In simplest of terms to understand blockchain, we will say that blockchain is the technology behind bitcoins. But it is far more important and favorable for the global economy than to what we are perceiving it to be.
Not only the layman but the giants of the world like Bill Gates and Richard Branson are also interested in technology. But what exactly is this blockchain?
Whenever we want to trade in currencies or want to save our money in some locker, we go for the dedicated place made for that purpose like in modern days banks work. But, banks are like the third party who is working as a middleman between the buyer and seller or in other words the consumer and supplier. Blockchain removes that hurdle by being a technology which doesn’t need a third party and it connects the consumer to the supplier directly, without the need of anyone else.
Blockchains in modern days are used for digital currencies and it is used as a “digital ledger” or in simple words a decentralized database where everyone on the network can see what the transactions are doing. This network is a collection of computers, who are in authority to approve or reject any transaction happening on it.
If we want to understand this technology in relation to bitcoin then, the best way to get it by imagining that you want to buy bitcoin and you went to the bitcoin exchange for that purpose. This technology will enable you to have that transaction in the encrypted form but only if the other people on the network regards it valid. If they give a go forward signal then you can have a valid transaction and bitcoin in your wallet. Why this technology is different from others is due to the fact that you don`t work under the authority and it being centralized are not prone to hackers as much as we assume it to be. This technology records every transaction and for this reason, no bitcoin can be traded more than one time. Which is a very vital and beneficial technology to abide by.
The reason big guns like bill gates and others are interested in this technology, due to it being so revolutionized that it can be used in any type of transaction we do on our daily bases. We can trade through it the currencies, the properties, the goods and another similar type of things. We can even enable it to collect taxes and one of the vital roles it can play by allowing immigrants to send money back to the family where other safe modes of transaction like banks or so are not present, or very hard procedure to abide by.
If people will understand this technology and will be ready to use it then, every person in the world who has access to it will use it for every transaction they require. By now, around $20 billion dollars of the world GDP which is around 0.025% is the proportion of money locked in blockchain according to the World Economic Forum. But the forum is optimistic that this will increase dramatically within the decades, as banks and other similar firms are considering it very beneficial in terms of the time it takes in the transaction and cut costs.
Silicon Valley, Microsoft, IBM, Bank of Canada and others are also investing and coming forward to adapt to this technology. A report from one financial tech has said that banks have put across $75millions in blockchain by now and more are in the Que.
This alone could tell all of you what this technology has offered by now and what it could do to the future of the economic world if we use it efficiently and in the right proportion. With the interest of big names in the world, this technology is expected to the only boom in the upward direction.
I am sure this will propose many of you to look into this technology or go deep in this and try to make a living out of it. This has made famous and rich to lots of people and I assure you if you will work accordingly then this could also happen to lots of you