The technology will have the greatest impact in the coming decades, not by social media or AI or big data but the underlying technology of digital currencies like bitcoin.
“With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.”
– Satoshi Nakamoto
What is Blockchain?
Blockchain, as the name specifies, is a chain of blocks that contain information.
What was the actual intention of introducing Blockchain?
Way back in 1991, when it was introduced, it was originally intended to time-stamp digital documents from refraining them to be backdated. It was also used to avoid any kind of tampering the documents. But it went unused till 2009.
After 2009, how it came into the picture and gained attention?
In 2009, it was adapted by Satoshi Nakamoto to create the Digital Cryptocurrency- Bitcoin. The issues that were marked in the current banking system:
- Banks charge huge transaction fees.
- Fake currencies create the problem of double spending
- Longtime involvement in banking.
- Bank can collapse anytime such as the 2008 financial crisis.
- Digital wallets such as Paytm, Citrus, etc. solve these issues but still are dependent on banks.
Few Statistics that proves Blockchain as one of the Hot Topics of IT:
According to stats from expandedramblings till March 2018,
- The potential for reducing bank infrastructure costs: 30%
- Reported Potential for annual savings for banks utilizing blockchain technology: $8-12 Billion.
- Percentage of major North American and European banks that are exploring Blockchain: 90%
- Estimated Amount that financial and technology firms invested in Blockchain in 2016: $1.4 Billion
- The amount that hackers stole from DAO’s fund in 2016: $50 million.
- The total amount that blockchain startups raised in H1 2016: $290 Million
- Blockchain Market is expected to be worth $20 Billion in 2024.
- The average investment is Blockchain Projects in 2017: $1 Million
- Banks experimenting with permissions blockchain: 69%
- 75% of all Bitcoin ATMs are in the United States and some overseas Bitcoin ATMs only dispense US Dollars.
Facts and Fictions about Blockchain:
Before strolling towards the facts and fictions of the Blockchain, let us first take a short tour of how blockchain works.
So since you got an idea about how a blockchain works, let us march towards its facts.
- Blockchain keep record of transactions as ledgers. In the case of Bitcoins, Blockchain records financial transactions between parties.
- The Blockchain is decentralized meaning no one is in charge of it.
- Microsoft and Accenture have teamed up to create a prototype Id system for the United Nations aiming to provide legal identification to more than 1 billion people in the world. This will be beneficial to refugees who have left their homes without any documentation.
- Only 13% of the senior IT companies talk about their plans of investing in blockchain as per IDG Connect.
- According to Accenture, banks can save more than $8 billion on transactions per year if they use blockchain.
- American Express is using a technology created by Ripple that facilitates money transfer with good pace and instantaneous.
- Walmart is using blockchain technology with help of IBM, to determine where mangoes, berries come from so that they can easily get the origin of bad food on recall. This they could achieve in 2 seconds as compared to week’s result under their current system.
- The Internet of Things(IoT) can thrive using blockchain technologies.
- The blockchain market is elevating with good pace globally. In 2015 it was worth $317 million but is expected to grow to $20 billion by 2024 according to Transparency Market Research.
- According to Capgemini, educational institutions are more bending towards blockchain technology for avoiding certificate fraudulent as well as for record-keeping needs of students.
Properties of Blockchain:
- A distributed ledger that is open to anyone.
- Once the data is recorded inside a blockchain, it becomes very difficult to change it.
- The Blockchain is cryptographically protected.
- All entries are public and widely accessible.
- The information can be made restricted like for banking sectors.
- The untraceable feature of created cryptocurrencies can be achieved by the developers with scrambled transactions that are difficult to trace.
Apps that can be based on Blockchain Technology:
- Blogging platforms based on Blockchain.
- Social Media Platforms based on Blockchain.
- Cloud Storage based on Blockchain.
- Entertainment Platforms on Blockchain
- Charity Platform on Blockchain
- Employment Portals based on Blockchain
- Medical Records storage Platforms on Blockchain.
- Buying and selling platforms on Blockchain.
- Data Management Platforms on Blockchain.
- Loan Providers, Organization Management platforms based on Blockchain and many more.
Blockchain grants the complete authority to users to have control over their data. It eliminates the need for dependency on a third party for their transactions and data. Blockchain Development Companies not only provides transparency but also provides efficiency and verifiability.
I have tried to cover all the important points in blockchain technology. If I have missed out any points, facts or figures do comment in the box below.
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