Bitcoin and the latest shift in blockchain technology by Nibras Muhsin, MBA | Certified Blockchain Expert
Blockchain has been a product of evolution for several years. It did not just happen as a blast. Its evolution can be traced from the virtual digital currencies and the Fintech technology. Even though the creation of virtual currencies was a noble idea, they did not survive the market onslaught. The centralized nature of the market could not allow them to flourish.
Authorities thought that if the currencies were not controlled could open doors for fraud or other illegal activities. A good thought, however, it killed them. To challenge this old way of thinking decentralization was born. However, it took some time before people could embrace or trust the new idea or technology.
The Birth of Bitcoin
That is how in 2008, Nakamoto decided to create the first wonder digital coin and named it “Bitcoin”. The new cryptocurrency utilized on the cryptography technology and hence the origin of the name “cryptocurrency” Nakamoto introduced chain blocks thereby giving birth to blockchain technology. It used peer to peer encryption to transact. What concepts did it use?
· Proof of work (PoW) to validate transactions as well as safeguarding against duplication
· Used encryption for identity and ownership purposes
· A shared transparent digital ledger – the blockchain technology. Therefore, Bitcoin was created to have autonomy and use a consensus process to validate and complete transactions.
The use of a shared ledger allows the users to have access to all the data. Once one creates a wallet and gets a digital key they can access the blockchain network. Therefore, there could not be Bitcoin without Blockchain.
How Blockchain Technology has evolved
Many Blockchain beneficiaries may not be aware of the impact it has had across the globe. However, since its inception, it has influenced the way businesses are being conducted the world over. Below are some areas it has been able to impact positively.
The emergence of decentralized finance (Defi)
Brought collaboration of financial applications that rely on the technology. The way assets are managed or stored has changed. Assets are now being stored in software instead of banks.
Its application in the supply chain
The technology allows for smooth and transparent transactions when it comes to supply chain management. The fact a customer can place an order, pay, and receive the supply in the shortest time possible and without being physically present. It means reduced costs and a fast way of doing business devoid of third parties. Another good thing is that the transactions cannot be reversed or altered.
The customer or client data
The way it is handled or stored has taken a notch higher by being more secure and confidential. The users’ data or information is in their hands meaning no third parties can acquire the information. The way data is handled in business has changed to incorporate blockchain technology for privacy, transparency, and competitiveness. Gone are the days when data used to be stored on files, and other traditional ways. It is just a click and the information is shared with the concerned or stored.
Hiring Process Has Become Easy
Another shift in the way Blockchain has changed the landscape is in the process of hiring or recruiting or even paying the workforce. The technology enables HR to verify credentials via the software, same with the payroll. No need for physical involvement but all this is accomplished in one click, thanks to Blockchain technology.
We have not seen the last of the blockchain technology, much more is coming. More and more industries are continuously embracing tech. As new technological advancement takes shape there will be more blockchain improvement and shifts that will result in individual or retail applications everywhere.