We all started hearing of Blockchain about ten years ago and most of what we heard was associated with Bitcoin. Fast Forward 10 years later and the technology is everywhere with many Fintech startups focusing on the Blockchain technology. So, what exactly is Blockchain? And how did it revolutionize online transactions?
The use of Blockchain technology is the newest and safest trend that guarantees total accountability within any sector. Blockchain was initially used only to process Bitcoin transactions. As of date, the digital currency is widely used, and its value rises day by day. The successful use of bitcoin transactions in everyday commercial activities is a classic example of how effective the use of the blockchain technology has become.
How does it all work?. Here are 2 examples:
Blockchain can transform bank credit information systems. These systems are ineffective due to three reasons. First, scarcity and poor quality data makes the judgment of personal credit situations difficult. Secondly, there are problems with inter-institutional data sharing. The third problem is the unclear user data ownership. Blockchain technology can ensure data encryption, which helps consumers control big data and establish ownership. It can also ensure the automatic recording of big data while also sharing and storing encrypted forms of consumer credit status within banking institutions. This enables credit data sharing.
One industry that is heavily focusing on Blockchain right now is Fintech. Activities in the fintech industry are being boosted by blockchain as payment and settlement services are made easier by the technology (and harder to manipulate).
Blockchain can eliminate friction and stock tampering in the stock trading sector. It can significantly reduce the time and costs of stock purchases. The current stock trading model takes days and exhibits several middle parties.
Blockchain technology can streamline and add transparency to this operational process. It will also eradicate a lot of the gray tactics used by some stock traders such as naked short selling. Two companies that have experimented with blockchain in stock trading include Overstock and Nasdaq stock exchange.
The use of and success of the blockchain technology is promising in all sectors of every industry that relies on online data for daily operations. Government offices can use this technology to update information, an example of where this can be applied is the lands registries in the Lands Ministry. The blockchain technology is also particularly helpful in smart online contracts where execution is complete when certain conditions are met. The future of blockchain with no doubt holds more adoption of the technology by more industries and business sectors.