The advantages of the blockchain for solving modern problems
The success of the cryptocurrency market in recent years has turned people around the world. Investors have found an unbridled earning opportunity in these digital finances, developers have a field for innovation, and businessmen are the way to develop their business. All this has become possible thanks to the advantages of Blockchain, which today are used in various sectors of our life.
Briefly about what is the blockchain
For a start, it is important to understand that “blockchain” does not mean “cryptocurrency” or “Bitcoin”. Blockchain represents a decentralized database consisting of various blocks, each of which carries a portion of the transmitted information.
Therefore, despite the fact that digital currencies are based on this technology, its use is much more widespread.
The principle of operation of the blockchain can be compared with a data folder that various users have access to. In the open registry you can always see who and when went to the folder, what changes were made in it. However, these changes can be made only by those to whom it is rightfully entitled. When using the blockchain, the information in the folder is not stored in one place, but is copied over different blocks, which means that it cannot be deleted in one step or unauthorizedly edited.
Why do you need a blockchain in a global sense
Blockchain is used to simplify a variety of processes without losing quality and security. It is ideal for use in situations where there is a deal, information sharing, interaction between partners. The technology guarantees transparency and accuracy of transactions, and therefore has become especially popular when working with databases, contracts, money transfers and more.
Practical advantages of the blockchain
- No intermediaries. Perhaps the main advantage of the blockchain in the context of the operations. For example, at this time, when transferring funds from card to card there is no direct connection between the recipients. There is always a bank in the middle. There is no such dependence in the blockchain. The transfer of digital currency from wallet to wallet occurs instantly, the success of the process is confirmed by its participants, the commission in this case is significantly lower than any payment systems.
- Decentralization. Blockchain is a decentralized data distribution system. Unlike traditional servers that have a single control center, and therefore vulnerable to hacker attacks. Attempting to crack the blockchain is almost certainly not a success, as getting into all computers on the network is a huge, almost impossible effort.
- Security. Since the blockchain is a cryptographic technology, information in such a network is automatically encrypted. The processes in the blockchain are also irreversible because a feasible transfer cannot be canceled. Information hidden in blocks is not available to external users. Which side does not approach, the blockchain is like a digital fortress.
- Transparency. Open source development ensures transparency of operations. Information about transactions is open, while it cannot be changed. Thanks to the blockchain, you can view the full translation history of “no cuts” and give opportunities open relationships and payments in any field of application.
Where the blockchain is already being used successfully
Since the blockchain is a universal data repository, its use is possible in almost any area of life.
A simple example is medicine. Paper and even electronic tape with the restoration of the patient’s medical history can cost him his life. Blockchain allows you to quickly enter data into a human card, access to it, if necessary, doctors can get anywhere in the world.
In addition to medicine, blockchain is often used in jurisprudence. The Ethereum developments in the field of smart contracts have revolutionized this market. Now each user is able to create a full-fledged digital legal framework for their business, avoiding intermediaries. All transactions can be built on the basis of smart contracts, through which cheating is impossible.
As already mentioned, blockchain is effective in the interaction of the parties. Back in 2016, a deal took place between a bank, a startup and a company producing raw materials worth $ 100,000. All of them had jurisdiction of different countries, and therefore the process of transferring funds would take more than one day due to bureaucracy and other nuances. Thanks to cryptography and blockchain technology, the transaction was completed in a few hours.
Compatibility of our future and blockchain technology
The obvious advantage of the blockchain is the incredible potential and rapid development of this technology. A few years ago, this topic was something foreign, understandable only to enthusiasts of the digital market. Now blockchain technologies are changing the world around us: We received a system capable of significantly improving and facilitating tasks of various levels of complexity – from intercontinental transfer of funds to an appointment with a doctor at a neighboring clinic.