In a recent activity by hackers in Australia, it was found that hackers locked all doors of a hotel, and they offered to open the doors only if they got payment in bitcoins. Looking at all these activities shows how bitcoin is becoming the buzz word for its good characteristics and bad characteristics. No doubt, different types of illegal activities are being associated with bitcoins, and bitcoins are in the news because of lots of loopholes.
But, if you pay attention closely, bitcoin is also known for different positive features. Bitcoin is gaining prominence because of the technology that runs behind the functioning of bitcoin. This technology is called blockchain technology.
The effect of blockchain technology is similar to the world as the internet’s effect on traditional computers in the 90s.
What is blockchain technology, and why is it important?
The blockchain system is a computing system that constitutes an entire set of records within it. These records contained within a blockchain are called blocks. The blockchain technology and technique are said to be unique as the copy of the entire system, and set can be easily kept simultaneously on millions of computers that are located anywhere.
Just like the invention of the internet made the idea of hubs obsolete by making it a network, the emergence of blockchain technology makes sure that storing information at a particular location can be eliminated and people on the network can have easy access to information and data.
Blockchain technology enables the information to get stored on multiple systems, sometimes even on millions of systems. If a new set of data or information is added on the blockchain, the entire network knows it. Thus, people and systems on all locations get easy access to data sets.
An unlimited copy of data sets is updated everywhere. Another amazing point about blockchain technology is that anyone can easily add records to the new system without changing the older records. Thus, everyone on the network has equal access to data stored in the network. Adding new data does not require other people’s permission, but changing an older data set may need permission from the people who are on that network.
Thus, the changing of data sets is almost impossible through blockchain technology, and this is one of the biggest advantages of blockchain.
Thus, all records stored in blockchain technology are 100% reliable.
Why should business care?
Like banks, insurance companies, property dealings, traders, and many companies and businesses are involved in intermediary activities count on to make a profit by relying on their reputation. For example, you rely on and trust a bank because you know that they keep track of their transaction, and they will help your money reach a particular spot at a particular time. Thus, an element of trust is involved in recordkeeping and book managing by banks and other financial institutions.
But wouldn’t it be perfect if you and a stranger can transact without involving the bank, government, or any other financial institution in managing finances?
You will be surprised to know that this is possible when blockchain technology is involved. You can easily pay and receive payment without involving any intermediary in the process. Thus, the process also reduces the intermediary, and you get quick payment without waiting in the protocols and rules created by the blockchain technology.
The best part about using bitcoin or blockchain technology is that it is reliable and trustworthy. Thus, you don’t have to worry if the data will be manipulated as millions of computers and systems have access to the same data.
Today, businesses worldwide are thinking about going down the lane of bitcoins as it eliminates the need for an intermediary, and the transaction process is pretty quick and hassle-free. In addition to this, personal information about the customers and users is always safe when it comes to bitcoins and blockchain technology.
With the growth in the number of people willing to use bitcoin as a mode of payment, take your business towards this path so that you can join hands with the new digitalized world. To know more about bitcoins, join this BitBolt App.