What’s a block-chain?
If you have not heard about it yet, well you are going to hear about it now – quite a lot! The meaning and the concepts of Block chain technologies have been extensively talked about online and also in our earlier blogs, feel free to go through them for a thorough understanding of the basic concepts of BCT.
For all the procrastinators out there, here’s the chewed-up, simple version, block chain is a continuously updated record of who holds what. These records are then split into “link blocks” and secured using Cryptography. One wouldn’t be considered unwise to conform to the notion that Block Chain Technology(BCT) is going to revolutionize the trading system that is currently practiced all over the world.
Block chain Technology has recently made its way to the modern market place and very soon the average consumer will be an avid user of BCT.
Below are some of the reasons why BCT is a game changer:
Block chain has been trending on all of the recent business and e-commerce headlines due to its simple yet innovative accounting system of data sharing between a decentralized network of computers that constantly validate the information stored, there by updating existing blocks and creating further blocks.
Another unique aspect of the block chain technology is, it functions as an automated trust, trust that is inherently built into the system by the system. A “distributed ledger” which contains the list of records is then shared on a secure & decentralized network that is available for everyone to see and verify.
This level of transparency provides a sense of trust to the concerned parties involved in trading via BCT. A trust factor is inculcated among the baby-boomers of the modern marketplace so they aren’t too apprehensive when it comes to incorporating BCT in their day-to-day transactions.
Safety & Security
Additionally, due to its distributed nature of decentralized data flow, block chain technology is considered to be un-hackable and tamper free. The reason why block chain is attributed as “tamper-evident” is simply because everyone in the network will be aware of any tampering done on a particular block as any act of data tampering would result in creation of further tampered blocks which would not match with the data stored in other systems of the network and is therefore rejected.
Block chain Technology would substantially improve the level of security in any industry that has a history and propensity for likelihood of fraud involved in the transactions. This is one of the main reasons why major financial institutions around the world are beginning to use block chain technology for international transactions.
Efficient & Effective
Intermediaries (3rd party transactional portals) would no longer be involved in transactions where their involvement does not bring any additional value and is counter cost effective. In other words, Block chain technology has the capability to dis-intermediate the involvement of 3rd parties that are involved for no apparent reason besides providing a sense of pseudo-security to the transactional process. This would also decrease the transactional costs which occur due to the involvement of said intermediaries.
The exponential advancements made towards decreasing the transactional time for all international transaction have given BCT another edge in the modern market place. Many experts believe that BCT is capable of reducing the average transactional time from well over 2 hours to less than 15 minutes which is clearly more efficient than any traditional method of online/offline transaction available today.
Throughput – AKA Productive Output
There was once a time when trading via crypto currency or any other medium of BCT was frowned upon due to its extremely low bandwidth and incapability to perform large number of transactions. The bandwidth of Block chain technology does not hold as much as traditional 3rd party payment portals such as VISA or MasterCard – This statement was once true, more than a decade ago. However, through constant developments in the block-chain technology over the past decade has enabled the transactional limit to increase up to 400,000 transactions a second where formerly, the transactional limit was as low as just 10 transactions per/sec(Bit-coin).
This increase in “Throughput” is another reason why many major financial institutions over the world are priming to optimize their transactional limit through the usage of crypto currency or other forms of peer-to-peer trading with the attributes of BCT.
The elimination of middle-men from the virtual marketplace would upset the traditional and commercial status quo that has been established and acted upon thus far. However, change is inevitable. The whole world will witness a revolution in the way the internet operates once BCT has been widely accepted and implemented. Until then, “please wait while you are redirected to the gateway you choose to make payment”.
We hope this gave you further clarity on the applicability of block chain. More articles are scheduled in the weeks to come which revolve around block chain and its modern day applicability. Watch this space and drop a comment below if you want to read about anything specific to Block Chain Technology.