Blockchain technology is all the rage at the moment, with the Bitcoin bubble of 2017 and the cryptocurrency market’s recent recovery. As a result, we are seeing a number of businesses and individuals beginning to look at the potential that blockchain technology can offer. Here, we’re taking a closer look at why we should be paying more attention to blockchain technology and where the future lies for this particular type of technology.
What Is Blockchain Technology?
While Bitcoin and other cryptocurrencies are continuing to make headlines, blockchain technology is the lesser-known entity of this exciting technological movement. Despite making up a range of cryptocurrencies, such as BTC, which are being traded around the world, blockchain technology has a lot more potential to offer than simply a digital coin. The blockchain is the brainchild of Satoshi Nakamoto and has recently become the backbone of the internet, without many people realizing it.
The blockchain is a digital ledger which is resistant to corruption and allows economic transactions to take place. These transactions are not necessarily financial either and can also be integrated into a contract and other forms of transactions, also. Blockchain has no single point of failure, further helping to improve the overall potential of the technology.
The biggest benefit of blockchain technology is the increased level of security that it provides, both for cryptocurrencies and all of its other potential applications. Blockchain technology acts as a decentralized ledger and as a result, the entire network is far more protected and immutable than what a centralized ledger can be. No single entity has control of blockchain technology, allowing the system to remain entirely transparent at all times. In addition to this, the way blockchain technology works are through a chain of digital blocks.
Within each block, there is a record of transactions which cannot be altered once they are confirmed. In addition to this, a very complex system of cryptography helps to secure each individual block, with network participants having to own a series of keys in order to appropriately access the keys. As a result, the security levels of blockchain technology remain almost unmatched when compared to existing security systems put in place by banks and other financial institutions. We’ve already seen the ransomware attack which crippled the NHS’ security, which has led to many institutions in all industries searching for a new way to secure their data.
Applications For Blockchain Technology
Blockchain has a huge amount of potential for a huge number of industries across the world. Aside from making up the complexities of cryptocurrencies, blockchain technology has a number of other applications, some of which are already in progress in an embryonic manner, and others are currently planned. Some start-ups believe that financial market systems will be one of the first to implement blockchain technology in order to increase the levels of security amongst the systems.
This is already being led by a start-up known as R3 CEV as they begin to implement the Corda operating system. Other applications that blockchain technology is likely to be implemented within include payment platforms, banks, medical record storage, digital public registries, immutable voting records, and even digital rights management. Blockchain technology has an endless amount of uses for the future, and we’re likely to start seeing this being implemented almost immediately.