Blockchain is more or less the new concept for many people, and with time the technology is constantly growing in terms of development and its application. While the fundamentals of blockchain are simple, it depicts the idea of an open ledger that isn’t owned by anyone but is used to make financial transactions. Blockchain is a decentralized system that means it can be used by the government, financial institutions, business leaders, brokers, or any person to record any sort of information regarding the exchange of money or transactions.
Now, Blockchain has become the face and foundation of digital finance and new applications, respectively, here we have curated 5 Facts about Blockchain that will give a broader comprehension of this new-age technology.
Blockchain is used to create Digital IDs
One of the most interesting facts relating to Blockchain is its developing projects in the coming days by the world’s leading software company, Microsoft. The company is trying to generate decentralized digital identification that entirely relies on the functionality, security, and reliability of the blockchain network. The idea of a single digital ID will assign each user a unique identifier that could be used in each sector, from banking, insurance, healthcare to travel. Still, there are approximately 1.1 billion people across the globe that cannot access or own any digital identity which leads to around one-seventh world’s population vulnerable to perform and participate in the vital role such as elections, opening a bank account, finding employment, engage in real estate, travel hassle-free, and a lot more. The inability to access the identification documentation develops a lot of trouble for a person to handle digitized banking or financial systems and other sectors limiting their freedom.
However, in the beginning, the blockchain ID system seems challenging to transform the world into a new shape, but the growing demand and successful implementation work in a favorable way. If we talk about cryptocurrency alone, the market cap is growing astonishingly, exceeding $60 billion by 2024. Sooner, blockchain technology will fuel the ruling sectors and change the game of industries all around the world, especially from developing nations.
Blockchain Eliminates the role of Middleman
Blockchain exercise Distributed Ledger Technology (DLT) opens up a great option to save data in different places in the name of nodes or users. While there is still scope for all blockchain to expand and work in the same way, you will see that most of the applications are pinned to the DLT, keeping users and nodes together in the process of developing the chain. Making Blockchain more secure than paper documents, the transactions are recorded in blocks that cannot be modified, removed, and verify every movement. Moreover, the user itself can be handled that eradicates the need for middlemen or any third-party auditor, which increases the risk of tampering of data. The chances of hackers attack are possible in Blockchain where protocols and nodes can be changed, but details of activity can be easily recorded and traceable.
So, it’s a fact that blockchain is a conventional technology that has changed the dynamics of providing security, reliability, and scalability in the cyber world. Adding to that, the electronic cash transaction through bitcoin’s cryptocurrency or in the other form has been adopted by numerous banks and financial institutions throughout the world. Even in India, banks have already started implementing blockchain-based applications including, eKYC, invoice processing, trade documents, verification and authentication of documents, and issuance of commercial letters that were once done by the help of agents, or intermediaries. Gradually these elements encouraged the growth of corruption and mismanagement, which has been suppressed with the evolution of Blockchain.
The adoption of Blockchain can transform the global shipping industry.
The shipping industry works on a complex logistics network using abundant shipping lanes to move goods around the world. One of the biggest transformations the industry could experience after adopting Blockchain technology is simplifying the process while saving plenty of hours that drowns in the heap of paperwork. The technology has exciting implications that could make the shipping faster and efficient than before by improving data management and demand management. If blockchain is applied in a systematic manner, it will make it easier for companies to plan and organize the shipping methods that could strategically make the cost of goods sold lower at a price throughout the globe. Forthcoming years demand the logistics industry to grow into a broader scale that needs the understanding and adaption of transparency of blockchain in the first place. To avail the full potential of blockchain, the logistics industry’s ecosystem needs to be competitive and thrive for the dynamics of the technology.
Blockchain is all set to bring out significant changes, especially in the operations of the shipping industry around the world. All it needs is the simultaneous efforts and strong bonding between logistics companies and government regulators to join hands and make policies to overcome the blockchain contradictions.
Blockchain has taken place in Scientific Research
Blockchain is treated as a blessing in the scientific community where masses of studies and information is continuously developed, and on-going findings are limitless. However, scientists often get stuck at one point when the replication of data and studies becomes difficult to access as the original research is not available publicly. With Blockchain technology’s help, scientists could further do research and look out for the data stored for the study. It would allow numerous research parties to study and share the same information for infinite times. Moreover, a new window has been opened for scientific groups to collaborate and progress with the research and findings utilizing the relevant and high-quality data all at once. Earlier, most of the results were delayed due to conflicting views for two or more teams on the same subject. The difference in information, quality, or amount of data was the critical reason behind the hindrance of relevant research.
The process is led by one accessible public ledger of data to conduct studies that had been either done before the period or is going on by the teams of researchers across the globe. All the time, money and conflicts are saved, allowing the future results to be faster, accurate, and precise.
Future Growth Prospects of Blockchain through the Financial Industry
If any industry has seriously evolved with acquiring Blockchain technology is none other than banking and financial institutions around the world. Unlike other businesses, banks have adopted Blockchain to manage traditional operations and transform their processes in several ways. Let’s take the instance of ReiseBank AG in Germany, in 2016 they used blockchain technology to complete immediate payments between two of its cross-border clients that took only 20 seconds.
In a PWC report, this year, around 77% of financial bodies are expected to adopt blockchain technology for their in-production system. Blockchain technology has conducted a new variability for the option of savings for banks. It will merely allow the institutes to reduce excessive bureaucracy, improve security options, introduce authentication and verification options, conduct faster transactions at a lower cost, and much more. According to Gartner’s prediction, the banking industry could derive 1 billion dollars of business in 2020 through blockchain-based cryptocurrencies. Even the Australian Securities Exchange plans to execute a blockchain system to manage the Australian financial market by the end of 2020.
We can see the growing adoption of blockchain-based systems and the introduction of new cryptocurrencies that will directly influence the financial bodies’ monetary policy worldwide. It will be easier for banks to gain control over these policies by normalizing the technology in their system.
Also Read:- Blockchain & Cryptocurrency Regulation in the USA