Cryptocurrency and Blockchain Technology:
A blockchain is a dataset that maintains a growing list of ordered records called blocks. Each block is linked to the previous block,
this makes blockchains secure by design.
A blockchain is analyzed by software to for the extraction of relevant information. Thus, they can be used for efficient data keeping of medical records, online voting, identity management, transaction processing etc.
This concept was introduced by Satoshi Nakamoto for the very first time in 2008 and the very next year this anonymous individual or group used this technology to make the basis of the most famous and influential cryptocurrency Bitcoin.
This served as the basis for many other such virtual currencies. The blockchain technology made the system secure and also removed the requirement of a trusted administrator.
Blockchain stores the data across the network and in this way the risks involved in centralized data handling are eliminated. As there is no centralized point it is very difficult for hackers to exploit. The data that is stored on blockchain is considered as incorruptible. In this type of data handling, no user is given preference when it comes to trust as there is no central copy.
Blockchain technology has the potential of making a very large impact on the conventional business operating models. In the future, this can be the means of creating new foundations for economic and social systems globally. Although at the moment the use of this technology is limited and not relatively well known, blockchains can be used to make global supply chain and financial transactions more efficient.
Blockchains can be used to reduce the transaction costs and the need for a third party (banks) for any type of monetary transfer. Which makes it cheap and attracts both suppliers and customers alike. The financial institutions are exploring new ways of using the blockchain technology to revolutionize the conventional ways of banking. Business communities all over the world are viewing this as a next generation software that can be used to improve business processing.
In a report published by World Economic Forum in January 2017, it is predicted that 10% of total global GDP will be stored on blockchain or its related technology by 2025.