Blockchain technology is publicly-managed and stores the transactional records, which are known as a block, and all such blocks are connected in chronological order to form a chain, hence the term “Blockchain”. This stored information is commonly referred to as a digital ledger and all the chain’s old blocks information is permanent which can’t be modified or altered.
Three pillars of blockchain
Those who have some knowledge about cryptocurrency or blockchain technology must know the three pillars that led to the huge popularity of this technology. The three pillars of blockchain technology are
Decentralization,
Transparency,
Immutability.
We will discuss these in detail one by one.
Decentralization
One of the biggest advantages of using blockchain technology is its decentralized system. Earlier, we are used to centralized systems such as banks which use this technology and for a time this has served us well but this is not a perfect technology. Blockchain is far better technology as due to a decentralized system the information is available to everyone in the network which eliminates the need of any third party to access the information. This is one of the reasons behind the sudden rise of bitcoin as the person who owns the digital currency has complete authority without the interference of the banks. The decentralized system makes it more difficult to hack than the traditional system but that doesn’t mean that this is a hack-proof technology.
Transparency
This feature of the blockchain is often misunderstood as it is hard to understand how a system can provide absolute privacy and transparency at the same time. Let us understand this with an example – consider the transactional history of an individual is represented by an encrypted code called ciphertext. While Bitcoin.org says that anyone can access the balance and transactions from a particular address which makes the tracing of this information a lot more challenging.
Immutability
Immutability in the case of blockchain technology means that once something enters this system it is difficult for anyone to even the creator of the blockchain to temper or change it. It is hugely beneficial in money transactions cause once a transaction is initiated it is difficult to undo the transaction. This is the reason that cryptocurrencies like bitcoin are used in cyber crimes but these are just too small when compared to the actual positive impact these have.
Bank sector
Blockchain technology can be used in the banking system to address the various shortfalls in the system. This technology will bring the secure foundation our financial system needs to handle the fund transfers and other transactions. Blockchain technology will make availing loans, saving funds, monetary transfers, and lending money easy and transparent. Platforms like Ausfinex – crypto trading platform Australia are providing investment opportunities to invest their money from banks to trade fiat currencies and invest as well.
Energy sector
Blockchain technology can be used to provide electricity generated from wind and solar energy. Blockchain popularised the concept of peer-to-peer electricity trading without the need for any central authority.
Insurance sector
Another sector that is strongly considering the use of blockchain technology is the insurance sector. With this innovative technology, process efficiency, cost reduction and transparency to their system and increasing the revenue growth for the industry.
Real estate sector
The next that can hugely benefit from blockchain technology is the real estate sector. Blockchain will bring in the transparency and secure transfer of data and money that the sector needs. The technology will make it easy to keep the records of agreements, contracts, and appraisals in a systemized manner that will make the data access easy and accessible for everyone.
Blockchain technology has a lot to offer in various fields and is clearly the future that everyone must be looking for. Cryptocurrencies that are based on this platform are some of the advantages that we are seeing right now. Due to the promise this technology has to offer, many believed that it is best to have some money invest in the crypto that operates on the same technology. If you are looking to invest or trade crypto then Ausfinex – the best crypto trading platform Australia is the best trading platform to trade safely, securely, and capture the opportunity this blockchain has to offer.
