Many people talk about blockchain and how it has the potential to change the world. But what exactly is blockchain? And how could it change the world? To understand the answers to these questions, defining the technology and some of its features is important. A blockchain is a form of database that is, in many ways, an evolution of current databases. Storing information in the blockchain is different because unlike most other forms of storage, information is shared. Blockchain operates based on consensus where any change to the ledger is verified and approved by all network parties.
Why is blockchain important?
Blockchain has brought to the world a new way of doing business by handling complex tasks effectively. It is a faster and cheaper system of information storage that is also scalable. This technology can be applied in many differed fields as it has huge potential. The following are the five most important ways that blockchain could change the world.
Faster overseas money transfer services
Even though there have been major improvements made in the financial world, it is still impossible to send money quickly and efficiently. Banks and other financial institutions that handle money transfer, especially overseas territories, are still using ancient technology. Sending money is thus a painstakingly slow process that might take several days. There are also many intermediaries involved in the process which make the process slower than it should be. Needless to say, transferring the money ends up becoming a costly process. With blockchain though, it is possible to reduce the time and money used dramatically. Solutions like xCurrent by Ripple have already proven the efficiency of blockchain in this field. A single blockchain network can connect all the banks and make the money transfer process a matter of seconds.
Carrying out trade will be easier
Secondly, doing any business transaction will be a much easier process. Today, if you want to purchase property, for instance, you will have to deal with an excruciating process that involves huge paperwork. Today’s bureaucracy is mostly due to a lack of trust in business circles. The blockchain system brings a lot of credibility to the business world, which can help trading become a much more efficient process. Blockchain removes the need for several verification processes as it has a single foolproof verification system. Other areas like the forex market would also benefit a lot from this technology. To start with, removing the complicated verification processes would mean that trading institutions like banks would be more trusting of the market and the actors in it. This would bring efficiency and increase the volumes of trade.
The healthcare scene would improve radically
One of the most persistent medical world issues that lead to huge setbacks is the lack of a system that keeps all medical records for patients in a single file. The current setup in this field means that your medical records are spread out among the many institutions that you might have visited over time. The lack of access to the fragmented records makes it harder for doctors to address health problems effectively. With blockchain though, records would be stored in a record accessible by anyone on the network at any time.
Purchasing goods would be a much more credible process
As things stand, it isn’t easy to verify the authenticity of products sold in the market. The current system that handles verification of goods is old, slow and not as efficient as it should be. Thus, many people end up buying counterfeit goods without knowing, which brings down the trust that people have on purchases. With blockchain though, every product will be assigned authentic identification tags which will stick with the product for as long as it is recorded on the blockchain network. Falsifying information on the blockchain network is impossible, and this means that products will always remain authentic.
The average value of your property will rise
Finally, blockchain can remove the need for intermediaries when the network becomes available to all. This means that selling or renting out property will be an easy and direct process not controlled by middlemen and third parties. Since blockchain creates a direct link between you and your clients, you will not lose any money to intermediaries who would otherwise determine the value of your property.