In the aftermath of the 2008 financial crisis, blockchain technology was born. The enigmatic “Satoshi Nakamoto” invented transformational technologies.
A decentralised, distributed digital ledger is what blockchain is. The blockchain comprises blocks (digital information) kept on a public database (known as the chain). These blocks contain transactional data such as the date, time, and participants in the transaction and the information that distinguishes one block from another.
Bitcoin was the first cryptocurrency to use blockchain technology. Bitcoin was instantly popular, and the price of Bitcoin soared to nearly $20,000 during the run-up that ended in December 2017. Then came 2018, which turned out to be a year of reckoning. In a few months, the price of Bitcoin and Ethereum plummeted. As a result, many initiatives stalled or were abandoned.
Beyond financial transactions, blockchain may be used to improve the security and efficiency of various corporate processes, including applications that require data transparency and documents with a permanent time and date stamp. For example, blockchain technology can be utilised in insurance for customer onboarding, smart contracts, and fraud detection. In addition, blockchain is being used in supply chain applications and 3D printing in the manufacturing industry.
Blockchain technology can address the problem of data security and the prevention of hostile cyber-attacks. According to reports, the worldwide blockchain technology market will reach $20 billion by 2024.
Unlike previous methodologies, many Blockchain development organisations are motivated by this technology to re-architect and reformulate security concerns. In addition, blockchain provides a true sense of delivering data trust aspects.
However, there are some myths prevalent about blockchains like:
-The first misconception is that blockchain is just concerned with Bitcoin. It isn’t the case. Blockchain isn’t even a type of digital currency. Yes, the entire ecosystem must function. But, as previously stated, blockchain is a distributed ledger.
Blockchain is the secure record that states “x” Bitcoins have been transferred to the miner in exchange for the miner’s processing energy spent on a specific transaction. Payments like these are made during peer-to-peer transactions, and the currencies are kept in a digital wallet. The maximum amount of coins that can be mined is determined by an algorithm.
Blockchain is beyond bitcoin.
Another common misconception is that the critical uses and benefits are only available to financial institutions. Other industries, like real estate, healthcare, and even manufacturing, are already looking into blockchain applications. The integration of AI with blockchain is a vast synergy that results in a flood of new application cases. Due to its vast data mining and processing capabilities, AI can boost the capabilities of blockchain-based systems. For example, it can help retail, governance, and worldwide verification systems.
Greater Transparency and Accountability with Blockchain:
The most significant advantage is its transparency. In addition, the public can examine the transaction ledger, which adds another element of accountability.
Security, encryption, and validation are all enhanced by blockchain technology.
Each time a new transaction is created on the blockchain, it is encrypted and connected to prior transactions.
The unchangeable and incorruptible nature of blockchain makes it extremely safe to use, as it prevents the information from being manipulated and reduces the chance of hacking.
Smart contracts can also increase trust, transparency, and security. When circumstances are met, this automates the process by activating the following action.
Provide safe data storage:
The best method to secure the data of a shared community is to use blockchain. Nobody can view or interact with any sensitive data saved using the blockchain’s capabilities.
Handling data that is disseminated over a network of people is beneficial. Furthermore, the technology might be used in government services to keep public documents decentralised and secure.
The most significant advantage is its transparency. The public can examine the transactionledger, which adds another element of accountability. Data immutability is one of the most fundamental characteristics of distributed ledger technology. It provides a whole new degree of security in which no action or transaction can be tampered with or counterfeited. This system verifies each transaction by requesting confirmation from numerous network nodes.