Described as a distributed database, Blockchain is a great way to keep track of various transactions. This includes property records, which can now be tracked with title insurance, unsearchable folders of deeds in City Hall, and dusty tax records. Its benefits go far beyond this, though. Read on to discover why Blockchain matters. — It’s immutable and secure! If you’re still unclear, here are the basics:
Distributed ledgers Blockchain and distributed ledgers are both methods of data storage. Unlike the traditional databases, distributed ledgers do not have a central database. Instead, the data is stored on different nodes in a peer-to-peer network. Each node has its own copy of the database, and each new transaction is written onto a block on the blockchain. The transparency of distributed ledgers makes them popular for various applications.
The rise of bitcoin in 2009 raised interest in the emerging technology. It was a clear demonstration of how the technology worked, how it could scale, and how secure it could be. As a result, organizations across industries experimented with DLT and blockchain. These early adopters included the pharmaceutical, healthcare, and financial services sectors. Eventually, this technology was applied in supply chain management. However, the World Bank Group did not endorse this technology, and it is currently investigating other applications.
The technology behind blockchain and distributed ledgers is very different, but they are both incredibly useful for financial transactions. They help reduce operational inefficiencies and offer increased security. Blockchains contain immutable records and can therefore create tamper-proof logs of sensitive activity. In addition, the technology can be applied to many different industries, reducing the risk of counterfeiting and addressing threats related to information security. So, what can blockchain and distributed ledgers do for financial institutions?
Continue reading: https://medium.com/@sannanmalikofficial/why-does-blockchain-matter-2b097fb40643
Distributed ledgers Blockchain and distributed ledgers are both methods of data storage. Unlike the traditional databases, distributed ledgers do not have a central database. Instead, the data is stored on different nodes in a peer-to-peer network. Each node has its own copy of the database, and each new transaction is written onto a block on the blockchain. The transparency of distributed ledgers makes them popular for various applications.
The rise of bitcoin in 2009 raised interest in the emerging technology. It was a clear demonstration of how the technology worked, how it could scale, and how secure it could be. As a result, organizations across industries experimented with DLT and blockchain. These early adopters included the pharmaceutical, healthcare, and financial services sectors. Eventually, this technology was applied in supply chain management. However, the World Bank Group did not endorse this technology, and it is currently investigating other applications.
The technology behind blockchain and distributed ledgers is very different, but they are both incredibly useful for financial transactions. They help reduce operational inefficiencies and offer increased security. Blockchains contain immutable records and can therefore create tamper-proof logs of sensitive activity. In addition, the technology can be applied to many different industries, reducing the risk of counterfeiting and addressing threats related to information security. So, what can blockchain and distributed ledgers do for financial institutions?
Continue reading: https://medium.com/@sannanmalikofficial/why-does-blockchain-matter-2b097fb40643
