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Blockchain is a hot topic globally right now. It, along with Bitcoin and cryptocurrencies, became the subject of discussion in many newspapers and in people’s conversations. However, when it comes to blockchain, there is still a lot of controversy. Some worry that Bitcoin may just be a bubble, many consider the technology behind it to be a breakthrough, and that technology will continue on its way until it is accepted and integrated with the Internet. .
So what are blockchain and cryptocurrency essentially? In what areas in life can it be applied and why is it so interesting? In this blog I will introduce basically about these two definitions.
WHAT IS BLOCKCHAIN ?
Blockchain is a technology like a public accounting book in which all information is stored and transmitted in a transparent, complete, and cannot be changed or cheated. This is a new technology that greatly improves the limitations of the traditional way of storing and exchanging information. For this reason, blockchain is increasingly being used in many fields: financial economics, education, agriculture, industry, entertainment, healthcare or education …
More technically, Blockchain is a distributed (decentralized) database in which the data is stored in the form of blocks. The body of a block carries transactions over data (like the state machine). Blocks are linked together in a linked list form in the form of SHA256 encryption. The encryption of a block includes the address of the previous block and its own body, in other words, each block contains information about the time of creation and is associated with the previous block, accompanied by a time code and transaction data. so when a block is added, it cannot be changed or reordered. Blockchain is designed to combat fraud and alteration of data.
WHAT IS CRYPTOCURRENCY ?
Cryptocurrency is an unregulated digital currency and is only available in digital form. It can only be stored and traded through designated desktop or software software, mobile apps, or through a dedicated digital wallet.
Transactions that happen on the internet are through dedicated and secure networks. Cryptocurrencies are considered a subset of the digital currency. Cryptocurrencies such as bitcoin and ethereum are considered part of the crypto currency group.
PRACTICAL APPLICATIONS OF BLOCKCHAIN TECHNOLOGY
1. Management contracts and smart contracts (Smart Contract)
Every industry is heavily dependent on contract. Financial institutions, insurance, real estate, construction, entertainment and law, will all be able to leverage blockchain technology for updating, management, tracking and security. contracts.
Smart contracts are digital contracts written in code on the blockchain platform and used to exchange virtual assets, services, stocks … in a transparent, clear manner without the need for any intermediaries involved. With this encryption method, traditional legal documents can be replaced by the application of blockchain technology. A concrete example can be seen is that the majority of ICO tokens currently issued are thanks to the use of “Smart Contracts”.
2. Financial sector, payment processing system
In the payment processing system of companies, blockchain offers a huge impact, potentially eliminating the need for a third party intermediary. interfering with a third party, but now with blockchain technology, transfers can be done quickly and instantly.
3. Supply chain management
Some experts believe that blockchain can become “the system that operates the supply chain”. To manage a process where there is a change of owner for a certain type of asset or asset status, the ideal option is blockchain technology.
In the supply chain, blockchain allows for instant status updates and increased security and transparency. No matter what industry needs to track the supply chain, blockchain is possible – a system that allows for undeniable, accurate, and timely tracking.
4. Property ownership protection
To claim property rights, blockchain technology can help you with this, for example, by registering music rights on blockchain. By creating an irrefutable record of ownership in real time, blockchain allows you to protect your personal property without anyone being allowed to copy or tamper with it.
This becomes even more useful for assets that require anti-counterfeiting measures, such as pharmaceuticals, expensive luxury items, diamonds, electronics etc. and BlockVerify allows for The company does it – register its own products and make the supply chain transparent.
In an era when the technology trend is constantly evolving, besides blockchain, there are likely to be many other technological revolution booms. However, considering the present time, the power of blockchain technology has changed the world is one thing we cannot deny. And it is very likely that in the future, blockchain’s applications will continue to expand, more and more by a certain number estimated exponentially.