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Technology

Why there a sudden interest in Blockchain and its usefulness?

Answers 1

Blockchain as the name suggests are blocks which are being chained together, but they are not real blocks- pun intended but blocks of codes or algorithm which work together on solving mathematical equation which carries information regarding the conditions or the rules that are being defined within them. These blocks contain ledgers, contracts and information which when set true will be executed. There are benefits of using Blockchain as it provides: - a) Enhanced Security: Whenever dealing with a new technology there is a bit resistance towards it and many questions come up in mind, out of which the foremost question would be whether the technology that I am going to use is secure or not? For this reason, blockchain is in fact in several ways more secure. As rules and conditions must be agreed upon before, they are carried out. Once that transaction is approved it is encrypted using the algorithm and is being linked with previous transaction. Now, each and every ledger across the world has this new information in a secure manner, so it would be difficult for a single person to carry out a hack to change the entries as this technology is decentralized in nature. b) Transparency: Now, as we know that this new technology is decentralized what does it mean, it means that all the transaction are being shared with everyone. So, if any one rule or condition needs to be changed then unless and until majority of the people are in favour of the change it is not going to happen. This is helpful since the contracts/transaction details are not in one’s hand who can change it according to his will. c) Tracking: Auditing of things becomes easy as one knows where the particular transaction came from, as it helps to prevent fraud and verify the authenticity of the transaction. d) Reduced time and increased efficiency and speed: Now, when each and everyone in the chain has the same contract which has the predefined rules before the transaction came up. It is easier to process faster since the contracts doesn’t need to be reconciled first then do the work. It helps in reducing human error and builds trust within the parties involved. e) Reduced Costs: At the end of the day it depends with how much money one can walk away with. Same is with any business, if there are reduced cost then the company makes profit. Blockchain helps in reducing cost as contracts are shared over the network everyone involved has the same copy of the contract. No third-party is involved or middleman or an agent, since it the contracts shared between the parties are immutable.


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