If you have heard of cryptocurrency then we are sure that you probably have heard the word blockchain.
But, what exactly is blockchain?
Blockchain is a system of recording information on a cloud ledger in a way that makes it difficult or impossible to change, hack, or cheat the system.
The mechanics of blockchain are extremely complex, hence why many followers of cryptocurrency do not bother learning about it. The basic idea of blockchain is very simple: to decentralize (the process of shifting control from one main group to several smaller ones) the storage of data so that such data cannot be owned, controlled or manipulated by a central actor.
Bitcoin, and cryptocurrency in general is extremely volatile which is all the more reason why people invested in should know why it exists and how it works. Those who do their research on the value of blockchain in the end will be the most successful as the world continues to adapt to cryptocurrency.
Blockchain shows a lot of promise for a diversity of useful technologies.
Blockchains depend on the utilization of public/private key pairs to identify contributors in transactions or contracts. Therefore, it can be used in other real-world (familiar) cases.
What else can blockchain be used for other than cryptocurrency?
Real Estate, Land, And Auto Title Transfers
One of the key objectives of blockchain is to remove paper out of the processing method, as paper trails are frequently a primary cause of uncertainty of record keeping. When buying or selling land, a house, or a car, the individual transfers or receives a title. As a replacement for of handling this on paper, blockchain can store these titles on its ledger, permitting for a crystal clear view of this transfer and rightful ownership.
Currently Merck is testing such a blockchain system for prescription drug returns. Blockchain could be a means of clearly tracking prescription medicines. Because prescription returns do occur, counterfeit medications are intercepted (and sometimes not) blockchain propositions prescription drug companies the ability to track their products based on serial and/or batch numbers to ensure that consumers are getting the real deal when they pick up their medications from the pharmacy.
Payment Processing And Money Transfers
Arguably, the most understood use for blockchain is as a means to expedite the transfer of funds from one party to another with digital currency. Since the US dollar isn’t disappearing just yet, there still needs to be ways to make its transactions more secure. With banks soon eliminated from the equation, and authentication of transactions ongoing 24 hours a day, seven days a week, nearly all transactions that are processed over a blockchain ledger can be settled within a matter of seconds.
In the future blockchain could compete with current dollar trading platforms to buy or sell stocks. For the reason that blockchain systems confirm and settle transactions immediately, it could eliminate the wait time traders and investors confront when selling stock(s) and requesting access to their funds for the objective of reinvestment or withdrawal.
Wills And inheritances
As a replacement for establishing a paper will, people could have the preference of creating and storing their digital will on a blockchain network. When used with smart contracts (self-executing contracts with the terms of the contract between individuals directly written into lines of code), which could distribute inheritances, both money and property, based on when certain criteria are met (such as trust fund agreements). Thus this would leave no issues as to who should receive what assets when an person pass away.
Article By Kadesh Carter – Earthy Realist CEO