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8 Reasons Why Blockchain Technology Is the Future

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1st Oct, 2020
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8 Reasons Why Blockchain Technology Is the Future

In simple words, Blockchain is a cloud-based system to store information. Blockchain is the underlying network of cryptocurrency. There are many cryptocurrencies in the market. The most important ones are Bitcoin, Ethereum, Tether, and XRP.

This technology enhances flexibility, security issues, and even data transfer processing due to its advantages. In this article, we will discuss Why Blockchain Technology is the future of digital pieces of information. We need in-depth knowledge of what Blockchain is, how it works, and it uses it to understand this.

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What is Blockchain?

Scientists first proposed the Blockchain technology in 1991. The original motto of this technology was to store digital data so that not to get it modified. Blockchain acts as an open-source database.

Later a group of Computer Scientists adopted Blockchain technology to form a digital cryptocurrency named Bitcoin. Once a blockchain contains written data, it is hard to change it. This property enhances the security of cryptocurrency.

In this technology, each block represents a structural and functional unit. A block holds data, the hashed value of that block, and the hashed value of the last block. These blocks link each other similar to a chain.

The Data in the block may vary based upon the usage of the Blockchain system. For instance, when we talk about Blockchain in bitcoin, the stored data refer to transaction details. A hash is like a fingerprint for digital information. Different systems use different hashing algorithms. For example, Bitcoin uses the SHA256 algorithm, while Ethereum uses the ethash algorithm. Simple manipulation of Data changes the hash code.

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Due to this technique, the Blockchain acts as such a secure system. The hash of the last block acts as a link to that block. It resembles a linked list structure with hashes in place of pointers. So, a change in data of any block changes its hash. So, the next block doesn’t point to this one and no other block too. That’s why it is secure. It resembles a linked list structure with hashes in place of pointers. A change in data of any block changes its hash. So, the next block doesn’t point to this one and no other block too. That’s why it is secure.

Besides, a Blockchain network uses a P2P system. In this network, a copy of the Blockchain is present to every user. So, to tamper the network, one has to change the information in the whole chain. Thus, it becomes nearly impossible to break security. This is the reason why Blockchain is the future of modern data transfer technology.

Benefits of Blockchain

Data manipulation with time

Blockchain shows the history of data. In other databases, we get the updated data only, but we get the history of updating in Blockchain’s case.

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Decentralized System

Blockchain is a decentralized system. It means there is no single unique database to store information. Rather there are many copies of it. So, no one can target a single structure.

Controls

In Blockchain, there is no single control order. The copies of Blockchain are available in every node and updated everywhere too. So, the information is secured.

Must Read: How to Make a Successful Career in Blockchain? Everything You Need to Know

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Why is Blockchain the Future?

Starting from Crypto-enthusiasts to ending with Business minds, Blockchain is a solution to many problems these days. The concern may be about security or smart transfer of data. Blockchain promises to provide ways. With the advent of Quantum computer security in classical systems is of great question. The future may ask to secure every system even more. Also, it reduces the risk of hacking and data tamper.

A Blockchain is a primarily decentralized structure. So, the usage of this system also rests upon decentralized technologies. Before this, we need to know about Smart Contracts.

1. Smart Contracts

A smart contract is a digital form of contract which has programmable architecture. So, the details of the contracts are stored in the Blockchain block. This enhances communication. It is also useful to keep track of assets for the long term. Also, relations with consumers are dependent upon smart contracts.

2. Web Servers

In a web server, data security is very crucial. Typically, a web server has two parts. API and Data. Each block here serves as a node and joins the request-response cycle.

3. Banking

It typically takes multiple hours to encash a cheque and update the statement. While using Blockchain technology, it will be done in merely ten minutes. The time needed is the same as the time necessary to add a block in the Blockchain.

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4. Cryptocurrency

Uses in Bitcoin and other cryptocurrencies is a well-known application of Blockchain.

5. Healthcare

Healthcare professionals can use Blockchain to store patient’s records safely there. It will enhance the safety of the information.

6. Records

Property records should use Blockchain with Smart Contracts. This will uphold the statements to all the parties.

7. Voting

Using Blockchain in Voting will indulge in the safety of counting and misinterpretation.

8. Digital Marketing

With easy Consumer-market relations and secured way of data transfer, Blockchain has a great opportunity in Digital markets too.

We can see the uses of blockchain in various industries. From money transfer to confidential information stores, everything is more secured through Blockchain. That is why Blockchain is the future of data transfer and security infrastructure technology.

Also Read: Cryptography in Blockchain: Types & Applications

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Wrapping Up

Blockchain helps your marketing benefit considerably. You can target whom you are willing to; there will be no wastage of money. Reading this article, you will surely understand why Blockchain is the future as far as marketing strategy and technology is concerned. 

If you’re intrigued by reading this article and want to start your Blockchain career, you can visit upGrad. Check out IIIT-B & upGrad’s Advanced certificate program in blockchain technology to learn building smart contracts and chain codes. The course will surely help you understand Blockchain’s basics and its future in marketing strategy and technology.

Profile

Mayank Sahu

Blog Author
Mayank Sahu is the Program Marketing Manager with upGrad for all emerging technology vertical. His past experience is in analytics industry extensively in healthcare Domain. Mayank has completed his Graduation from IIT Delhi.
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Frequently Asked Questions (FAQs)

1Why should we use Blockchain?

There are various reasons to use blockchain technology. The Blockchain is a decentralized technology. There is no central controlling entity in charge of the network. Instead, each node keeps a copy of the ledger and contributes to the upkeep of the Blockchain network. The data on a blockchain cannot be altered or updated. When a transaction is recorded in the ledger, it is permanently stored there. Blockchain provides data security since it is impossible to hack. To work, Blockchain relies on consensus processes. A consensus algorithm is a mechanism for achieving consensus on the current state of the distributed ledger across all nodes in a Blockchain network.

2How has Blockchain been used in the real world?

Blockchain is being utilized in supply chain management because it may lower costs and risks throughout the supply chain. It also has the potential to improve supply chain transparency. It's a type of database that's utilized in healthcare to keep track of patient information. In addition, Blockchain is employed in digital voting. The token-based system built utilizing blockchain technology will ensure the design of one immutable vote per person. It's a term used in the real estate industry. The blockchain stores ownership and title information, making it easier to transfer and trace ownership. Finally, it is employed in the media because Blockchain can ensure data integrity, allowing ad agencies to target the appropriate customers and musicians to collect proper royalties for their original compositions.

3What are the various Blockchain types?

Blockchain comes in four different types mostly. A public blockchain is a network on which anybody may join and transact. A private blockchain is a permissioned blockchain in which users are subject to specific restrictions. Anyone who wants to join the network is unable to do so. The ledger is also accessible exclusively to the organization's permissioned users. A consortium blockchain is comparable to a private or permissioned blockchain, except that instead of a single organization, the network is administered by a group of them. On the other hand, a hybrid blockchain mixes public and private blockchains. It combines the advantages of both blockchain types to provide both control and freedom.

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