So, you into finance, right? Making frequent transactions are all about your money-making policy. Then you have heard of Blockchain technology. But if you are new to this gig, then this article will tighten up your skills. The world of trading and finance is evolving day by day. People involve more and more into this field of work. So, the flood of consumers and regular transactions are needed to be maintained. But this maintenance should be dynamic. In earlier decades, bookkeeping was a huge relief. The system of noting down all the information was known as bookkeeping.
But think of it like this way, you run a business. You have 70 customers right now. It is easy to get everything noted at this moment. But when the customer number increases, I sure it will, then what will you do? Like keeping records of 700 in handwritten elements is not a joke!
Then, technology will be our savior. In this situation, the tech which we will need is the Blockchain Technology. This is pretty much the new trend. But it is super useful as well. So, I hope you are tempted right now. I bet I got your attention already. So, what are we waiting for?! Let us dig in further to know more about this revolutionary tech.
Table of Contents
What is Blockchain Technology?
So, after introducing the term, I am pretty sure that the first question which comes to your mind is that, what is Blockchain Technology? Unfortunately, this concept is not that simple to explain in one word. Neither can you put it simplistically?
But that does not mean that you need to take some special training for this very purpose. Neither will you need a B.Tech degree in Business. Let us first break the analogical sequence of the term. The term is Blockchain. So, failing that apart, we have Block and Chain.
So, the block is something where we can store something. And if multiple blocks are attached with chains in sequential order, this term will be summed up as Blockchain. The concept of Blockchain Tech somewhat resembles the sequential image mentioned above.
Blockchain is a system that can record your transaction history. But unlike another record-keeping tech, this is not that easy to change, hack, or even manipulate.
What is Blockchain Technology continued…
This is perhaps the most efficient and secured record-keeping technology out there in the arena. But how does it works? That is a good question. AS I have mentioned before, this tech uses blocks to store information and chains that link one block to another. But having said that, I don’t mean that real blocks and chains are used in this tech. The blocks are virtual blocks of a database. A block can store up to 1 Megabyte of stored data. So, it is not necessary that a single transaction is being recorded in a single block. As data are volatile, so alliances can be continuously shifting it and making it impossible to trace without authorized access.
Modern-day banks and finance companies, in some cases, many organizations are keeping their information secured thanks to Blockchain Technology. But I get it. It is connected to the prime level. But what is all the hype about it? And another thing which is blooming inside my mind is the number of transactions made every single day. So, to find out the reason, we will have first to have a brief clarification about the transactions, and the reasons behind them kept secret and secured.
What is a Transaction?
The transaction is a mutual agreement between a particular buyer and a seller. In this case, not always a transaction occurs only in businesses. So, you do not need to do business to learn about transactions. The marketing, as I said to you before, is a mutual agreement. Not always can a transaction be settled within an exchange of money? It can be a swipe over or a valuable business.
So, why do we need transactions? The simple answer to that question is the fact of earning a sound living. Humans are social beings. None can stay without any exchange with others. But to enjoy some benefits and favors, you will have to give something in return. Before the invention of currency, people used to exchange goods for goods. This was tough times. But the biggest revolution in human civilization came in the lights of cash. After the invention of currency, men shifted their lifestyles into a much more sophisticated way. They started dealing with products using money. When people realized the importance of saving money, they started saving themselves. As the world population grew, the modernism stroked the veins of human civilization. People began to feel the necessity of banks. The s it was the time when the banking world started.
What should we keep Transactions safe and Secured?
So, in the current cruel world, the most significant insurance is your money. The amount which you have generated by working hard in your workplace is a potential risk of getting mobbed. So, people should be more and more sensitive about their transaction history.
Now, intending to keep the transaction safe and secret will not solve the problem for you. You will have to think smarter. Thanks to the evolution of technology, people are making more and more secure tech for preventing the violation of privacy.
Blockchain tech is one of the brightest solutions in this case. It not only secures your information but also helps you to keep track of your transaction history. So, Blockchain does allow us to make our history safe. But should we use this personally? In that case, no. Blockchain tech is too much complicated and is not efficient for a single user or transaction. It can store millions of millions of viable data in a singular block. So, if you are thinking of using this tech while calculating your grocery shop, then you are wrong.
