Since blockchain technology and cryptocurrencies have made their way in the financial world, more than half of the world’s large multinational companies have considered adopting them. The primary goal of these companies is to research the emerging technology and to integrate the same into the products for improved results.
Before remounting the whole virtual ecosystem on blockchain technology, it must be noted that its widespread implementation will disrupt the management of property titles, health care records, supply chains, and also so your online identity.
The essence of Blockchain
Blockchain technology is a great way to manage online data. It is already in competition with the current data management systems.
The orientation of information in updateable rows and tables of columns, particularly done by relational databases, is the technical foundation of several services that are used today. Although, given their originality, they jeopardize the task of updating entries and storing the entries.
Through decades of market research, companies have expanded the functionality of relational databases although it does not surpass improvements that blockchain Technology has brought click here.
Blockchain technology is a novel and alternative hue to improve upon the architecture of relational databases in a particular way that is by removing the necessity for a trusted authority.
Public blockchains like Ethereum and Bitcoin can be stored, curated, and secured by individuals or a group of anonymous individuals by working together. This security is levied upon a set of data that can be stored and secured without having to trust another authority.
Since blockchains are replicas of peer-to-peer-based networks, the information and data contained in them are extremely difficult to extinguish or corrupt.
This decentralized feature of blockchain is enough to attract investors. Blockchain technology is particularly useful in services that tend to attract censorship.
What’s wrong with the current system?
Over the last few decades, the world has turned more global and now we not only exchange Aaj currency with C immediate people around us but we also carry exchanges with people on a different continent or across the globe.
With the current financial system, you could either cash the credit, seal it in an envelope, and mail it; or you can transfer the money on a virtual payment platform, authorized by a third party. The issue with the first method is that you might lose your cash among the huge pile of mails; while with the latter, it is the obvious double-spending.
Moreover, the current system is a centralized entity keeping track of your transactions and balances. This also means that you are more vulnerable to being hacked since it would take only one document to know about your financial capacity. The current financial system accepts only traditionally fiat currencies which are prone to be lost or damaged, given their physical nature.
The high transaction fees are yet another addition to the list of things that don’t work in the current system. Not only the thirsty some for international transactions The limited office hours for a centralized system also makes it tedious to keep up with.
The most appropriate alternative to the current financial system is to adopt Blockchain Technology. Why?
- Cryptocurrencies can be split into smaller units that are suitable for small and large purchases.
- Cryptocurrencies are easily transactable and can be sent anywhere around the world.
- Cryptocurrency eliminates the issue of double-spending since each currency can be spent only once and cannot be duplicated.
- Transactions on blockchain technology do not require hefty transaction fees rather it is quite quick and cheap.
- Most importantly the blockchain system does not trust another authority or a third party, thus, everything remains transferred between the users.
To sum up, blockchain Technology works wonders if you have learned its nitty-gritty thoroughly. Blockchain technology is needed to surpass the current, centralized, and dominant system.