Blockchain Technology Has Nothing To Do With Blocks Or Chains But Has Amazing Benefits
Banks and other financial institutions have funded the shakeup of many different industries over the last few decades & blockchain technology is next. The main reason that institutions know best is that they know what a technology revolution takes and can do it with many different options.
In order to stay ahead of change, banks need to undertake R&D, they need to build out centers to test new theories in, and they need to build relationships. For blockchain in particular, these institutions need partnerships with blockchain creators in order to really understand the potential of this novel technology.
The results of the chase for new ways to deploy blockchain technology are starting to show with the recent shakeup in the industry. The benefits of blockchain have become to be more clear and include:
1. Digital Identity Is Established
When we talked about how blockchain technology works, the part of the equation that involves “identity” is fulfilled by using anonymous, cryptographic ‘keys’. This blends public and private keys to generate a stronger digital identity basis for possession of digital currency & transaction to go along with it.
Public keys allow people to stand out from the crowd whereas a private key is how to let the cryptocurrency community know that you approve or disapprove of digital transactions. This is one of the important pieces of the blockchain technology movement.
2. A Ledger of Blockchain Transactions
Blockchains have a system of checks and balances. They can hold good records for registry and transactions or what are known as static and dynamic data. When it comes to registry, the data can be held on bockchains in a number of ways – Unencrypted, encrypted, & hashed – which can either be read by every blockchain, read by participants with a decryption key, or presented alongside a function created to show data was not messed with.
3. Prove The Blockchain Can Be Unchanged
A mainstay of blockchain technology is that it produces a running history of engagement. Because of this, the blockchain history is unchangeable by design. It would be a huge task to change an entry because it would demand a change to all other data that would come after it. For this, blockchain is a system of record.
4. Acts As A Platform – Not Just For Cryptocurrency
Though they were the first platform developed that use blockchain technology, cryptocurrency is not the only application for blockchain. People now have taken the idea of this platform and developed it into something that can be applied to any kind of smart contract.
In a smart contract, the idea is to accomplish several things. Take, for instance, a “smart legal contract”. Also known as Ricardian contract, much of the application is built around an idea that a contract can be a mix of a number of variables including verbal agreements, written agreements, and things like timestamps, auditing, and even business logic. Conversely, there is also a “vending machine smart contract,” where machines interact after receiving a cryptocurrency and send a signal to trigger a blockchain event.
As discussed in other articles, ethereum smart contracts control blockchain assets that are conducted via engagements on ethereum blockchain. Ethereum is the platform for a smart contract code.