While there are many new and life changing technologies under development today, few have the potential of blockchain. A revolutionary storage method that makes outside tampering virtually impossible, blockchain technology enables a wide variety of activities that were either impossible or impractical before. By paying attention to how this method is further developed and applied, you can get an early sense of changes that will radically redefine the way we communicate, learn, and do business.
Breaking Down Blockchain
Blockchain technology is a digital storage method in which individual pieces of information are linked to one another. The resulting collection of data then resembles a long chain, and is nearly impossible to be altered or stolen without being detected. This allows anyone using the blockchain to be confident that their data is secure.
The Many Applications of Blockchain Methods
By offering a superior level of data security and reliability, blockchain technology enables a variety of activities and assets, including:
• Viable Cryptocurrencies- Digital currency can only succeed if it is issued in predictable quantities and according to consistent schedules. The blockchain is the most reliable way to make sure that this happens. For this reason, any platform that uses blockchain technology can issue their own virtual coins, with the promise that they will never devalue these assets by overproducing them. This in turn makes cryptocurrency sales a viable form of investment, as investors can buy them with the same confidence as they would purchase stocks or bonds.
• Smart Contracts- The blockchain can store contracts with comprehensive information about how their terms are to be executed. These contracts then enforce themselves based on information they gather over time, without any input from the parties that sign them. This lets businesses and individuals enter into agreements without worrying that they will be enforced in a biased way. This is particularly valuable for industries like virtual goods production, where contracts between content creators and brands have been notoriously hard to enforce.
• Quality Records- Digital transactions require clear, accurate, retrievable records of participants’ assets, as well as how they choose to transfer those assets. Blockchain technology is the best bet for creating and protecting those records. Not only are blockchains resistant to outside tampering and theft, but because they are decentralized, they can be accessed quickly from a wide variety of locations. This makes it easier to trade cryptocurrencies, virtual goods, and a host of other products on a global scale.
As blockchain technology is adopted on a larger scale, it will open the door to a myriad of other activities that create value for individuals and businesses. For example, by creating viable cryptocurrencies, the blockchain gives companies greater flexibility in how they attract investments. Likewise, by making it easier to produce virtual goods and other products in high demand, this technology offers more options for consumers and an easier path to solvency for businesses. These and other advantages have the potential to create wealth and opportunity all over the world.