It\u2019s important to understand that though some people often use Bitcoin<\/strong> and blockchain<\/strong> interchangeably, in reality, they\u2019re absolutely different. Put simply, Bitcoin<\/span><\/strong><\/em><\/a> is a form of virtual currency and blockchain<\/strong><\/em><\/a> is the underlying technology that makes it possible<\/span>. If you\u2019re interested in purchasing any cryptocurrency including Bitcoin<\/strong>, it\u2019s important to have a good understanding of blockchain<\/strong> technology, why it\u2019s being widely used, and what lies ahead in the future of it.<\/p>\n Put<\/em> simply, blockchain<\/strong> refers to a virtual, public ledger that records everything in a transparent and secure manner.<\/span> Here, all the data is held in an interconnected network of computers that\u2019s owned and run by only the users themselves.<\/p>\n Although the technology was initially developed to work only in the financial arena, it has already started taking over other industries through its huge potential and slowly becoming an absolute game changer. According to some experts, blockchain<\/strong> technology is much more promising than the cryptocurrencies it was designed to support. With its implementation, more valuable usage opportunities are coming into existence almost regularly.<\/p>\n Here\u2019re<\/em> the major pros of blockchain<\/strong> for which the technology is being widely adopted across industries.<\/p>\n World\u2019s<\/em> largest corporations use centralized data systems as well as servers. Even though these corporations implement and maintain best network practices, their data systems and servers act as attractive targets for hackers and the operations may get affected.<\/p>\n Decentralization offered by blockchain<\/strong> prevents this problem and this is why this technology is being adopted by several industries. Here, every node on the network holds the same data as the others. Thus, in the event of any node breaking down, it won\u2019t affect the entire network.<\/p>\n One<\/em> of the biggest pros of blockchain<\/strong> is that the technology is open source in nature. It means developers and other users have the ability to modify it as they deem fit. But what\u2019s more important about blockchain<\/strong> being open source is that it makes modifying logged data incredibly difficult.<\/span> At any given point of time, since there\u2019re numerous eyes on the network, someone is most likely to see that the logged data has been modified.<\/p>\n As<\/em> we\u2019ve discussed earlier that no single actor can manipulate the blockchain network<\/a><\/em><\/strong>, it helps to take security to the next level. Here, whatever is performed on one node has to be replicated as well as agreed by other nodes before the action becomes active. This means a single actor like an employee\u2019s hacked computer or a compromised employee cannot take the entire blockchain<\/strong> network down.<\/p>\n Reduced<\/em> transaction cost is one of the other biggest pros of blockchain<\/strong>. The technology allows business-to-business and peer-to-peer transactions to be completed without any involvement of a third-party like a bank.<\/span> This elimination of the involvement of middleman leads to reduced cost for the businesses or users over time.<\/p>\n <\/p>\n It\u2019s<\/em> widely known that transactions take days to settle completely when it comes to traditional banks. This delay mainly happens due to protocols in software, fixed business hours, and the difference in time zones, among others. On the other hand, blockchain technology<\/em><\/a> <\/strong>works round the clock, which means transaction processes based on it are completed relatively more quickly.<\/span><\/p>\n When<\/em> working with regular databases, it\u2019s quite difficult to check historical transactions. In blockchain<\/strong><\/em><\/a>, all historical and current transactions are recorded securely in one place. So, if you want, you can go back to check the first blocks to learn where it all started. Here, every single block of information is contained, from the very beginning of it until just a couple of minutes ago.<\/p>\n The<\/em> reason why blockchain<\/strong> is particularly encouraged by cryptocurrency investors is its control aspect. Here, users and developers control all their transactions and information instead of having a third-party perform it. In other words, you can consider blockchain<\/strong> to be something that\u2019s by the people and for the people.