In this
article, we will discuss why blockchain is so important? What are the uses of
blockchain, and what is the future of blockchain technology?
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| Blockchain |
How Blockchain Technology
will Change the World?
Blockchain
technology may change nearly every industry in the near future. It can create a more
efficient and prosperous world and may help boost global gross domestic product
(GDP) over the next decade.
Blockchain as a service(BaaS) is one of the promising blockchain trends that has been integrated with
several startups and companies.
What is
Blockchain Technology?
Blockchain
is a type of distributed ledger. A distributed ledger is a database that
records transaction information, which is shared and synchronized between
multiple computers, without the need for centralized control. All parties have
the same record. If there is any new content, all records will be automatically
updated in real-time.
Why is Blockchain Important?
Blockchain
plays an important role in ensuring safety and security. The decentralization
feature makes the blockchain provide better security than other systems.
New blocks
are always added to the end of the chain. Each time a new block is added, a
corresponding digital signature or hash value is generated, which is a series
of numbers and letters. After adding a block to the blockchain, if you change a
certain amount or number in this block, these signatures will also change.
If a hacker
wants to tamper with the data of a block in the blockchain, he must make
corresponding changes to all the information before and after the block. And
this is almost impossible.
Blockchain
technology can also eliminate the intermediary links, help companies save
money, and get more benefits from it.
With the
help of blockchain, companies can more directly verify and execute secure
transactions.
In theory,
transactions can be completed without lawyers, bankers, brokers and other
intermediaries, and in a more interactive way, because anyone in the chain can
make changes to the data and then View and verify changes by other
participants.
What are the Uses of Blockchain?
Blockchain
technology is unique. No one can tamper with the technology. It has certain
settlement capabilities, data storage/and some technology calls. I believe
everyone should know what is the use of blockchain!
The birth of
blockchain is mainly financial, especially the formation of blockchain
projects, which has promoted the development of today's society and narrowed
the gap between rich and poor through investment in blockchain projects.
The
financial value of blockchain is an investment. Through the blockchain project,
everyone is an investor, and everyone has the right to invest.
Everyone can
get a higher income with their own ability, which is the financial value of
blockchain.
The
emergence of blockchain has promoted the development of digital currency, and
at the same time has accelerated the development of the network.
Blockchain
is basically a digital currency, and this digital currency is very safe.
The Future of Blockchain Technology
Blockchain
has the potential to transform nearly every industry in the world. It may
help boost global gross domestic product (GDP) over the next decade.
A company
can significantly reduce transaction costs and use a licensed network to create
an efficient system.
Blockchain
technology can create a more efficient and prosperous world where people can
communicate with each other without the need for intermediaries.
Blockchain
as a service (BaaS) is one of the promising blockchain trends that has been
integrated with several startups and companies.
BaaS is a
cloud-based service that enables users to build their own digital products
using blockchain technology.
Blockchain
technology has gone from the 1.0 era to the 2.0 era and is now moving towards
the 3.0 era.
Blockchain
1.0 era: The blockchain 1.0 era is mainly about the digital currency era.
Bitcoin is a typical representative, mainly simply recording transaction
information, with very single functions and limited application
scenarios.
Blockchain 2.0 era: The era of blockchain 2.0 is about the use of smart contracts. The Ethereum project is a typical representative. Unlike Bitcoin, which has a single function, Ethereum has added a "smart contract" function, which can be simply understood as a program that can be executed automatically. So, the blockchain has been upgraded from a single-function ledger to a world computer, and people can develop various blockchain applications on it.
Blockchain 3.0
era: Just like the 5G era. Blockchain 3.0 is an advanced version of Blockchain 2.0 that aims to address scalability, sustainability, cost, interoperability,
and security-related dilemmas.
Only after
it really comes can people know what it looks like and what new business models
and social impacts it will have.
Here, we
will talk about blockchain empowering social development, mainly based on
blockchain 2.0. So, in what ways will the blockchain enable social
development?
The first is
the financial industry. The financial industry has to deal with various accounts
every day. The blockchain is essentially a distributed ledger. With blockchain
technology, accounting, reporting, clearing, tax declaration, etc. require
multi-party information synchronization. The work of using blockchain
technology has obvious advantages.
In addition,
cross-border payment is also a major application of blockchain in the financial
field. Utilizing the advantages of openness, transparency, non-tampering, etc,
various cumbersome procedures between different banks can be reduced and the
process can be speeded up.
Blockchain
technology is also promising in business. Blockchain can be used to create an
anti-counterfeiting traceability platform, recording important data on every
link of goods from raw material procurement to after-sales, and jointly
cracking down with regulatory authorities, third-party agencies, and fake brand
owners.
Using the
traceability and non-tampering features of blockchain technology to achieve
permanent traceability, you can prevent false information, and protect the
rights and interests of consumers.
For many
people who pay attention to privacy protection, blockchain technology is a
great boon.
The various
usage data that we leave on the Internet daily, including sensitive information
such as identity, mobile phone number, hobbies, shopping records, location,
etc., may be directly or indirectly leaked out, bringing great impact to our
lives.
Blockchain
technology integrates cryptography and encryption technology, can realize the
separation of user identity and data, encrypted storage and distributed storage
so that your data is completely in your own hands.
The current
blockchain technology is still in the early stages of development. There are
very few successful large-scale applications, and it is also full of Capital
speculation and hype.
For this
emerging technology, we cannot overestimate its short-term impact, nor can we
ignore the long-term changes it brings.
As
technology continues to evolve, so use cases are constantly changing. The
number of vertical markets using blockchain continues to increase.
It is
estimated that by 2022, at least one innovative company built on blockchain
technology will be worth $10 billion.
By 2026, the
commercial value added by blockchain will grow to just over $ 360 billion, and
by 2030 it will grow to over $ 3.1 trillion.
The role of
blockchain is far beyond our imagination. In the future, the development of
blockchain will accelerate, which will maximize the usefulness of blockchain,
and the power of network technology will maximize the role of blockchain.
The biggest role of the blockchain is to promote the development of virtual digital currencies on the network and to make the development of the blockchain more secure through special processing encryption technology.