to become an Apple Pay partner. This opportunity opened the platform to 380 million users across 60 countries.

  • Securrency

It’s a trading platform for cryptocurrencies and other assets. The exchanged Securrency tokens allows crypto to be traded outside of their particular exchanges.

  • ABRA

Another global financial app that allows you to buy, invest, and store up to 100 cryptocurrencies. The company raised $55 million in funding to help develop a comprehensive product range. It will help people manage their money more conveniently.

  • Numerai

The Numerai company aims to build an open-source hedge fund. They’ll do it by sending encrypted datasets to thousands of decentralized quantitative analysts. The analysts are picked because they build predictive models. The best among them are rewarded with Numerai’s token. Those tokens are used to create a trading meta-model.

  • Bloom
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Bloom implemented blockchain to credit scoring by building a protocol. It will manage risk, credit scoring, and risk.