Blockchain technology, also popularly known as Technology of Trust, has been adopted by many large industries because of its numerous advantages. Currently, blockchain is being implemented aggressively by the financial organizations as it can help in reducing infrastructural expenses and eliminates the need for third party involvement. It offers a secure online platform for online transactions using cryptography. Blockchain has also proved beneficial in other sectors too, for example, blockchain and IoT together can help in coordinating with various devices in the telecom and technology industry. Also, third-party fees are eliminated because of Blockchain features and hence reducing the overall cost.
Blockchain offers a new method in which the information can be shared. Everyone in technology world including financial services, healthcare, mobile wallets or international delivery are realising the potential of Distributed Ledger Technology (DLT) or Blockchain technology.
What is Blockchain Technology?
Blockchain technology enables people to access global data and verify proprietorship of the international records. The blockchain is an automatic public ledger or electronic database of global transactions. It generates an irreversible record of new entry linked to the preceding transaction along with time stamp.
Each entry is referred as Block as the name suggests and all these blocks form a chain. Blockchain allows an open or controlled group of participants to access the electronic ledger and each block links with a single participant. The data updated in blockchain can never be removed and can only be updated with the approval of all participants. The blockchain comprises of all the data related to the transactions ever made in the system. Hence, Blockchain technology is reliable and error-free.
In Public blockchain, every transaction must be approved by each member of the network. Therefore, it is fundamentally dependable and safe. It removes the dependability of any regulatory body or a third-party organization to oversee the communication. A single member of the network can not authorize or change the data of a transaction. In public blockchain network, every member has equal rights to modify the details after a defined approval process.
Private Blockchain is another type of blockchain. It is like public blockchain as it is also distributed, secure and transparent however it only allows a designated group of people to modify transactions.
The third type is new and is called hybrid blockchain. It is a ground-breaking concept in blockchain technology which has combined features of public and private blockchains. In hybrid blockchain network, an organization can decide which information to be kept private and what data can be made be available for public access.
Future of Blockchain Market
Polaris Market Research’s new report published on the blockchain technology market suggests that blockchain market is projected to reach USD 16.82 billion by 2026. North America and Europe are implementing this technology at a faster pace than other countries. However, the Asia Pacific and China regions are not very far behind and already started generating practical and real-time projects based on blockchain technology.
Blockchain technology supports IoT applications in technology and telecom industries including enhanced payment solutions. The healthcare industry is also approving this technology as it can secure their sensitive data. Asia Pacific market is estimated to rise further due to its evolving financial infrastructure. It paves the way for growth in demand for safe and economical online transactions. Industries like shipping, fintech, healthcare and energy are widely implementing Blockchain technology.