The hype of applications and uses of Blockchain Technology has spread vastly at a global scale. There are some major uses in using a blockchain. Every year, organizations are spending more and more money to research on blockchain technology. These experiments are varying according to the requirements and applications within the organization.
Uses of Blockchain Technology
There are new tools to authorize and authenticate transactions, available through the blockchain technology. This eliminates the need for central administrators controlling the cyber world. These tools help build new associations among unknown parties.
The process to secure and formalize digital associations is the backbone for conducting transactions through the blockchain. This process is known as the ‘Internet of Value’. This differs from ‘Internet of Information’ which contain client-server, login accounts and master databases.
This new transactional layer will not fulfill requirements of all users. There are places where using the Internet of Information is more suitable. The below flowchart will help individuals or organizations figure out whether blockchain technology caters their requirements.
Are the data records dynamic with chronological audit?
Documents in paper are had to counterfeit. The signatures and seals in such documents need a high level of skill to copy or duplicate.
The downside of paper is the inability to change the information. If the records in paper go through frequent changes, the details need to be added separately and cannot alter the existing details. This limits the ease of entering of data records manually.
Blockchains on the other hand help users to add new information easily to track the transactional records continuously. New parties can write in entries and concurrently edit information read by multiple users.
Is there any central authority governing the data?
People rely on third-party involvement to control bonds between associations. They seek assurance speed to keep track of authentications and authorizations.
Currently, accounts and login access maintain the security of a system. However, the Blockchain provides an additional layer of security on IT infrastructure of digital identification for financial transactions.
Satoshi Nakamoto, creator of Bitcoin depicts in his work;
Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable.
Blockchain is the solution to handle lightweight transactions without spending a lot of money for security. Private key cryptography allows push financials transactions on the Blockchain without the need of central authority.
What is the importance level on the speed of transactions?
The speed of transactions is another factor to take into consideration. Some organizations require high-performance transactions within their systems. If this is the case, the conventional database systems with central authorization is the way to go.
The Blockchain acting as databases require some processing power, known as Mining. This takes a considerable amount of time, to mine every block in the blockchain.
There are many uses of Blockchain technology. This is why many individuals and organizations invest and research on Blockchains. Blockchain tracking, and maintaining the system of records is doing a good job to help manage and secure the digital associations.