Blockchain is a revolutionary technology with a lot of potential that can be used in all kinds of industries.
While other domains, such as government institutions, consulting firms, and academic sectors, are still wary of testing waters, banks have already set up elaborate R&D laboratories and state-of-the-art infrastructure to grasp its industrial possibilities.
Blockchain, What Can It Do?
This is in addition to incorporating innovative ways to use the cryptocurrency or ethereum blockchains, sometimes using a completely new one altogether.
Even though it has been almost three years that this unique technology has been tested for its latent potential, it has now started bearing fruits of labor.
Despite a lack of clarity about its true abilities, here are some things that the blockchain can achieve for its users: Traceable Digital FootprintsThe one thing that makes blockchain so useful for many industries is its ability to establish the identity of the user.
The cryptographic keys that are created by combining public and private keys generate a strong digital presence that can be traced back to the person in its possession.
Personal keys are used to authorize digital transactions, while the public keys allow open identification.
A Reliable Recording SystemThe technology that fuels cryptocurrencies have changed the way information is logged and distributed, revolutionizing the recording system.
Static data, or registry, can be saved on blockchains in a number of ways.
As an unencrypted data, they are transparent to all participants in the network; at the same time, encrypted data can only be viewed by those participants who have the decryption key.
Hashed data sort of creates digital fingerprints, validating the registry’s integrity and the fact that it has not been tampered with.
This system of record storing is perfect for businesses that do not work from the same facilities and spend an inordinate amount of money and time in checking inter-company records.
ImmutabilityAnother important feature of this technology is its irreversible nature.
The sheer effort that goes into making changes in a single entry can discourage the meddler from tampering with the records.
If one has to change an entry in the database, they would be required to change all the records on every single node, thus making the process almost impossible to execute.
Underlying Platform Crypto-currencies were the first ones to use the blockchain technology.
While these digital currencies continue to thrive, the people have acknowledged the other uses of its underlying platform and recognized that it can be transferred to other areas, such as smart contracts.
These contracts are a digital relationship between entities that can be formed over a secure and unbiased platform.
Compliance AutomationIt is not just a reliable storehouse for information safekeeping, this technology can also enable regulatory guidelines in a coded form.
Simply put, the creation of valid blocks could be a rendition of government’s legal digital code.
This could help banks improve their output in anti-money laundering initiatives.
The blockchain mechanism can flag certain type of entries that stray away from the exact rules allowing banks to automate transaction validation.
To gain new insights about blockchain and its benefits, visit CoinSick.
com, which is a dedicated cryptocurrency blog providing relevant and useful information.
