We are sure most of you have heard a little bit of the famous digital currency known as Bitcoin; specially nowadays when it seems that every source in the digital media has something to say about it: growth rate, stability analysis, risk management, etc. Be as it may, it is undeniable that is becoming the method of choice for most business transactions.
The Blockchain technology is the soul within this digital currency, virtually known as cryptocurrency, and the reasons are not hard to identify. However, the direct value exchange offered by the Blockchain goes beyond a single economical application. In fact, the relevance within our current lifestyle is overwhelming. Smart contracts, healthcare system, private communication, personal identification and a thousand other proceedings that we face day by day throughout life.
Why is this method better than the traditional one?
Answering this question can be quite extensive, the Blockchain future applications are yet to be completely determined, we do, however, have a large number of possible usages, and with them, very specific benefits. Hence, a general view of the advantages will respond to the main idea and clarify doubts and curiosities.
Scratching the surface
The Blockchain technology is a way to perform secure and decentralized transactions. Every time a transaction needs to be done, a request is submitted to a P2P computer network where a number of users, known as nodes (or validators) will validate the requested transaction using complex algorithms; a positive authentication results into either cryptocurrency, smart contracts or any other piece of valuable information. Now, don’t be confused by the simplicity of this explanation. Reality is way more complex in every stage of the process, which is in fact what makes it so attractive.
Back to the benefits
Security: After the users known as nodes success in validating the transaction requested by independent parties, the resultant information is transformed into a “block” and is added to an existing “chain” of data, containing the resulting piece of information of every other transaction performed on the network. The secureness is inherent to the method in every aspect, it is virtually flawless since any modification will alter every analysis run but the network, collapsing the system. Therefore, security matters, and it’s highly valued by either persons and corporations.
Efficiency: Optimizing the usage of the resources to guarantee the best outcome is pretty much a solid definition of the Blockchain value added. Reducing costs by replacing intermediates with direct negotiation and increasing the speed of each transaction are the pillars of success that the Blockchain is providing.
Traceability: Transaction of goods requires a decent supply chain management. After all logistics wouldn’t be a major unit in every corporation if the commercial transactions are untraceable. The Blockchain very own principal allows the parties involved to track every step of the deal in real time, location, ownership and condition of the merchandise.
Technology for sure is always changing, evolving, consolidating. It is a fact that the Blockchain is a technology that hasn’t been completely spread yet and there are still a lot of data to recollect regarding it. However, the benefits are undeniable, and provide a whole new way to exchange valued information in a way that has never been more comfortable and secure.