<\/p>\n So, you can see that blockchain<\/strong> technology offers a spectrum of revolutionary benefits. Altogether, they offer the most profound quality of this technology \u2013 it doesn\u2019t require trust to interact and transact safely. With the help of blockchain<\/strong> technology, traditional systems can be transformed into dynamic systems where trust doesn\u2019t matter as it\u2019s no longer required.<\/span> This facilitates establishing ownership of anything unquestionably, without the requirement of a central authority.<\/p>\n Blockchain<\/strong><\/em> technology is being steadily adopted by some specific industries to enjoy the above benefits. Let\u2019s have a look at them.<\/p>\n If<\/em> an irregularity is observed somewhere along the chain, a blockchain<\/strong>-enabled system can lead the user to its point of origin. This makes it much easier for users to carry out investigations and execute necessary actions. You can consider the food sector, for example, where tracking origination, batch information etc is crucial in order to maintain quality and safety.<\/p>\n In<\/em> this industry, blockchain<\/strong> offers the advantages of cost-effectiveness and traceability.<\/span> For example, businesses can use a blockchain<\/strong> to track the origin of goods, their movement, and quantity, among others. This brings an enhanced level of transparency while simplifying processes like production process assurance, ownership transfer, payments etc.<\/p>\n Blockchain<\/strong><\/em> technology can be used by accountants to record transactions, minimize human error, and increase accuracy. Blockchain-based accounting systems<\/em><\/strong><\/a> are also able to protect sensitive data from fraudulent or illegal manipulations.<\/p>\n Here, an accounting change needs to be verified by the network of nodes. Put simply, accounting heavily encircles audit trails and blockchain<\/strong> helps to develop a secure audit trail.<\/p>\n This<\/em> is one of the most prominent industries that can benefit from the implementation of blockchain<\/strong> technology. There\u2019re some services that can effectively transfer money across the globe. Some of the major issues with them are high fees, slow operation, absence in some countries etc. When it comes to blockchain<\/strong>-based currencies, the fees are significantly lower. In addition, a blockchain<\/strong>-based payment network also boosts of speed and security.<\/span><\/p>\n There\u2019re lots of other industries that rely on blockchain<\/strong> to a great extent. However, there\u2019s one thing facilitated by this technology that can benefit every type of business. You\u2019re probably aware that time-consuming contractual transactions can lower the growth of any business, especially for organizations that process a huge amount of communication consistently. With smart contracts, agreements can be validated, signed, and enforced automatically through a blockchain<\/strong> construct, thus helping the business save both time and money.<\/p>\n Blockchain<\/strong><\/em> technology comes with immense power to impact almost every industry.<\/span> Based on recent developments in the field, here\u2019s what the future of blockchain<\/strong> would look like.<\/p>\n Just<\/em> like other platforms help organizations to manage operations, we can expect to see the growth of new platforms with decent features for implementing a blockchain<\/strong> network for businesses. Blockchain<\/strong> as a service or Baas<\/strong><\/em><\/a> is a cloud-based service that can be leveraged by companies without the need for setup and infrastructure.<\/p>\n A<\/em> hybrid blockchain<\/strong> is the combination of both private and public blockchain<\/strong>. The major advantage of a hybrid blockchain<\/strong> is that specific parts of the network can be kept private, and specific parts public.<\/span> This would be faster and cheaper than a public blockchain<\/strong>, while allowing access to the blockchain<\/strong> advantages of the same.<\/p>\n With<\/em> features like decentralization, immutability etc, blockchain<\/strong> can take care of two major challenges of working with big data \u2013 authenticity and restricted access to maintain quality of data and control. Data security and privacy are unquestionably two major concerns to businesses. Centralized data is insecure to a good extent. But with blockchain<\/strong>, data can be managed by the users generating the data, thus leading to more data security and privacy.