Blockchain technology & its future use
Blockckain future is here
Blockchain technology makes it impossible to cheat, enables trust between multiples parties because trust is often hard .
For example , old world processes like trading , there is a merchant to Newyork & he would like to buy sweaters from a manufacturer in china . For this , they get a letter of credit from a bank , probably 2 or 3 months before they’re going to trade . This process has not changed ever since Marco Polo went to China which was 700 years ago .
We take the letter & get sweaters and perhaps they are going to put them to the port and then they are going on to the ship . To reach the warehouse it again takes 30 – 60 days. Later the manufacturer gets the money .
If we are on Blockchain technology , each of those naturally would be a block on the blockchain . All the parties , ports , shippers , manufacturers , retailers can trust each other which is what this technology enabled. The friction in commerce shall be removed. The money can flow faster . Capital getting locked up is a past from then.
Blockchain is great for digital currency in capital markets , but it really extends beyond that. The central control of the currency in Blockchain is controlled by machines globally rather than central banks.
Miscellaneous uses :
Rather than having the machines govern the movement of money , we can govern them through the movement of stock or anything else that has the value . When we want to borrow stock from one entity & sell it on an effort to make it a profit , but it is not clear where the stock lies . ( stock markets )
If we have Blockchain , we can always know where each piece of stock lies at any given point of time . We don’t need to worry about credit requirements , collateral , etc. It enables automated flow of all these transactions & money depending on contracts getting executed by machines . This is process of automation & cloud computing .
Basically we don’t have choice other than trusting a single government organization or an agency or a bank . The recourse is through legal system or through a long audience process later . When we get to Blockchain , where multiple entities are getting together & enough of them agree on something , a process called as consensus , then everything out there is in the open . Once it is in the open , we cannot change the previous transaction . This enables the TRUST & TRANSPARENCY .
Things like corruption & all money laundering activites will decrease when these things are out in the open & enough people have to agree on it . This is the power of computer science behind Blockchain technology .
These are the reasons why block is revolutionary & everyone across the world is adopting Blockchain technology .
For more info , please refer https://blockchainlearningacademy.com/