Blockchain is the technology that establishes digital currencies and works to ensure that all transactions are carried out in a proper manner and are accurately recorded. It is very simple to use and exists as a database which is shared and filled with entries which need to be confirmed and encrypted. It is already used by many organizations as a book keeping platform or a ledger that can never be corrupted, very transparent and one which bypasses any kind of censorship.
Blockchain is well known as the technology behind Bitcoin and cryptocurrencies, digital currencies in which encryption techniques are used to regulate the generation of currency units and verify fund transfers. Besides that, it has other benefits that go well beyond the digital money.
Blockchain helps in enabling the tracking and the management of digital identities and ensures they are efficient and secure thus contributing to seamless sign-on and reduction of fraud. It also helps in decentralizing the cloud based storage as it can use its network to power services like Storj, a distributed, encrypted, and fast object storage based on blockchain technology exactly and peer-to-peer protocols, and this ultimately improves security and reduces the dependency levels. Besides that, users can also rent out the excess storage capacity they have, thus opening up new markets.
Blockchain can also allow the establishing of services like Bitpesa, a digital foreign exchange and payment platform for frontier markets, which aims to solve African money transfer problems. Thanks to blockchain application Bitpesa can provide businesses all over Africa with foreign exchange built in and business to business payment features. With the use of blockchain, cryptocurrency can help in encouraging business practices that are ethical as Blockchain will enable possible tracking of every transaction with utmost transparency.
Blockchain can also be used in entering digitized contracts that are programmable. Here, the developer can just implement the legal contracts as statements and variables that can release fund using Bitcoin network instead of trusting in a single authority. Allowing computers to control contracts will enable businesses to be more efficient and legal systems to be more equitable. Furthermore, cryptocurrency can help in evoiding corruption in charitable organizations as incorporating blockchain will help in keeping organizations accountable and thus eliminating corruption cases.
Moreover, the immutability of ledgers in Blockchain makes it suitable for tracking goods as they move along the supply chain and it can also be used in real estate market as it will expedite sale of homes by verifying finances, reducing fraud and offering transparency in all the selling and buying processes.
Therefore, the technological potential of Blockchain is very wide and thus organizations, government institutions and even companies can embrace its use as soon as they realize all its benefits.
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