Blockchain technology was first designed in 1991 by Stuart Haber and W. Scott Stornetta. The two scientists needed to implement a framework where the document timestamps could not be altered. With the introduction of Bitcoin in January 2009, blockchain had its first practical application. Besides, the Bitcoin protocol was based on the blockchain. In a research paper launching the digital currency, Bitcoin’s pseudonymous developer Satoshi Nakamoto explained it as “a new electronic cash system that’s fully peer-to-peer, with no trusted third party.”
Pros and Cons of Blockchain
For all its complicated nature, blockchain‘s potential as a decentralized type of record-keeping is nearly unlimited. From more prominent user privacy, increased security, lower handling charges, and less error, blockchain technology has several uses in almost all the sectors. Blockchain technology Pros and Cons are discussed below:
- Precise accuracy by eliminating the involvement of human in the verification
- Reduction in Cost by not involving the third-party verification
- Decentralization makes it harder to modify
- Transparent technology
- Transactions are private, secure and efficient
- Higher Technology costs related to mining Bitcoin
- Low transactions every second
- Have a background of illegal activities
Benefits of Blockchain Technology
Few benefits of Blockchain technology are discussed below:
- Increased time efficiency because of the real-time transactions
- Direct Transactions remove the intermediary and overheads costs
- Decreased risks identified with frauds, tampering, and cybercrimes
- Increasingly transparent procedures with record creation and tracing
- Exceptionally secure because of a decentralized and cryptographic blockchain protocol
Application of Blockchain Technology in Various Sectors
In the healthcare division, the hospital’s patients and other parties can give importance to the blockchain, so that they can share permission to their networks. Besides, it will enable them to appreciate integrity and security with no compromise on the information.
Blockchain permits improved precision of data in the financial services framework of the bank. Currently, few of well-known banks have tried different things with blockchain and have taken forward this technology in its applications.
Academics and Education
In the Educational segment, the blockchain can be used for managing the verification process. It will help in decreasing the fraudulent claims of undeserved educational credits.
The Accounting business can be more transparent by utilizing the technology of blockchain. It uses smart contracts and verifiable transactions.
The ride-sharing organizations can take up all transactions through a blockchain framework. Moreover, the drivers and riders can make use of the client-driven and value backed marketplace with the assistance of the distributed LEDGER technology.
The absence of transparency is seen during and after transactions in purchasing and selling the property. The blockchain can check the possible fraud, and lessen the amount of paperwork, and mistakes in public records.
IoT and Networking
Both Samsung and IBM are utilizing blockchain technology called ADEPT to create a decentralized system of IoT devices. Moreover, Blockchain is adopted in several areas in networking for its advantages of privacy and security.
Benefits of Blockchain in other sectors
Due to its vast benefits, Blockchain technology is used in other sectors like, Insurance, Sports Management, Stock trading, Gift cards and Loyalty Programs, Supply Chain Management, Government and Public Records, Wills and Inheritances, Law Enforcement, 3D Printing/Manufacturing, Gun Tracking, Energy Management, Crowdfunding, Credit Histories, Retail, Charity, Messaging Apps, and much more.
Social Impact of Blockchain technology
The social impact of blockchain innovation has just started to be acknowledged and this is just the beginning of a new era. Cryptocurrencies have already been used worldwide for different types of transactions. Cryptocurrencies are used through digital wallets, for the arrangement of loans and payments. Considering the information that there are over 2 billion individuals on the planet today without a bank account, such a move towards blockchain will surely change lives and in a more positive way.
Every new technology is intrigued by Blockchain technology. It is used in critical applications like identity verification, which has been adopted worldwide. It is viewed as one of the emerging technologies and it can provide secure and transparent service and can validate each transaction. Even though blockchain is disruptive, it is moving forward.