Like the internet, Blockchain is profoundly changing everything. Read on to learn why you should be watching this space closely. Many are not aware of this – you can invest in the biggest technology revolution since the internet, Blockchain.
What is Blockchain?
A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. It’s a growing list of records linked using cryptography making it difficult-to-hack. The technology allows digital information to be distributed, but not copied.
Verification of each transaction is done by a distributed network which allows for transparency as copies of transactions are always being recorded and circulated among the network, making it impossible to hack. Every transaction requires verification, hence, if a fake or duplicated Token is used, the database has no record of the transaction and its automatically rejected. this results in total transparency and automatic trust – a very important concept!
Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data; any involved record cannot be altered retroactively, without the alteration of all subsequent blocks.
The concept was introduced in 2008 by Satoshi Nakamoto, and then implemented for the first time in 2009 as part of the digital bitcoin currency. The Bitcoin Network is the first successful implementation of blockchain technology. Blockchain is the technology that underpins digital currencies like Bitcoin, Litecoin, Ethereum, and the like).
Blockchain Uses
Sounds simple enough, right? But imagine how industries will change when trust is automatic. Very soon, banks will be transacting Billions everyday via Blockchain and soon after, consumers will pay bills, receive salaries, manage pensions and benefits, all recorded on Blockchain. While Blockchain is a perfect vehicle for financial transactions, it does not stop there. Blockchain is already applied to areas like insurance claims processing, asset management, property ownership (houses, cars, jewelry, patents, company shares, healthcare, personal identification) voting, government records and even music. this is why Blockchain is going to change everything.
Blockchain in Finance
National banks and regulators, exchanges and investment banks across the world are taking seriously the financial innovation of distributed ledger or block chain technology. The block chain, aka Trust Machine underpins “crypto currencies” such as Bitcoin; but it goes beyond digital money. It provides a shared, trusted, public ledger that everyone can inspect, but no single user controls. It is at the cusp of revolutionising international money transfers, trade finance, syndicated lending and collateral management, among other applications. As it allows for almost instantaneous payments and settlement, the potential impact on the role of traders, quants and other financial technologists cannot be underestimated.
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