Organizations like Banks, commerce industries, retailing, and whole selling industries, shipping, and manufacturing industries make a large sum of transactions on a regular basis. So, it is wise to have a tech that is so advance and secured in these specific organizations.
How does Blockchain Technology work?
Good question, fellas. I even asked myself, and I was like, okay, I got the point of Blockchain is one of the most data-carrying tech, which is merely unhackable. But how does that exactly work? Let me put some lights on your thought then.
As I have mentioned before, Blocks of a Blockchain can easily hold up to a massive amount of data in a singular block. It sounds simple right? Yes, the concept is simple and efficient. So, you can possibly think that it is easy to crack as well. We will have to break that block wide open, and we will get the required information at our fingertips. Um, we have an issue there. The thing is, all the blocks are encrypted into individual strings and arrays of codes. So, if you are looking for specific information, it becomes almost impossible to break into the blocks. On the other hand, a series of transactions are carried away simultaneously, so the workflow is infinite in a particular Blockchain Technology.
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Now, let us come to the user’s perspective. Suppose you are making a particular transaction from a renowned e-commerce website. Then what will you do? You chose a specific item which you intend to buy. Then you will add it to your cart. When you add that particular item in the cart, the Blockchain activated. This is simply a starter of a string. But the full information will be saved when the transaction is verified.
So, you have chosen the item, and after a good comparison, you will proceed to checkout. Then the block is at its prime peak. The main aspect is now to verify the payment and complete the transaction. When you are done with the payment, the required information of the block is fulfilled. Now, your transaction history is saved in that particular blockchain.
So, by far, you guys have got a brief discussion and clarification about Blockchain Technology. Now, it is time to show you guys why the big dogs and big industries need Blockchain Technology in their regular transactions.
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Why Do Companies Need Blockchain Technology?
As of now, the main question was, what is Blockchain Technology? I think I have made the doubts cleared and full running in the previous paragraphs. We have also gone through on how the Blockchain Technology works. Now, we will see why companies and organizations need this little beast.
You guys might be clear by now that the Blockchain Tech helps a certain organization to keep their transaction flow hidden and secure. But that is truly scratch. The whole surface is yet to come. Let me put it like this way. Have you ever wondered why the online retail market like Amazon keeps popping the things which you desire to buy now or in the near future? But they still read your mind.
So, how do they do that? I think you guys have guessed it by now. Yes, it is for the lights of Blockchain Technology. It helps the companies to have a better understanding of the consumer’s interest. Thus the item which you have been looking forward to suddenly pops up while browsing or surfing the particular website.
Some of us will have a solid debate on this portion. I can understand the act of privacy. But at the end of the day, you are surfing on their website. So, they have the full authority to get into the information and conduct strategies.
Now, you might wonder the fact that the chain is run by the organization itself. So, it must be biased at some point in their outcome or appearance. But the thing is Blockchain Tech is a little bit on the crazier side.
Why is Blockchain Tech Non-Partial?
So, basically, after what is Blockchain Technology, we come down to partiality. I will explain this in a much more funky way. We all know that the main aspect of the modern-day is making a globally accredited digital currency.
I know many companies have tried and failed; some are still running with great pride. Take Bitcoin, for example. The main reason is that this is not partial to anyone. So, the people or the organizations which have created the digital currency have not benefited over the transactions. SO, it remains fair and honest to the consumers as well.
But there are some flaws as well. The main issue is trust. As long as I am influencing you guys on social media, I am under a Blockchain as well. Facebook and other big dogs in the social media arena use Blockchain tech to enhance the user interface and as well as save their personal information.
I am literally like a kid in the candy store when I see something related to technology. The discussion was worth of gen in real life.
Wrapping Things Up!
So, I hope you are now clear on the “what is Blockchain technology” part. I also have made a huge elevation in all the pros and cons of Blockchain Technology. Despite being some minor disruptions, this Blockchain Tech is a serious business, especially when you are concerned about your secrecy of information and transactions.
On that note, I hope you guys have enjoyed this article so far. Unfortunately, I have to wrap things up for now. So, I hope you guys stay safe and stay home. And was your hands frequently.
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