Another wave of disruptive innovation of transaction technology called Blockchain has hit. I chose this topic to share an awareness of how this technology will help to improve our lives to have a trusted information and make a secure transaction. It is created by an anonymous person or group named Satoshi Nakamoto in 2008 (Kaushal & Tyle, 2015). Blockchain is a secure transaction ledger database that is shared among all users or parties that have access to the established and distributed network of computer. This system implements a new digital currency, cryptocurrency including Bitcoin as a way of payment. This currency can eliminate the loss of exchange rate as its value is globally recognized. So, why Blockchain is the future of transaction?
- Build trust in the data
- No intermediaries
- Decentralized network
Every data or transaction that is created will be recorded and stored in the database of Blockchain network with a unique encrypted code, known as a block. When the algorithm runs the code and confirms the value of the data, the block will be added to the chain, which is basically a list of all historical activities on the ledger in a chronological order. The block cannot be deleted once it is made. Another block has to create to overwrite the block that the users wants to make changes. Therefore, the credibility of the information in each block can be trusted as nobody can delete the trace of transaction as the block is stored forever on the network. By building trusted data, blockchain eliminates the intermediaries that before are used to be a centralized entity verify the information or the document between the two parties. It helps cutting cost of the middlemen as well as improving the speed of the transaction. Blockchain was designed to distribute across a wide range of network of computers and no centralized authorities to control, which is impossible to alter or hack the data.
Blockchain technology is not a single network. It divides into 3 type of blockchains. It can be a public blockchain, where everyone views and access the information. Or, a private blockchain where it only be shared among selected group within the organization. Last, a hybrid public-private blockchain where the public can only see a selected information and those who private access can see all the data. Because of its security and decentralized platform, blockchain technology can served a lot of purposes throughout various industries.
The banking industry is the first mover to use Blockchain. In May 2019, Barclays bank has invested in Crowdz, a B2B blockchain-based startup. It speeds up the process of settlement, payment collection, automation of digital invoices, and their other back-office functions, which could save $20 billion in costs per year (Fuloria & Bang, 2019).
Blockchain also helps revolutionize the digital messaging to improve security building a communication infrastructure that is uniform across platforms. While the current platforms have different protocols that could weaken the security. SuchApp, a messaging platform that allows people to interact, cooperate and do business transaction within the app using blockchain to create ‘5G ecosphere’.
Blockchain can be a secure platform to put up documents and verified its credentials. Documents that related to real estate like owner of the property or academic qualification for education background can put up and verified in a real-time process. Therefore, people can look up the information in the blockchain and trust information that is given without a verification from a central authority.
List of Reference:
Fuloria, S., & Bang, N. (2019, November 6). Blockchain applications: Bringing in the next wave of new technology jobs. Retrieved from Business Today: https://www.businesstoday.in/opinion/columns/blockchain-applications-next-wave-of-new-technology-jobs-forget-analytics/story/388743.html
Kaushal, M., & Tyle, S. (2015, January 13). The Blockchain: What it is and why it matters. Retrieved from Brookings: https://www.brookings.edu/blog/techtank/2015/01/13/the-blockchain-what-it-is-and-why-it-matters/
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