How Blockchain Can Re-Invent The Financial World
Most of the people are familiar with the term blockchain, but only a few know about the benefits that this technology offers. This article will provide you an insight into blockchain technology and about the relevant hardware/der Software and how this technology affects the global supply chain as well.
As we using banking facilities for most of our financial need we see how we give the bank access to all our previous transactions as well, which is quite unnecessary and this data can be easily manipulated by the bank.
This is where blockchain technology comes into effect, this technology is like a public ledger that is shared on a public or private network with open access to all its users. This basically provides every user on the network a copy of the data that is there. This is how blockchain makes all these financial data tamper-proof. On any blockchain network, you can only add more data in the form of block. Only through unanimous decisions this data can be altered or deleted.
There are four main features of blockchain technology which are:
- Peer-to-peer transfer of data increases the transparency of the data on the network. This data is shared with all the users making it really difficult to make any of the data to be altered.
- As all this data is cryptographically secured you get security for your sensitive data as well.
- Only the addition of data is possible on this technology in chronological order which makes it really easy to manage and maintain.
- Only with mutual consensus, any data on the blockchain can be removed or altered.
There are several ways through which this technology can help us in re-inventing the global supply chain:
- As there are tons of people working at the back-end for management of our financial records and all these services are paid. As we implement blockchain technology we can reduce this cost significantly. With this tech, we can eliminate all the mediators and get more security for our data as all the data is decentralized and hacking this system is really difficult.
- This technology will also be helpful in preventing identity thefts as the control of the government gets decentralized as well. There will be transparency with the taxes and all other financial transactions.
- This will enable voters to vote from their homes without any influence. The accuracy and anonymity of the votes will also be preserved. This is an excellent way to end corruption during elections.
- Other than the financial sector this technology can be used for supply chains for tracking and supplying goods more quickly, the energy sector enabling users to share extra energy, for storing government records, preventing piracy in the music industry, and in the healthcare sector for storing medical history of patients.
You can particularly use the term data as a social good. As blockchain would help in generating a lot of data and this data could be compiled at a single source by government agencies for effective service delivery mechanism, identification of targeted beneficiaries and thus realizing inclusive development.
As well as in the new age of data-driven world this data could further be monetized by the government for its functioning purpose thus ensuring economic viability with credible data in hand.