When it comes to blockchain technology, there are two sides to it. On one side, it’s one of the most talked about in the IT section, but on the other, many individuals and businesses still don’t know what they can benefit from it.
Blockchain is often known as one of the most groundbreaking technologies of this age, and so business owners and individuals can expect it to affect their business and life in one way as time goes on. Only those that can understand what blockchain has to offer and how to take advantage of it, can adapt to the changes that this technology will bring in.
Blockchain technology does not only make things easier for a business in the information technology industry but will also make things safer, faster and more advanced.
Fundamentals of Blockchain
Before diving into the topic further, it’s important to understand what blockchain technology is. The reason why it becomes to the IT industry is that it’s a system of recording information on a platform/ledger that cannot be tweaked, adjusted, corrected, hacked or cheated.
Blockchain consists of a series of unchangeable records of data, all time-stamped, and is not owned by a single entity. In simpler words, it’s as the name implies – a chain of blocks. Each block contains data and they are all combined using cryptography.
Blockchain technology will record all the transactions in a peer-to-peer network and store them in distributed databases. Every transaction you make with blockchain comes its digital signature. This signature will be recognized by the entire network and free from being tampered with, revision and deletion.
Blockchain involves an automated and secure method when passing information from one point to another. The sender will trigger the process and make a block. The block will be verified by computers around the world, and then the block is added to the chain. If you try to change one single record on the Blockchain, you will have to send the entire global network.
Blockchain enhances trusts between businesses working together because of its transparency and protection. It can be found in a wide range of industries, with banking, finances and cryptocurrency taking the lead.
Why Blockchain is the New Frontier in IT
What makes blockchain so special in the IT industry is its many benefits and the way it can change the entire system of a company. Blockchain is mostly known as a disruptive technology because it brings about a wide range of changes.
One of the main reasons is that blockchain does not have a single authority. Rather than a central body controlling it, it has a decentralized structure. The ledger is distributed and unchangeable, which means anyone that comes across it can see it. The owner can rest assured that the information on the ledger is immutable. Blockchain allows everyone involved to be accountable and allows the transparent sharing of information.
Blockchain comes with no transaction costs, although it might have infrastructure costs. Without spending on transaction costs, businesses can save money. For instance, if you want to convert Bitcoin to Naira, you don’t have to worry about the transaction fees.
Blockchain and Cryptocurrency
The main application of blockchain that the common man and businesses is cryptocurrency. This uses blockchain technology and has risen in popularity over the years. While cryptocurrency is a medium of exchange, like fiat money, blockchain is what enables cryptocurrencies.
Cryptocurrency is a digital currency that uses different encryptions to verify transfers and control the monetary units.
If you’re not a business owner but you’re wondering the best way to use blockchain, it’s cryptocurrency. It can be seen as the new frontier in the financial world for the common man. Rather than racking your brain with how to incorporate blockchain in what you’re doing, it’s best to buy, invest or hold cryptocurrencies.
Most cryptocurrency exchange platforms like Vertex Markets offer similar processes, so if you’re wondering how to buy Ethereum in Nigeria or other types of cryptocurrencies, you simply have to follow the rules and invest in them.
But, if you’re a business owner, there’s a lot that blockchain means for you.
What it Means for IT Businesses
All companies have to start preparing themselves for what blockchain technology has to offer. It is more than just the technology behind cryptocurrencies like Ethereum and Bitcoin but has boundless potential in many other industries, especially IT.
All information technology businesses are based on trust, transparency, security, and efficiency, and with blockchain, all of these can be achieved. Blockchain has the potential to be used in various aspects of keeping, sharing, and saving information. It can be used in setting up massive collaborations, managing complicated supply chains, improving customer services, and more.
Although blockchain isn’t quite there yet, it’s evolving as fast as it promised. For better results in the future, businesses have to know the wide range of opportunities that blockchain technology offers and how to get the best of them.
For one, IT businesses that use blockchain can gain a reputation for transparent dealings. Since none of the information recorded on blockchain can be altered, businesses can easily engage in transactions with other businesses, vendors or customers, and use this technology to record it. The ledger will be open to everyone so no one can cheat or inflate prices. Thus, blockchain technology encourages transparency.
It also builds trust. For businesses where the transactions are being recorded in the blockchain, all parties involved in a deal or transaction can see the information. This means that no one has a reason to distrust the other, and this leads to trust during the business.
Blockchain technology is well-known for its impressive safety, security and speed. The technology cannot be hacked when implemented in any type of business, which means that all information is safe. Even if an unauthorized person came across the ledger, they cannot change what is written in it. The technology also makes passing information quicker and easier.
Blockchain is the Future
There’s no doubt that blockchain has established itself as the future of information technology. The technology offers a wide range of benefits and features that help it live up to its name as a new frontier.
Interesting related article: “What are Blocks?“