Blockchain technology is getting more popular these days. Since the increase in public curiosity about the world of cryptocurrency, the search for blockchain technology has also increased.
This happens because these crypto assets use a technology called a blockchain. So, the blockchain is a database that cannot be replaced or changed. In essence, blockchain is a technology used to store digital data connected with cryptography.
For those of you who are curious about what blockchain is, this article is for you. Because after this we will discuss the future of blockchain technology: potential applications and implications
What is Blockchain?
Blockchain is a database mechanism technology that enables transparent sharing of information in business networks.
Even so, many other sectors can take advantage of this technological development from Blockchain.
The meaning of the naming of this technology reflects how the blockchain works. Where this technology utilizes computer resources to create connected blocks (chains).
Blocks that are connected are later used to execute a transaction. This technology is quite interesting because it is not centralized. Blockchain can run on its own using a computer algorithm without any specific system that regulates it.
Use of Blockchain Technology
The financial sector is the main sector that takes advantage of this technology. In the financial sector, this technology is likened to a digital cash book that can be accessed by anyone, anytime, anywhere easily without having to get approval from parties or financial institutions in general, such as banks.
This technology makes all transactions in it more transparent and subagencies minimize data misappropriation such as bribery and corruption.
In 2018, McKinsey created a table of blockchain opportunities in various other fields. Starting from the medical sector, agriculture, property, and telecommunications.
Blockchain Working System
The simple explanation is that the blockchain starts when a block stores new data. The system consists of two types of records, namely transactions and blocks. What is unique about this technology is that each block will contain a cryptographic hash to form a network.
The function of the cryptographic hash is to retrieve data from the original block and convert it into a compact string. The string is used as a detection alarm if potential sabotage is found.
Its decentralized nature means that this technology does not have a single authority with full control, but is divided into each computer that has installed special software or software.
Advantages of Blockchain Technology
Every new technological development certainly has its element of excellence. Like in the field of blockchain technology.
Among others are:
- Transparent Transaction System
This technology is able to store transaction data safely and transparently. When making transactions, there is public access that can be seen by everyone without having to login access. This is of course very different from the banking system or pattern in general.
- Have Good Data Protection
There is a verification system by miners before canted on multiple computers. The database structure is append-only or only add and does not have edit command access. So, hackers will not be able to change the data.
- Efficiency and Faster
The conventional currency transaction process will take quite a lot of time and there is a factor of human error involved. However, in blockchain technology, transactions become more efficient, fast, and of course safe.
- Guaranteed Security
Currently blockchain is equipped with the advantages of cryptographic encryption. So, transaction security is not a problem. Transaction history cannot be changed because encryption uses cryptography. So as to minimize fraud.
- Better Audit System
One of the important functions of blockchain technology is its suitability. The audit trail of an asset can be known because everyone can see and track transaction data. There is no more potential for embezzling corruption funds because transaction data is public, immutable, and append-only.
The Blockchain Way To Change The World
Blockchain called it a new technology capable of changing the world. This technology has its charm in the eyes of its users, now we will discuss the future of blockchain technology: potential applications and implications, among them:
- Can Increase P2P Interaction
With this technology, peer-to-peer (P2P) interactions can be continuously improved without the need for an intermediary. Like digital currency or cryptocurrency exchanges that no longer require the presence of a professional broker.
- Provides Full Control over its Assets
Assets stored on the blockchain via cryptocurrency do not have rules over asset control like in banking. If the bank goes bankrupt, the assets stored may not return.
In contrast to crypto assets that are stored using blockchain technology. Everyone has full control over their assets without being tied to the policies of the central bank or local government. Users can manage themselves through a crypto wallet which is free to access at any time.
- Encouraging Scientific Progress
Blockchain technology is able to change the scientific progress that is being faced by giving access to everyone through real-time data and eliminating large companies, institutions or foundations from controlling important information. Thus, data on an open blockchain can be accessed and managed for research purposes by all groups.
- Offers Stability
Inflation and instability are always experienced by fiat currencies that are commonly used in various countries. Inflation is caused because the government through the central bank can print as much money as they want.
However, crypto assets stored with blockchain technology can avoid this inflation because of their resistance to inflation. Especially Bitcoin which cannot be produced forever and there are only 21 million worldwide.
- Able to Increase Crowdfunding
Crowdfunding is a way of raising money that businesses do for their products. Investors can make small investments to reduce risk during the company’s fundraising process.
Crypto assets can be used as a tool for fast, efficient and systematic crowdfunding because they use a strong blockchain network and are difficult to fake.
Closing
That’s a discussion about the future of blockchain technology: potential applications and implications, hopefully it can cure your curiosity.