Are you wondering what can a blockchain do for you or your business? Most probably, you have heard of blockchain technology. However, you may still be asking yourself the question; what can a blockchain do? Well, the truth of the matter is that blockchain can help individuals to accomplish a wide range of tasks.
Blockchain technology presents a new way of storing and distributing information. You can view it as a shared virtual ledger that is owned by various users that operate in the broader blockchain network. Any slight change to the virtual ledger must be verified and validated by a majority of the nodes before it reflects.
Today, the blockchain is being used for a whole lot more than just making payments outside the traditional banking system. Since blockchain technology is highly distributed, any marketplace or industry can use it without worrying about the risk of a single point of failure.
And since the transactions can’t be modified, the question of whether the record keeper can be trusted is eliminated from the equation.
What Can a Blockchain Do?
So, have you been wondering what blockchain technology can really do? Read on to find out.
This is one of the most common uses of blockchain technology. Bitcoin introduced the first blockchain tool for making regular payments without going through traditional banks. One of the key features that made bitcoin distasteful to the banks is making the underlying blockchain technology attractive to clients.
However, a lot of businesses from all over the world have embraced Bitcoin as a recognized payment method. Also, some banks such as the Standard Chartered Bank and Santander have also embraced blockchain technology and allow their clients to settle payments using bitcoins.
Sending Money Abroad
Sending money to foreign countries can take days if not weeks. This is frustrating and devastating since it could mean that your family or friends lack necessities as they wait for the money to arrive. Currently, a majority of the banks hold foreign currency in Vostro/Nostro accounts in other nations and use the SWIFT inter-bank messaging system to arrange for transfers.
If there is an agreement between the two banks involved, the transfer can be completed on the same day. However, in some countries, where foreign currencies are strictly controlled, your bank must use agents which is more expensive and time-consuming.
Blockchain technology dramatically reduces the cost and time of sending money abroad. Banks are now connected via a blockchain network and all transactions fulfilled automatically. Once cleared, transactions settle in a few minutes leaving behind a permanent and transparent record for both banks.
Lastly, blockchain technology can also be used to prove immutability since every database keeps a history of itself. All databases in a blockchain network are immutable. This means that it would require a significant effort to change a single entry in the database since it requires changing all the data that comes afterward as well. This is supposed to be done on every node which is quite impossible.
If you have been asking yourself the question; “what can a blockchain do?”, then you now have a clear picture of what this technology can really do. When this technology catches on, it will only be a matter of time before it becomes a force to reckon. Get more insights about blockchain by reading cryptocurrency news here.