Why Blockchain Technology and What it Means

Many people might be learning about blockchain technology and not understanding how transformative it is. The whole subject might be super boring, although sometimes, the most boring information can transform the world, such as the integrated circuit (IC's).

Imagine describing the integrated circuit technology to somebody in the early 1970s - how it will change the entire world population. Blockchain technology is, to a certain extent, something like that. The technology is a way of saving data and assigning a value that does not require a third party commitment.

We don’t need central banks, regulators; we don’t need anyone to stand in the middle of the contract, trade, or financial transfer. Throughout human history and human dealings, we always obliged to a middleman.

For example, let’s say you are in the Asia region, and I’m in the British Virgin Islands. If you and I needed to manage the business together, we would have necessitated a bank to function as an intermediary source, to safeguard our interests. The advantage of blockchain technology is that it is designed; it does not demand trust to achieve the desired outcome.

The way the database is designed, it is incredibly hard to compromise. The coronavirus pandemic has fast-forwarded our appropriation of digital technology: digital currencies, buying goods online, more dependence on digital systems. As we progress further along into a digital society, we will need to decrease the system's friction.

So what do middlemen/brokers do? They receive a cut of everything that moves over financial systems. Hence they add costs and increase expenses. While we move further and further into a digital strategy, businesses will be taking measures to reduce costs. That is precisely what revolutionary technology does.

Current blockchain technology usage

I will give you an example of the blockchain technology – global financing. Nowadays, it takes about ten days or more to do a business or any business finance deal. It demands exchanging tonnes of paperwork back and forth via UPS. And all other diverse intermediaries have to become involved.

Take Barclays Bank, which is now using the technology to do its trade finance processes. It is taken its trade finance down from ten days to four hours means. It is truly remarkable. The banking enterprises think they can save over $20 Billion annually, bypassing all their trade dealings settlements to this technology.

Walmart uses blockchain technology as part of its food safety data; it can track where its many foods come from. Previously, it would have necessitated a week or more to track a particular item within its supply chain system. Presently, Walmart can perform it immediately - Just-In-Time. This is the dynamism and power of the blockchain system.

Like how the IC's progressively got used and radically changed the technology map of our planet we live on today, you can take each piece of forwarding momentum as we have seen in the world technologically – from the internet revolution to every electronic gadget in our homes, and return to the IC's.

In a nutshell, IC's was the starting point of technology that produced everything we are enjoying nowadays. On the other hand, blockchain technology is the place to commence the technology to create a whole new way into the future. And it will generate innovative applications of that technology we can not even imagine.

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