What Is Blockchain?

Blockchain is simply a system that is used to record information electronically, in digital format, such that it is virtually almost impossible to hack or cheat the system.

Blockchain technology was first described by researchers Stuart Haber and W. Scott Stornetta in 1991. They proposed a system where document timestamps could not be tampered with. The potential of the technology remained dormant for till 2009, when the digital currency Bitcoin was launched.

A blockchain is a distributed, decentralized database that is shared among the nodes of a computer network. It can be used to immutably record an infinite number of data points. It guarantees the fidelity and security of data, without the need for a trusted third party.

The unique power of blockchain as a digital transaction ledger lies in the fact that the data is duplicated and distributed across the entire network of computer systems on the blockchain. Whenever a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The transactions on blockchain are recorded with an immutable cryptographic signature called a hash. This simply means that if one block in one chain was changed, it would be immediately apparent it had been tampered with. If hackers wanted to corrupt a blockchain system, they would have to change every block in the chain, across all of the distributed versions of the chain. This would be a virtually impossible feat.

Blockchains are continually growing as blocks are being added to the chain, which significantly adds to the security of the ledger. When a block is filled, it can never be edited, and becomes a part of this timeline. Each block in the chain is given an exact timestamp when it is added to the chain.

The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. In this way, blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed.

Benefits of Blockchain

Blockchain’s potential as a decentralized form of record-keeping is almost without limit. Some of the benefits are:

  • It improves accuracy by removing human involvement in verification.
  • It reduces costs by eliminating third-party verification
  • It decentralizes the record, making it virtually impossible to tamper with
  • It ensures secure, private, and efficient transactions.
  • It provides an unparalleled level of transparency to transactions.

 

Applications of Blockchain Technology

The launch of bitcoin marked the first concrete-real life application of the blockchain technology. In the years since, the use of blockchains has exploded via the creation of various cryptocurrencies, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts.Today, blockchain is living its full potential as a reliable way of storing data about all kinds of transactions.

Banking and Finance

Perhaps no industry stands to benefit from integrating blockchain into its business operations more than banking. Financial institutions only operate during business hours, five days a week. Blockchain, on the other hand, never sleeps.

By integrating blockchain into banks, consumers can see their transactions processed in as little as 10 minutes, basically the time it takes to add a block to the blockchain, regardless of holidays or the time of day or week. With blockchain, banks also have the opportunity to exchange funds between institutions more quickly and securely.

Currency

Blockchain forms the bedrock for cryptocurrencies like Bitcoin. The U.S. dollar is controlled by the Federal Reserve. Under this central authority system, a user’s data and currency are technically at the whim of their bank or government. If a user’s bank is hacked, the client’s private information is at risk. If the client’s bank collapses or they live in a country with an unstable government, the value of their currency may be at risk.

By spreading its operations across a network of computers, blockchain allows Bitcoin and other cryptocurrencies to operate without the need for a central authority. This not only reduces risk but also eliminates many of the processing and transaction fees. It can also give those in countries with unstable currencies or financial infrastructures a more stable currency with more applications and a wider network of individuals and institutions they can do business with, both domestically and internationally.

Healthcare

Health care providers can leverage blockchain to securely store their patients’ medical records. When a medical record is generated and signed, it can be written into the blockchain, which provides patients with the proof and confidence that the record cannot be changed. These personal health records could be encoded and stored on the blockchain with a private key, so that they are only accessible by certain individuals, thereby ensuring privacy.

Supply Chains

Suppliers can use blockchain to record the origins of materials that they have purchased. This would allow companies to verify the authenticity of their products, along with such common labels as “Organic,” “Local,” and “Fair Trade.”

The food industry is increasingly adopting blockchain to track the path and safety of food throughout the farm-to-user journey.

Voting

Voting with blockchain carries the potential to eliminate election fraud and boost voter turnout. Using blockchain makes votes nearly impossible to tamper with. The blockchain protocol would also maintain transparency in the electoral process, reducing the personnel needed to conduct an election and providing officials with nearly instant results. This would eliminate the need for recounts or any real concern that fraud might threaten the election.

What’s next?

As we prepare to head into the third decade of blockchain, it’s no longer a question of “if” all major companies will catch on to the technology—it’s a question of “when.” The future belongs to blockchain.

Quantopay functions as a global, digital blockchain bank. It is the world’s first global, revolutionary fintech app, giving users the freedom to spend, earn, save and transfer money through their smartphones securely. 

As a revolutionary blockchain organization that makes the storing and using of cryptocurrency safe and convenient, Quantopay will firmly integrate blockchain and cryptocurrency solutions in everyday life. 

QuantoPay is the first global Blockchain Bank that cares about healthy financial inclusion and education, which is aiming to stop the questionable methods of the traditional financial system and even some new players of the fintech industry. QuantoPay virtually gives back to its community, with fully transparent distribution of generated profits into sustainable, environmental projects.

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