Wednesday, 18 October 2017

A Guide to Blockchain and its Applications



Blockchain technology is a revolutionary invention that, when it was first made public by its anonymous inventor, never indicated it would give birth to so many applications. The masses often seem to think blockchain is synonymous with bitcoins - this is not true. At Money Trade Coin, we’d like to inform you of the fundamentals, so you can fully appreciate its enormous potential impact on the way we bank.

Before we dive into its potential, let’s run through a quick lesson on what exactly it is.

Unlike regular cash, blockchain cannot just digitize your financial value, but anything of value, including pure information. Think of the whole blockchain market as a large Excel sheet of ‘blocks’ - numerical values that are available to all participants. The blockchain is essentially a public ledger, with the unique feature of being decentralized and requiring no intermediary (such as a bank) to explain and process the data (financial or otherwise) to the end customer, which is you. This gives the customer the ultimate power in transactional activities, as it results in lower processing fees, reduced processing time and anonymity, among other benefits.

How does it do this?

The blockchain is simply a set of blocks with values that denote transaction history and value. Each of these blocks has a numerical value which cannot be transformed or corrupted, as it encrypted. To add another block to the blockchain, users must ‘mine’ (this can be done through devoting computer resources) for the next block. The blockchain keeps track of every transaction ever conducted and this information is shared with all users on the blockchain network. It is this public distribution of information and incorruptibility that makes blockchain technology so valuable for businesses, voting and identity keeping. Every transaction and its value in the past is forever stored and retrievable on the blockchain.

Now that we have some understanding of how blockchain works, let’s look at how it can be used in the real world.

Cryptocurrency

Bitcoin, Litecoin, and Ethereum are just some of the currencies available. The benefits have been explained - it’s secure, decentralized and anonymous.

Digital Voting

With all the worry about election hacking that has been transpiring, the need for a secure form of voting has never been more essential. Some countries have already begun using it, knowing that increases voter turnout and secures voting data. By using blockchain in voting, a voter could guarantee that his or her vote has been registered, without needing it to be verified by another person (in the case of paper voting) or by a machine (electronic voting).

Digital Identities

A key aspect of identity - think passports, bank accounts, and PAN cards - is security. Everything that’s truly valuable about yourself i.e. your personal details, financial details and tax records require strong security. But current technology is far from foolproof in the matter. That’s where blockchain comes in. Anonymity and immutable data make blockchain immune to fraud and theft.

In a world where processes and information storage becomes increasingly dependent on technology, it is only advanced technology itself that can prevent misuse and harm.
 Money Trade Coin thinks it responsible to educate the public about something that will revolutionize our lives. As blockchain continues to grow, we can rest easy knowing that we have a solution available to the many of the world’s digital challenges.




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