Blockchain technology enables users to carry out online transactions across a peer-to-peer network. This network is decentralized and is not controlled by anyone. In its simplest form, blockchain based transactions work in the following way.
User A initiates a transaction and sends it to a public blockchain ledger. The transaction is verified and authenticated and added as a block of data onto the ledger. It is then sent on in the chain to the recipient. This process usually takes little time to complete, and at every stage the data is encrypted.
There are several main points to consider with blockchain technology. Firstly, as there is no middleman or centralized control, there are low transactions fees and transaction times are much quicker.
Secondly, as the transaction data is added to a public ledger, there is a permanent record and anyone can view the data. This means the transaction cannot be corrupted or refuted. Thirdly, blockchain based transactions are specifically encrypted, giving them a higher level of security than most of the standard online transactions. These points all combined together help to show why many businesses are now considering the use of the blockchain technology.
As you will see in the infographic from https://bitfortune.net many businesses have already started experimenting with this technology, and some are already using it as part of their operations. The banking industry, for example, can use the blockchain technology to replace traditional online transactions and reduce their overheads and costs.
Alternatively, in the insurance industry, companies are using it to provide tracking info for stolen goods and to provide a non-refutable form of security measure. Finally, even governments are using this technology. Sierra Leone used a type of a blockchain verified voting system during its 2018 elections. Such voting system could not be tampered with, and the results couldn’t be rigged.
For more interesting facts and figures relating to the blockchain technology, read on in the infographic below!