Blockchain technology is throttling the world of FinTech! Many huge IT industries and banking moguls are currently craving to adopt this technology that there is a prediction that the concept of Blockchain will be introduced in the CBSE class 3 syllabus! Jokes apart, it is vital for anyone to understand the idea of Blockchain and why it is better than your hard cash or any other form of financial transfer because you never know when your roadside vegetable vendor demands from you Bitcoins!
Before I start off, let me make it very clear that Bitcoin and Blockchain are not the same. The Blockchain is the carrier of Bitcoin which is a cryptocurrency from one party to other. In lay man's term, Blockchain is a block of information which is connected thus forming a chain of blocks. The benefits of Blockchain are many, and that is the main reason it is getting the same attention Priyanka Chopra is getting with regards to her engagement.
Also Read : Advantages of BlockChain Technology
The concept of Blockchain supports the notion of a Modi led digital India. It aims to make the entire system a paperless cash chain. Blockchain being entirely digital helps to put red-tapism to an end. The key benefit of Blockchain is that the data in a block cannot easily be tampered. Each Block has a unique code or hash which helps to rat out on suspicious activity. In addition to that, Blockchain is distributed among the people who deal with it hence avoiding centralized domination which hints at monopolistic manipulations. If any information in a block is modified, to nullify the effect a new block has to be added. Since the blockchain connects many people and servers, this new block has to be first seen and verified by all the parties in the chain. This helps to avoid erroneous and ambiguous activities.
Deutsche Bank is currently examining on utilising block chains in currency settlement and trade processing. The Barclay's Bank runs specified labs for Bitcoin users, entrepreneurs, and coders. Citigroup has already begun testing waters with their experimental currency called "citicoin". It can be said with confidence that Blockchain has a significant hold on the financial sector, but all the other industries are also aiming to adopt this technology for their benefits. For example, the transparent nature of the blockchain is beneficial in the supply chain and quality control as it helps to root down to the place where the errors occur, thus, increasing the quality and productivity which as a domino effect helps to decrease the costs. This is very helpful in medical manufacturing and shipping industry as any incorrect activity here can cost a life. The avoidance of intermediaries also proves to be highly beneficial. Speaking of costs and profits, accounting can also be simplified at a foundation level.
Maintaining records has never been easier! Accounting in majority consists of how to allocate financial resources or to measure the worth of properties both of which can be done quickly and in less time through the use of Blockchain. It can help to sure clear records of past activities as well as show underutilised resources so that they can be put to good use. There is also talk that blockchains can be used in the electoral voting process to avoid fraudulent activities in matters about democracy. The same logic is also suggested to be used in shareholder voting. Probably the case of Proctor and Gamble vs Nelson Peltz goes to stand for this. Blockchain also helps in global transactions and unifying the world financially. The effect of Blockchain spreading like a virus in all the industries is what shows its impending importance.
The Blockchain is a technology that is gaining momentum by the minute, and it would only be wise to learn and adapt to it to survive in the oncoming digital era.
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