Bitcoin is a form of digital currency designed to replace the existing monetary system. Owing to the low transaction fee, non-requirement of a third party and ease of transaction it is being looked as a really good alternative for fiat currencies. It is powered by ledger based technology that depends on high computing power to enable transparency, speed and decentralization. While the fate of the currency is still in question, the underlying technology has received wide reception for its applications. Technology enthusiasts were quick enough to understand the disruptive nature of Blockchain and immediately hunted for real time applications. Let’s look into the characteristics that make Blockchain so disruptive:
On a holistic level, Blockchain technology can be termed as a collection of databases. The only difference in this network is that unlike traditional databases, each database can be operated by different entities. To be more specific, independent nodes can access this network and operate on it. Traditional databases have few limited users who have complete control over the database. Blockchain network is completely decentralized with the operations requiring approval from each node, making it transparent and democratic at the same time.
Few variations of the same ledger based technology find numerous applications in the field of financial services, ecommerce, supply chain and wholesale industries. With right constraints and access Blockchain is sure to revolutionize many fields in the near future.
Blockchain has gained quick reputation for applications in Finance owing to its immutability. Data written to a Blockchain is literally data etched in stone. Owing to this immutable or irreversible property, Blockchain can be used to track transactions of an account, products in supply chain and land registries in real estate.
Exchange of Assets:
A decentralized network that is immutable certainly forms a strong foundation for the development of an exchange platform. That is how Blockchain has served with Bitcoin and it can be extrapolated to serve as an exchange means for other digital assets. Most of the major banks are looking into this aspect to enable quick cross border transactions and trade settlements.