<\/p>\n In addition, data generated through blockchain<\/strong> needs less scrutiny as the probability of manipulating such data is extremely low. It combines cryptography and hashing to develop data stored in a series of blocks that\u2019s almost immutable. So, blockchain<\/strong><\/em><\/a> with big data is expected to become a powerful tool for both small and big businesses, redefining the way data is being handled.<\/p>\n As<\/em> with any technology, blockchain<\/strong> also comes with some disadvantages like complexity, lack of adequate resources, and the probability of human errors, among others. However, considering the fact that blockchain<\/strong> ticks all the right boxes of becoming the technology of the future, there\u2019re lots of reasons to learn it and if possible, get certified in it.<\/p>\n Though the technology is still confined to a limited number of industries, there\u2019re lots of possibilities for it to expand its reach to various other domains soon enough. Though it may take a couple more years, blockchain<\/strong> is certainly going to change the tech domain once again.<\/p>\n1- What is blockchain?<\/em><\/strong><\/h3>\n
![\"What](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/What-is-blockchain-300x169.jpg\")
<\/p>\n2- Major advantages of using blockchain<\/em><\/strong><\/h3>\n
![\"Major](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Major-advantages-of-using-blockchain-300x225.jpg\")
<\/p>\n2.1- Decentralization<\/em><\/h4>\n
![\"Decentralization](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Decentralization-data-science-300x200.jpg\")
<\/p>\n2.2- Transparency<\/em><\/h4>\n
![\"Transparency](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Transparency-data-science-300x224.jpg\")
<\/p>\n2.3- Security<\/em><\/h4>\n
![\"Security](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Security-data-science-300x200.jpg\")
<\/p>\n2.4- Cost-effective<\/em><\/h4>\n
![\"Cost-effective](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Cost-effective-data-science-300x200.jpg\")
<\/p>\n2.5- Quick transaction settlements<\/em><\/h4>\n
![\"Quick](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Quick-transaction-settlements-blockchain-1-300x203.jpg\")
<\/p>\n2.6- Ability to keep both current and historical records<\/em><\/h4>\n
![\"Ability](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Ability-to-keep-both-current-and-historical-records-blockchain-300x184.jpg\")
<\/p>\n2.7- User control<\/em><\/h4>\n
![\"user](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/user-control-blockchain-300x200.jpg\")
<\/p>\n3- Industries that widely use blockchain technology<\/em><\/strong><\/h3>\n
![\"Industries](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Industries-that-widely-use-blockchain-technology-300x180.jpg\")
<\/p>\n3.1- Quality assurance<\/em><\/h4>\n
![\"Quality](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Quality-assurance-blockchain-201x300.jpg\")
<\/p>\n3.2- Supply chain management<\/em><\/h4>\n
![\"Supply](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Supply-chain-management-blockchain-300x150.jpg\")
<\/p>\n3.3- Accounting<\/em><\/h4>\n
![\"Accounting](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Accounting-blockchain-300x177.jpg\")
<\/p>\n3.4- Global\u00a0 payments<\/em><\/h4>\n
![\"Global](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Global-payments-blockchain-300x200.jpg\")
<\/p>\n4- Future of blockchain<\/em><\/strong><\/h3>\n
![\"Future](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Future-of-blockchain-300x169.png\")
<\/p>\n4.1- Blockchain<\/em><\/strong> as a service<\/em><\/h4>\n
![\"Blockchain](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Blockchain-as-a-service-300x180.jpg\")
<\/p>\n4.2- Hybrid blockchain<\/strong><\/em><\/h4>\n
![\"Hybrid](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Hybrid-blockchain-300x225.png\")
<\/p>\n4.3- Implementation of blockchain<\/strong> in big data<\/em><\/h4>\n
![\"Implementation](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/Implementation-of-blockchain-in-big-data-300x150.jpg\")
<\/p>\nFinal takeaway<\/em><\/strong><\/h3>\n
![\"final](\"https:\/\/academy.magnimindacademy.com\/wp-content\/uploads\/2019\/04\/final-blockchain-300x225.jpg\")
<\/p>\n