LAHORE: Blockchain is the culmination of all that the internet has to offer. It is the continuation of internet technology that has seeped into every corner of the globe, connecting people from all continents. It has become a tool for businesses, politicians, celebrities, and governments.
What is blockchain?
What was originally developed as the accounting method for the virtual currency ‘Bitcoin’, a blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. It primarily allows market participants to keep track of digital currency transactions without central recordkeeping. A ‘block’ in blockchain refers to a current part, which goes into, or adds in the blockchain to create a permanent database. Each time a block gets completed, a new one is automatically generated.
Blockchain has complete information about different user addresses and their balances right from the starting block to the one at the end.
One of the most important aspects of blockchain is that it cannot be deleted. It is a permanent record of transactions added to the database using cryptography. Also, the data can be distributed, but not copied.
Builds trust in the digital age
At a time when tech giants such as Facebook, Twitter, and Google are under fire for using people’s data unlawfully to generate insights which have been used to facilitate government elections and provide an edge to certain businesses, blockchain being a permanent non-deletable record, offers super-encrypted security through cashless transactions.
Eliminates the need for third parties
With blockchain being at the forefront of internet technology, it usage eliminates the need for third-party sources since it allows both parties a record and history of all verified transactions. It also reduces the cost required to use third-party entities to check and verify these transactions.
Eradicated the need for cash
Every year, governments, as well as businesses, are realizing the importance of reducing the need for cash and the risks associated with it. Known to be a robust alternative to traditional currencies, cryptocurrencies allow for transactions to take place in real-time through secure encryptions.
Businesses of today are increasingly investing in securing their online databases. There have been many examples in the recent past which show how easy it is for hackers to infiltrate and access important customer data on servers such as credit card information, phone numbers, addresses, and their record of transactions. The blockchain is in this regard fool-proof. The level of encryptions behind a transaction based on cryptocurrency does not allow cybercriminals to access customer data.
Since blockchain transcends geographical boundaries or the need for people to be in physical proximity for transactions to take place, it allows entrepreneurs more leverage to work at their own convenience. The surge in startups using blockchain technology has been phenomenal in the recent past. Market growth in a report said, “Crypto startups use initial coin offerings (ICOs) to accelerate their business without the need to undergo capital-raising that banks and investors usually require. Basically, how it works is that startup owners are going to provide a percentage of their currency to early investors and what they get in return in legal tender or other cryptos”.