The blockchain is a digital and decentralized public ledger of cryptocurrency transactions. Initially, it was developed as an accounting method for virtual currency ‘Bitcoins.’ All the continually growing blocks gets recorded and added in chronological order that allows the participants to track their digital currency transactions without central record-keeping. Each connected computer network that is called node gets automatically downloaded a copy of blockchain. Block is individual and current part of blockchain that keeps all the record based on recent transactions. After being recorded, it goes in blockchain as a permanent database. There are end number of blocks in a particular blockchain, connected to each other attached in proper linear. Each block has a hash on preceding block. So, blockchain was designed in such a way that they cannot be deleted once recorded as a transaction. The data once logged cannot copy and shall remain as a meddle proof.
Blockchain itself has its full history based on financial institutions, and every block is an individual bank statement. As it is a diverse database system, acting as an electronic ledger, blockchain ease the business transaction for all parties. This technology is not only attracting the financial institutions and the stock market but various other sectors like music, insurance, diamonds and Internet of Things (IoT). The first international blockchain was brokered and completed by Commonwealth Bank of Australia and Wells Fargo & Co (WFC) on October 24, 2016, having a $35,000 deal involving Australian cotton trader Birghann Cotton Marketing which purchased cotton from its U.S division in Texas and forwarded it to Qingdao, China.
When we talk about the Merits of blockchain technology, we see various electronic ledger based accounting systems getting cheaper today. It also minimizes the processing delay that results in holding less of the capital against pending transactions. Moreover, millions and millions will get saved by reducing the amount of capital charge by dealers or brokers to settle the outstanding trades. This, undoubtedly will increase the transparency and simplify the auditing to save anti-money laundering compliance costs too.
With the removal of human involvement in procedures ultimately benefits the cross-border trades, as it takes long time to process due to time zones issues and all parties must confirm payment processing. Moreover, smart contracts or payments can be trigger out after the conditions being met.
Tech Companies and Blockchain Technology:
Tech companies are adopting the blockchain technology with the goal of creating transparency among various industries, in seek of removing the middleman and heading towards democratization and decentralization. One of the leading San Francisco based P2P lending platform BTCJam, specialized in giving Bitcoin loans, lent more than $15 million last year. Even the established firms like Microsoft Corporation has shown interest in Blockchain technology and formed a partnership with blockchain firm ConsenSys. Further, Microsoft Corporation and ConseSys declared to launch Ethereum Blockchain as a service (EBaaS), to provide single click and cloud-based environment for clients and developers. They also started developing a blockchain based identity system for people, products, apps, and services.
The blockchain is a technology which is substructure like TCP/IP that enables the internet. Like the internet, Blockchain must allow bursting forth as a free bird. It is very crucial to handle it cautiously, identifying the significant difference in the platform and applications that run on it. Financial applications get empowered through TCP/IP, but it cannot be regulated as an instrument. Moreover, the essential use for Blockchain today is Bitcoin currency exchange that will be monitored and will dramatically change over time. Blockchain technology does not fit neatly in this current regulatory considerations, and this is what happened with various inventions, we’ve missed out due to the over-regulated Internet.
Blockchain technology offers an incredible opportunity for decentralization and avails the ability to generate businesses operations flexibly and securely. Companies will succeed in making use of blockchain technology for creating products and services. The demand and popularity of blockchain technology are taking a giant leap and is getting mature and advance day by day.