Blockchain technology and its effect to the society

One of the emerging technology is called blockchain and it been in use since the launch of Bitcoin. Many institutions have been pessimistic about Bitcoin for the last decade but the currency has been around for some time. The first focus was on the currency and not the technology that drives it. The gains from the technology have overshadowed the technology behind bitcoin.  The bitcoin prices have continued to rise and the research on the technology behind it has been launched, all other currencies that use bitcoin have been launched (Mettler, 2016). The technology behind bitcoin is called a blockchain. Blockchain is a peer-to-peer distributed timestamp of transaction. The entire aim of cryptocurrency is to move away from the normal centralized banking systems like monetary policies. This helped in the movement away from the money and its centralization.  The idea is called flat money, it allows the user to maintain own copy of transactions kept by the central bank and the two copies are synchronized by the consensus algorithms.

Blockchain technology is hyped in both the private and public sectors. Technology will change many lives in today’s world and has been called the greatest innovation of the 21st century. In the private sector alone, companies have been exploring possibilities of the application of blockchain for a number of years, and according to various news outlets, there has been interest from the government and non-governmental organizations.  According to the creator Gartner, blockchain technology has passed the hyped cycle and has brought about the realism of innovative technology.

What Is Blockchain Technology, And How Can It Be Used In Organizations And Industries To Create Value?

The technology uses the decentralized and distributed database meaning that the storage devices where the ledger is stored are not linked to a single computer. Blockchain transactions have been growing over time in the form of blocks, and every block is time-stamped and linked to a previous block hence becoming part of the time-stamped blockchain. The users of blockchain are able to edit some sections of the blockchain that they own, for this to happen, there is a need to acquire both private and public keys, the key idea is that the technology is synchronized although not linked to a common processor.

An example of a linked computer could be a personal computer linked to a network where the master data is logged and edited. There is no synchronization required as there is a single master file that is stored centrally. Blockchain works with computers although they behave as if they are online, the accessed and edited master files are always synced and saved on a company central server. Any entry cannot be deleted and is available virtually forever.Blockchain technology has three key components;

Peer-to-peer networking: The computers are connected by a network, with no centralized server, there are no control elements that a company may have with the server, therefore each machine will make its information to be updated then shared within the network. Consensus Protocols: With any addition of a new block, every machine must have an agreement with other machines, the job is carried out by the consensus rules. The rules are predetermined by the applications that run by the nodes in the network. The consensus software ensures that computers are always within an agreement with each other.

How Blockchain improves daily lives?

The way blockchain is changing lives has just begun. A few years after its release and this might be the tip of the iceberg.  The effect of cryptocurrency has been felt in the financial sector and has rolled through ATMs and digital wallets.  It has also encroached on the loan payment schemes considering that it caters to people without bank accounts. Such as a shift is a positive one and is a life changer. The shift to cryptocurrency will be easier in developing countries when compared to the processing of fiat money or the use of credit cards. The encroachment of cryptocurrency is similar to the encroachment of cellular phones in third-world countries. The economists realized that it was easier to have large amounts of cell phones than have the new infrastructure for landline phones.

How Blockchain Overcoming Security Issues in Healthcare EHR?

Decentralizing money away from government control is likely to be embraced by many people and the social implication is therefore significant. When the cryptocurrency dealt with the cases of identity theft, handling of personal data became easier, and more personally-identifying information could be revealed with a lot of ease and trust (Nguyen & Dang, 2018, November).  Decentralization, therefore, gives underprivileged access to banking services, raising their profiles and handling of charities in developing countries that have manipulative governments or suffer rampant corruption. Cryptocurrency and blockchain, therefore, provided room for an increased level of trust especially when the trading partners know where the money goes. The other benefits include increased contribution and support for the needy for the other parts of the world that require aid, blockchain can build a financial services system that is based on trust.

The blockchain is also well placed to reduce vote-rigging and all other negative events associated with the voting process. There are countries that tend to control the voting process with the aim of pre-determining the outcome. There are cases where governments shut down voting centers with the aim of undermining true democracy. Voter rigging is not confined to the developing world alone. Even in the United States, there was an allegation of voter rigging by Russia through hacking of the voting system. When blockchain is applied to solve these problems, the voting processes will be more transparent and the new problems can be solved. There may be new problems that may come but the cycle goes on with old problems solved and new problems cropping up. For example, when a decent leger is used to provide data and record voters accurately, the same ledger should be applied to verify if the voting process has been manipulated. In this case, there would be no intimidation and voters can cast their votes at their homes.

Banks are Scared of Blockchain?

The banks are the institutions that are scared of blockchain. The industry has been able to save from 16bn a year to 20 been annually through the adoption of blockchain technology. The banks have gained from the shift in fundraising approaches as people try to stay away from the capital markets and Initial Public Offers to Initial Coin Offerings. If the blockchain could move further, there would be a move for the equity market known today.  This might not happen today but it will take some time to materialize. In the near future, cryptocurrencies could replace traditional shares, which means that banks would use the decentralized ledger to transfer shares between companies. In this case, there would be no financial intermediary and could kill the traditional brokerage.

The general outlook for the blockchain seems bright. Adopting technology beyond comprehension is the way to go. The world and the central banks have invested a lot of effort in integrating blockchain technology. The migration from physical money to virtual money is inevitable. The central government has placed fears on the rise of cryptocurrency, although Japan has embraced the currencies as legal tender, its market continues to grow, meaning that the blockchain technologies have a net negative effect on the central bank. Therefore, central banks need to upgrade and adopt new technology instead of living in fear of the unknown. Eventually, the money market will be out of the control of the central banks. There will be a need for an oversight committee that will be involved in mapping out the progressive framework that will ensure the inclusion of the blockchain in the mainstream financial system. This will mean that more jobs would be created and there will be greater value for the society.

What Are The Revolutionary Impact of Blockchain Technology in the Banking Sector?

Blockchain technology has had an impact in several areas including the energy sector, supply chains and governments, healthcare, and many other areas. In the supply chain, blockchain can be used to track food from the shelves. The technology has been applied by Nestle and Walmart. IN particular interest to the blockchain, a particular supplier can trace the source of food contamination or be able to give consumers a true source of manufactured goods.  In the energy sector, on the other hand, blockchain technology would allow consumers to sell their energy to neighbors, this will reduce control from the utility companies. On the other hand, the UK has employed blockchain in student loan disbursement and tracking the benefit payments to the underprivileged.  Governments are also using the technology for record-keeping, when combined with the ledger cloud, the record transfers such as title deeds will be done easily than when done otherwise.

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