Blockchain technology, the underlying technology behind cryptocurrencies, has gained mainstream consciousness as prices of Bitcoin and Ethereum surged over the years. However, only a few fully understand the potential of the digital asset blockchain and its impact on different industries. While most have focused on Bitcoin, blockchain-based applications have quietly changed business processes in various sectors, including healthcare, financial, and supply chain management.
Understanding Blockchain Technology
To understand the blockchain as an emerging technology, it’s essential to obtain a basic understanding first.
Blockchain technology is a distributed ledger or decentralised system that contains a network of decentralised nodes. Each node contains a copy of all transactions made within the system.
The idea of blockchain technology was first known when Haber and Stornetta published a paper called “How to Time-Stamp a Digital Document.” The paper proposed a liner hash-chain that links issued time-stamps, which makes it impossible for users to back or forward=-date documents. And in November 2008, a whitepaper called Bitcoin: A Peer to Peer Electronic Cash System was published by Satoshi Nakamoto. Thus, the blockchain was born.
The appeal of blockchain technology to users lies in three things: Decentralisation, immutability, and transaction speed.
- Decentralised network.
Decentralisation is one of the key features that make blockchain technology appealing to many users. Also referred to as a “trustless environment,” a decentralised network such as Blockchain does not rely on a centralised 3rd party or database. The system is protected by a network of miners using what is called “Proof of Work.”
Blockchain-based applications are immutable, which means transactions on the digital marketing blockchain cannot be altered or deleted once it has been entered and verified. Changing any part of the ledger would require 51% consensus or approval from the nodes, which would require enormous computing power. This is what makes blockchain technology less vulnerable to malicious attacks.
- Transaction speed.
Most financial transactions take days or even weeks due to intermediary processes and/or institutions. Blockchain has none and thus, allows it to transfer value anywhere in the world quicker and more efficiently.
Blockchain Technology: Going Beyond Cryptocurrency
Cryptocurrency may be the most prominent application of blockchain technology now, but there is no denying its scope and implications. It has the potential to disrupt, reshape, and revolutionise industries and create new opportunities for emerging economies.
Financial institutions are one of the first to adopt blockchain technology through the adoption of cryptocurrency and borderless transactions. Blockchain technology news and reports predict the following industries to adopt Blockchain:
With privacy and security at its core, the healthcare industry gains the most by working with blockchain technology providers. Blockchain allows health organisations to collect, store, and share patient data, diagnostics, and research across a secure network without fear.
- Supply chain and management.
One of the challenges of the supply chain industry is transparency and accurate tracking across the chain. Blockchain technology eliminates the guesswork and provides users reliable, transparent, and authenticated transactions in every stage of the supply chain. It also improves reliability, lessens costs, and avoids fraud.
- Data asset management.
The proliferation of free platforms makes managing and tracking digital assets a challenge. Copyright infringement is just one example of how digital assets can be manipulated and used without proper attribution. Through the blockchain, establishing ownership and protecting the copyright of any digital asset is made possible.
Blockchain technology is not without pitfalls. As with any emerging technology, there is always room for growth and improvement. One thing is for sure, the blockchain is here to stay and offers massive investment potential. Interested in creating wealth out of the digital asset blockchain? Contact Key Coin Assets now and start to invest in yourself!