Blockchain technology – what is it?
An immutable database of information known as a blockchain makes manipulating, hacking, or cheating the system difficult or impossible. Finance is not the only area where blockchain technology is used. Transparency and traceability can be incorporated into any multi-step transaction.
By using a blockchain, Bitcoin is built upon the technology of blockchain technology. Blockchain technology possesses several core features, including decentralization, transparency, immutability, and automation.
With Blockchain Technology, transactions over (P2P) Peer-to-Peer networks can be verified without having a third party verify them. There is no need for any middle man.
A blockchain has the following main components:
Distributed ledger technology (DLT)
Every member of the network has access to transaction data stored on the distributed ledger. Blockchain is an example of distributed ledger technology, which allows multiple users to maintain copies of shared ledger records.
Settlement in a shorter timeframe
The traditional banking system is quite slow and many institutions do not operate during holidays or weekends. Usually, processing a transaction takes a few days, even after all settlements have been completed. Additionally, all the data is located in a centralized database, which can be quite easily corrupted. However, they keep back-ups. Comparatively to traditional banking systems, blockchain offers faster settlement. By using blockchains, transactions can be handled in 1 to 30 minutes. With international payments, sometimes the process can take up to 2 working days, but with blockchains, costs and time can be reduced drastically.
Records that are immutable
After a transaction has been recorded to the shared ledger, it cannot be changed or tampered with. Adding a new transaction to reverse an error involves adding a new record to the transaction record. Both transactions will be displayed. Verifying transactions is one of the most important roles that miners play
Contracts of the future
Computer programs or transaction protocols are smart contracts because they are designed to execute automatically. There is a great deal of use of smart contracts in DeFi.
Blockchain is now a widely used technology:
- Cryptocurrencies like BTC, ETH,LTC,SOL
- Defi (Decentralized finance)
- NFT marketplaces (Recently Amitabh Bachchan has lunched own NFT).
- Supply chain
- Cross-border payments.
- Personal identity security.
- Anti-money laundering tracking system.
- Voting mechanism
- Original content creation
Crypto transactions are being better regulated in many countries, fostering user trust and confidence. NFTs have recently gained interest from Indian Bollywood actors.
How did blockchain and cryptocurrency gain popularity?
After Elon Musk and Twitter’s CEO (Jack Dorsey) tweets, people are almost always mentioning bitcoin, doge coin, etc. In a related development, Twitter is enabling tip-based transactions on bitcoin, and El Salvador is the first country to accept bitcoin as a legal tender
Tokens based on cryptocurrency and memes are selling well. Large institutions are now investing in cryptocurrency.
Because of cryptocurrencies, blockchain technology has gained popularity. Bitcoin and other cryptocurrencies are built on the blockchain.
India Prime Minister Mr. Narendra Modi has highlighted many times protentional of Blockchain technology “Disruptive technologies such as Block-chain and the Internet of Things, will have a profound impact in the way we live and work. They will require rapid adaptation in our workplaces.”
Tweet Link: https://twitter.com/pmoindia/status/965463114367033344?lang=en
Cryptocurrencies and bitcoin are only one aspect of blockchain technology. Transparency and fairness are increased through its implementation.
SmartViewAi.com was founded by Pushpendra Singh, an expert on decentralized finance awareness and blockchain applications, focused on their respective markets. Pushpendra Singh comes from an IT background and understands and appreciates the vital contributions that blockchain technology/Defi can make. The experience he has in centralized finance, supply chain management, and the cryptocurrency market spans more than ten years. His hobbies include making Hindi-language YouTube live videos on blockchain awareness. Thousands of people watch his videos every month.