Blockchain is a tamper-proof digital ledger that records transactions on a public or private peer-to-peer network. The registry continuously records the history of asset transactions between peers in the network in the form of blocks of information. All approved blocks of transactions are connected in a chain. Thus, the blockchain is a source of reliable data, and chain participants see only those transactions that concern them.
The digital currency market, which is actively developing today, is based on blockchain technology. Crypto traders who regularly buy BTC to ETH are well aware of all its advantages and use cases. If you are also interested in this information, read the following material carefully.
Main Advantages of Blockchain Technology
A blockchain is a universal tool for building various databases. It has several distinctive advantages:
- Decentralization. There is no main data storage server. Each member of the system stores all records;
- Absolute clearness. Players are able to track payments implemented in the system;
- Confidentiality. The storage of data is provided in encrypted form. You are not capable of defining the recipient or sender of the information unless he knows the wallet number;
- Reliability. Any attempt of unauthorized changes is rejected due to inconsistency with previous copies. A special unique code issued and confirmed by the system is required for legal data change.
Ways to Use Blockchain in the Real World You Should Pay Attention to
Blockchain was initially developed for digital currency. In particular, Bitcoin was created on its basis. But today, the technical community is looking for other potential uses for this technology. Let’s consider some of these.
Games
Cryptocurrency has allowed traders to exchange MATIC to ETH and other crypto coins profitably. But the sphere of finance is not the only one where it finds its successful application. Immediately after the advent of cryptocurrencies, the developers found blockchain games. The technology creates a distributed and transparent open source network for players. This introduces innovative solutions, including:
- Real asset ownership;
- Consensus-based updates;
- Decentralized marketplaces;
- Streamlined tokens, etc.
One example of the real use of the blockchain is Crypto Kitties. This is a game that allows people to collect and breed digital cats.
Real Estate
Blockchain improves service levels in real estate suffering from problems such as:
- Slow transactions;
- Administrative lawsuits;
- Distrust between buyers, sellers, and intermediaries.
The advent of blockchain systems in the real estate industry makes it possible to automate routine tasks and agreements. It also allows ensuring transparency of listing and data tracking, as well as reduces costs.
Insurance
Blockchain has brought many benefits to the insurance industry. These include strengthening anti-fraud, simplified paperwork, and reinsurance. The innovative potential of blockchain for solving insurance problems is very high. About 80% of insurance company leaders have either already implemented it or are planning to test it in their divisions.
Safety
Blockchain offers solutions for various levels. At the individual level, security solutions include authentication. It provides complete control over personal information. At the organizational level, it allows companies to maintain a distributed workflow and prevent Dos attacks.
Art
Non-fungible tokens (NFTs) are a hot topic in the art world. Works based on this technology are sold at auctions for millions of dollars. The development of NFT has opened up crypto art and digital collections for us. It has also allowed artists, musicians, and influencers to earn additional income from their unique works.
Thus, the importance of blockchain is determined by its adaptability to various fields of activity based on large databases. This is especially relevant in transitioning from the information technology society to the data technology society.
