The blockchain is slowly sinking into our minds as a revolutionary technology. Some say it paves the way for more convenient exchange, while there are those saying it makes the financial world more secure. One of its offspring; Cryptocurrency.
Though it’s not yet widely accepted, cryptocurrency proves to have great potential. Not only does it make transactions easier, but it can also make the environment safer. However, some people are quick to dismiss it as a fad.
Perhaps they’re standing on firm ground, or just haven’t fully understood its concept. Whichever the case is, it’d be wise to know what The Blockchain is. Who knows, maybe just like the internet in the early 90s, blockchain could be a huge part of our lives soon?
What exactly is the Blockchain?
Blockchain is a technology that serves as the foundation of all cryptocurrencies. It functions like a massive digital ledger where all virtual transactions are recorded. Unlike banks, it does this without the need for a central governing body. This is made possible due to it operating in a peer-to-peer (P2P) network system where users verify individual transactions.
Little-to-Zero Transaction Costs
One of the things that make blockchain technology revolutionary is that it can operate without any third party. This saves a lot of time and effort for transactions to be processed, making it cost-efficient. The results are lower transaction costs and less hassle on the part of the receiver and sender.
Security and Transparency
One of the reasons why people remain skeptical on blockchain is due to its open source nature. Anyone can view the public ledger and the source code of the technology whenever they want. On the brighter side, this makes the tampering of logged data almost impossible to do.
Millions of people can see the changes in real-time, making it easy to spot any unverified alterations. Its universal accessibility makes it a transparent and more secure way of dealing with transactions.
Settlements Done in a Blink of an Eye
Blockchain tech makes transactions happen almost instantaneously. This is a massive stride from the way banks work where it would take a single transaction days or even weeks to complete.
The Blockchain is up 24/7, unlike banks that only operate on working business days. Not to mention that other financial institutions are located in different time zones, further delaying international transfers.
Users Have Full Control
As mentioned earlier, Blockchain is a democratic-inspired technology. Anyone can alter its nature, making it the majority’s interest. We’re currently living in a world that’s so constrained by different policies and changes; it feels like we’re being left behind by our government and financial institutions.
Blockchain technology deals with that problem as it gives ordinary people control over it. One good example of this is the creation of Bitcoin Cash. Bitcoin Cash was created because a percentage of the Bitcoin Blockchain consensus voted on a separate cryptocurrency.
No Need for Governance
In this overly-saturated world, it makes sense to find a way to safeguard yourself from potential wide-scale economic downturns. That’s just what Blockchain did. Knowing that there are millions of users out there, it would be better if these users aren’t directly connected to a central server or system.
The Blockchain doesn’t have a governing body. Instead, it’s managed by its users, much like how torrents work. Take for example PayPal. This online payment service had a series of pitfalls over its 20 years of operation.
Some of it was server crashes, some were technical glitches, while the remaining were a host of problems brought about by the management itself. The result? Users unable to withdraw their funds, or having questionable deductions on their eWallet.
With Blockchain, the people’s transactions and funds don’t rely on how efficiently a few people can manage. Instead, users have complete control over their funds at any point in time.
We’ll never know when Blockchain will be fully adopted. But with the current pace of how the technology is put to practical use, we can say for sure that it will happen. It’s not a matter of if, but just a matter of when.
Put it this way: everything starts small. There will always be naysayers that are afraid of change. That’s just how things are. We just need to be patient and find ways to stabilize Blockchain’s very foundations further. It might be through more regulations or stricter policies. Whichever it is, a new digital revolution is upon us, and it all has to do with Blockchain.