Many of the transactions we carry out today use a foundation of trust. We trust that when we leave our money in a bank, it’ll be kept safe. We trust that when we give a business our debit card. We conduct not just monetary transactions with complete trust; we’re also quick to share our data online.
In a time when our data is more valuable than ever, it’s more necessary than ever that such transactions use a technology that can ensure our personal and financial security. Blockchain might be that technology.
But What is Blockchain?
Simply put, a blockchain is a series of data divided amongst a network of computers. Network means that no singular computer can hold all the data on a blockchain at a given time, so if one computer in the blockchain network gets hacked or compromised in any way, the content on the blockchain (cryptocurrency, NFTs, etc.) remains secure. This decentralized network of dispersed information is what makes blockchain technology completely un-hackable.
The Impact of Blockchain
Blockchain is still an infantile technology, but we’ve already seen the impact it can have on our daily lives as we advance.
Cryptocurrency
Blockchain is the backbone of cryptocurrency trading, which saw a surge in popularity earlier this year. Bitcoin is experiencing a boom, and other cryptocurrencies such as Ethereum, Litecoin, and Dogecoin are also gaining attention. As more industries adopt accepting and using cryptocurrency, blockchain technology will rise. It may be a long way away, but eventually, cryptocurrency may become a standard means of exchange, even replacing paper money altogether.
NFTs
Alongside the burst in mainstream relevance cryptocurrency trading has seen this year, NFTs have also been a hot topic. Nonfungible Transactions are essentially media stored and distributed over blockchains. If cryptocurrency is virtual money, NFTs are virtual products. The new medium has been prevalent in art, generating millions of dollars, but we’re yet to see its long-term worth in the general mass market. Some doubt the longevity of NFTs, but in a digital world where most of what we own exists on a screen, the idea of everyone embracing the technology isn’t so farfetched.
Banking and Finance
Banks conduct hundreds, if not thousands, of transactions every day. With so many people and businesses relying on banks to keep their money and assets secure, it should be no surprise that the forces of banking and blockchain together would meet perfectly. By acting as a virtual, impenetrable ledger system, blockchains can make the banking industry more efficient and secure for data processing and transactions than ever before.
However, other blockchain-based services may threaten the power banks have always held over the financial sector. Governments worldwide are already trying to pass legislation to regulate blockchain technology.
Meanwhile, some banks partner with blockchain-based cryptocurrency services to survive what some see as a digital revolution of the financial sector. It’s difficult to say where precisely the financial industry goes from here. In terms of our lives, blockchains will allow our financial transactions to be more secure than ever.
Crowdfunding
Crowdfunding has been a popular way for independent creators to fund their projects for some time now; by leveraging the generosity of various online communities. Successful crowdsourced projects have appeared in multiple industries, including music, movies, books, video games, new technologies, and inventions. The most successful crowdfunded project has been a smartwatch by the company Pebbletime. It raised over $ 20 million.
The biggest platforms in the crowdfunding market have always been Kickstarter, Gofundme, and Indiegogo. Now, Pledgecamp is making a name for itself by announcing its intention to leverage blockchain technology in crowdfunding. According to Pledgecamp, blockchain will allow for greater transparency between backers and projects seeking funding; via intelligent contracts and letting funders see the step-by-step processes.
Voting
For years now, the modern democratic system has been a hot-button topic, with fears of foreign interference and vote rigging. Blockchain can ensure that elections are carried out securely by providing an incorruptible platform for registering, tracking, and tallying votes. We likely see blockchain technology becoming a standard tool in the election process.
In Conclusion
There are many ways blockchain technology is changing the world. With digital security being a primary concern for many people, such innovation was inevitable. Although we’re only starting to understand how blockchain can help us, the promise of a safer future sounds excellent to look forward to.
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