Blockchain Technology

What is blockchain?

Blockchain is an unchangeable, distributed ledger which is used to record transactions and monitor assets across a corporate network. It is a type of information storage that stops people from modifying, manipulating, or deceiving it. 

A blockchain is open to the public since it exists on the network rather than within a single entity. To preserve virtual security, a blockchain is encrypted and employs public and private keys. The blockchain enables individuals to transfer money to other individuals without using a financial institution. 

The most well-known application of blockchain is in cryptocurrency. Some examples of digital tokens are Bitcoin, Ethereum, and Solana. Crypto, like a digital version of cash, may be used to purchase everything from cars to houses. Unlike cash, cryptocurrency employs blockchain to serve as a public ledger as well as an advanced cryptographic security mechanism, ensuring that all online transactions are always recorded and protected. 

The idea of blockchain came into reality in 2008 with Satoshi Nakamoto perhaps motivated by the financial systems crash in the same year. He developed a peer-to-peer electronic cash system known as Bitcoin. This is what became the foundation of distributed ledger systems (Blockchain).

Advantages of Using Blockchain Technology 

1. Decentralized- Traditionally, transactions require the permission of regulatory bodies like a bank or government; but, with Blockchain, transactions are done through the common agreement of users, which result in better, safer, and speedier transactions.
2. Permanent ledger system- This means that all the transactions which are recorded in the system are stored permanently and can be traced anytime. This means that in case of a dispute the relevant authorities can publicly see and confirm these transactions in the system.
3. Can be automated- It is programmable and can automatically create systematic actions, events, and payments when the trigger requirements are satisfied.
4. Highly traceable- The distributed ledger technology generates an audit trail that documents the origin of an asset at every stage of its journey.
5. Increased speed and efficiency- Traditional paper-intensive procedures are time-consuming, prone errors, and frequently need third-party intervention. Transactions may be conducted faster and more efficiently by optimizing these procedures with blockchain. Documentation and transaction data may be recorded on the blockchain, removing the need to use paper.
6. Low cost for users- Due to the decentralized nature, blockchain enables person-to-person validation of transactions, eliminating the need to use intermediaries hence reducing costs.
7. Highly Secure- It employs a digital signature function to perform fraud-free transactions, making it difficult for other users to distort or edit an individual's data in the absence of a specific digital signature.

Disadvantages of Blockchain technology 

1. High cost of implementation- While this technology has minimal user costs, it also has substantial implementation costs for businesses, which inhibits its widespread acceptance and deployment.
2. Risk of permanent loss- Despite the high security and privacy through private keys, if users lose their keys, they permanently lose their coins. This is why users should always store them in a safe place where they can easily access.
3. Increases unemployment- Due to the nature of blockchain technology eliminating the need for human intervention, its use in fields such as education and the health sector will render many people jobless because their services will no longer be needed.
4. Used for illicit activities- Due to the nature of transactions in the blockchain keeping users anonymous since they real names addresses are not given, it has been used by individuals to commit illicit acts like scamming and drug abuse.

Industries that use blockchain technology 

Finance

Blockchain services are used by traditional financial institutions, like banks and stock market exchanges to manage electronic payments, portfolios, and market trading. They solved various problems by implementing blockchain, including transaction processing and laborious verification of thousands of banking transactions.

Health

Traditionally the healthcare systems were using database management systems that were centralized hence they were only accessible in the facility where the database was in. These traditional database system are also prone to hacking. With blockchain use in the health sectors, the health professionals can share patients personal records with other professionals enabling them get the treatment they need universally. The records are also stored permanently hence they can be accessed any time the patient visits the hospital.

Media

Copyright data is managed via blockchain platforms by media and entertainment companies. Copyright authentication is essential for equitable artist pay. The sale or transfer of copyright content necessitates many transactions. These transactions are stored in the blockchain and can be accessed any time when needed.

Retail Industry

Blockchain is used by retailers to trace the flow of products between suppliers and purchasers. Blockchain may be used to improve transparency, traceability, and trust in a variety of business operations, allowing merchants, payment gateways, and customers to create trust.