The term “blockchain technology” is nothing short of a buzzword. Its influence, or at least the perceived influence, has been so significant that it is easy to compare it to the Internet’s introduction in the late 1990s.
This century began with an information revolution that cleared the path for e-commerce and quickly transitioned to social networking. Replace “information revolution” with “cryptocurrency revolution,” and you’ve got yourself a perfect definition of Blockchain. We’re talking about banking, blogging, automobiles, information technology, legal services, and even manufacturing – Blockchain appears to be emerging as an all-encompassing economic answer.
It’s worth noting that we’re discussing the financial industry. In the age of cybercrime, a sector that is fraught with suspicion. So, if a technology is bringing about a big and progressive change in the way it works, it is unquestionably valuable and promising.
It has a value for large and small organizations, the government, and, most importantly, the average citizen in this scenario.
Blockchain Technology Explained
Someone has always been in control of the database that stores your transaction details at some time. Your valuables are safe only as long as this database is in safe hands. Experts have spent most of the twenty-first century finding out a secure way to conduct transactions in order to solve this uncertainty. As a consequence, blockchain outperforms all other technologies.
Because blockchain technology is based on a distributed ledger, this is the case. Simply said, transaction information is recorded in blocks that are spread over the network, hence the term blockchain. Any modification to one of the blocks has an impact on the entire chain.
What does this mean?
To put it another way, if a hacker wants to get through, he’ll have to modify every block in the network. And it’s not easy because the blockchain is constantly extending.
As an example, consider Bitcoin and Ethereum. These are digital currencies based on blockchain technology. Because they are so widely used, their Blockchain is constantly updated. The more blocks there are, the more difficult it is to interfere with the network.
Why has Blockchain Technology Been Advertised for so long?
There’s no better approach to consider the significance of Blockchain than to bring up the issue of trust. Its technique is so strong that, owing to homomorphic encryption, even someone with no prior information may use it safely. Furthermore, the repeated encryption and validation process creates a system that is suited for replacing traditional accounting and auditing processes.
Above all, there is no way for a third party to intervene. As a result, blockchain technology appears to be a win-win financial intervention for individuals, particularly those from economically disadvantaged backgrounds.
Benefits of Blockchain Technology for Individuals
International Money Transfer Made Easy
International money transfer necessitates meticulous attention to detail. High commission rates imposed by banks and businesses exacerbate the problem. However, if the right blockchain intervention is used, these issues may be disregarded.
The Conversation recently published an article that contrasted standard processes with blockchain transactions. The author used the example of a US worker sending money back to Ghana with a substantial commission expense – about 20%.
On the other hand, Bitspark (now defunct) used to charge only 1% for quantities over $150. This may be seen in the majority of foreign transactions these days. This is precisely why the commission rates of the major players have been reduced. Obviously, they must!
Which part of the society is prejudiced the most?
To be honest, everybody benefits from the international transfer advantage, but persons from economically disadvantaged backgrounds gain the most. Their already little salary won’t be reduced any further, and they couldn’t be happier.
1- Identity Realization — CRITICAL
Now, what is the most crucial aspect of a person’s identification? There isn’t a single thing. It might even be your birth certificate, provided you have a passport or a country-specific identity card.
What if none of them are available to you? Isn’t it a workaround? Let’s take a minute to think about people who don’t even have cellphones or laptops. The world isn’t always as bright as it looks. According to the World Bank, more than 1 billion people worldwide lack access to any form of identification. What’s more concerning is the fact that half of the women in developing countries lack identification.
Consider how terrifying it would be to be without any indication of your existence. Fortunately, Blockchain solves this as well by making it easier to create decentralized identities. It may be used to create an identity even if there is no formal identity verification, giving underprivileged individuals a chance to come forward.
This is like frosting on the cake for people who engage in a variety of fraudulent operations. Why? To summarize a long narrative, your identity is safeguarded by a Decentralized Public Key Infrastructure (DPKI), which is maintained in a Decentralized Storage, and you are the manager of the same.
2- The Motorized Boom
The Auto Pioneers’ preference for Blockchain technology was shown in a 2018 IBM report. According to the research, Blockchain will be directing the automobile sector by 2021.
Fifty-six percent of OEMs and 52 percent of suppliers feel that the possibility to build new business models will have a significant impact on the blockchain investments their organizations undertake.
Why such inclination?
There are several causes for this, ranging from supply chain management to manufacturing processes, financial management, and vehicle data security. The ability to engage in seamless purchasing and selling around the globe, on the other hand, appeals to both enterprises and customers.
Carnomaly, for example, has embraced the Blockchain and its accompanying cryptocurrency paradigm for the benefit of its clients. This architecture enables cryptocurrency payments and the construction of blockchain registries, which makes car verification even easier.
Carnomaly, for example, accepts payments in popular Cryptocurrencies such as Bitcoin, Ethereum, and LTC. The consumer may confirm the payment with the dealer from anywhere in the globe and have the automobile transported directly to them. It is simple, quick, safe, and dependable.
The Food Industry
COVID-19 demonstrated to the globe that not everything can be trusted. This is especially true when it comes to food imports. Food monitoring necessitates a complex method, which prevents businesses from taking all necessary precautions to assure safety.
While different safety requirements must be followed, food safety remains a worry, particularly in emerging and undeveloped countries. This is why the average person should be worried because this is how food production, processing, and transportation become so ingrained in people’s lives.
All of these worries may be easily avoided with the help of Blockchain. IBM Food Trust is a great illustration of how Blockchain can help with supply chain and monitoring challenges. By maintaining blockchain registries, the organization assures end-to-end visibility.
These registries are gold mines for establishing whether or not a product is fresh. Because we’re talking about Blockchain, the information is always available. The IBM Insights capabilities module maintains transparency.
Not only is the tracing speed improved, but it now reaches from tip to toe. As a result, the end-user always gets what is healthy. A few years ago, such a transformation in the food business seemed unthinkable. However, blockchain technology has ushered in a gradual shift that is being exploited for positive purposes.
You must read it once, the Best 5 Profitable Business in 2022.
Blockchain technology does not have a single side. While it may be the greatest option for avoiding third-party intrusion at times, it also allows for quick and safe cryptocurrency transactions at other times. That is indeed why it has been so operative.
Although most people think of blockchain in terms of enterprises, the end-users are the ones who benefit the most. This is because of the introduction of technology-aided the average man in preventing his transactions and identity from falling victim to fraud.