Blockchain- The Transforming Technology and its Applications
With the steep rise in digital transactions, it is more important than ever to keep transactions secure and ensure the integrity of the transaction records. The Blockchain is a process for an Internet user to transfer digital data or money to another user over the Internet, without the need of a central authorizing party. The transfer through the system is sure to be safe, secure, and legitimate.
Blockchain Technology is a way of registering and distributing information over the Internet that abolishes the need of a central party to justify every transaction as a valid or invalid one. The Blockchain is the perfect blend of three underlying technologies- the Internet, private key cryptography, and the protocols of incentivization.
Authentication and Authorization are the two determining factors in proving a digital transaction to be trustworthy. Authentication simply means ‘are you really who you say you are’, while Authorization means ‘should you be able to do this’.
How does Blockchain work
Bitcoin is the widest and biggest application of Blockchain until this day. It is like the dollar that has no value as such, but just that people have agreed to use it for trade. It works in the following way-
- Blockchain maintains a registry, or a ledger, to keep track of the bitcoins owned by different people.
- This registry is not kept a central server but is distributed across a network of privately owned computers that store the data and also execute computations on it when required.
- Whenever a transaction takes place, the ledgers are updated.
- On the blockchain, every transaction can be viewed by anyone in the network, unlike the centrally located systems like a bank, where a person can only view his/her transaction.
- Each blockchain user owns a wallet which can be used to perform transactions.
- This wallet is protected with the special cryptography methods- with private keys and public keys, to ensure safety and Integrity.
The most crucial features of Blockchain
- It is an ideal financial ledger solution owing to the fact that it does not require a central authority. With technology being able to make settlements, there is no need of employing settlement agents and clearinghouses, thereby reducing the cost of joint ventures and other such partnerships.
- The effective use of Digital Signatures and verifications allow for no perceivable scenario wherein a fraud of a humongous nature could possibly take place. Blockchain’s underlying functionalities that consist of cryptography ensure, at least, theoretically, that no threat or malevolence exists in the system.
- Blockchain can be really helpful in tracking the movement of assets through a supply chain- vendors, factories, through the transportation lines finally to the location.
Blockchain Applications that are leading to Transformation
Financial Services are seeing a lot of disruption with the advent of Blockchain.
Smart Contracts- These are the self-automated computer programs or applications that can carry out the terms and conditions of any contract and maintain the terms too. These contracts are unbreakable.
Smart Bonds- These are the applications that pay the bearers of the bond automatically when the preprogrammed terms and conditions are met and fulfilled.
Asset Management- This area of trade, with traditional methods, is a risky one where the broker, settlement party, and the custodian, each maintain their own records. This leads to a lot of loopholes in the system which can be efficiently reduced with the use of Blockchain.
Smart property- Properties such as a house, car, shares, patents, can have smart technology embedded into them so as to make the process of contract easy. The method will also increase trust and efficiency.
Blockchain Internet of Things- Internet of Things leads to a connection of people-people, people-things or things-things. Blockchain ledger can provide the much-needed security to the Internet of Things technology. When billions of devices will be linked together, it will be imperative to make sure the massively distributed system stays secure. Use of Blockchain in these scenarios can lead to defining ownership and managing, storing, and transferring securely any information from and to these devices.
Blockchain in Healthcare- A patient’s medical history and records could be kept secure but within access to specific individuals, like his doctor, or family and friends. Receipts of the medical treatment can be securely stored and later sent to the insurance agency for the settlement and as a proof.
Blockchain in Entertainment- The hassle for the ownership rights, royalty distribution, and copyrights can well be tacked in the Entertainment industry with the use of Blockchain.
Blockchain Identity- The selling of a person’s details by some companies can be effectively curbed with the use of Blockchain as it will keep all the information private and secure. This method can be used in Passports, birth, wedding, and death certificates, and for Personal Identification cards.
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Why look for a Blockchain Development Company
If all the cryptocurrency hype has left you marvelling and wondering, and if one of the above-mentioned applications seems important for your product or service, look out for the best blockchain technology companies for your help.
We at CDN Solutions Group are way ahead of the curve than other IT outsourcing companies in offering the best Blockchain application development services at competitive market costs.
We have on our team some finest Blockchain specialists to work on your Cryptocurrency application, or on your Decentralised application development needs. We can build smart contracts for you so as to smoothen out the process of jointly handling a venture or any other partner relationships. Contact us here to know discuss your requirement.