One of the interesting debates with the digital asset community of investors and developers is the value of the actual cryptocurrency, such as Bitcoin, compared to the value of the blockchain technology that drives it.
A blockchain is a form of distributed ledger technology. It is a way to document and record the transactions that occur with a specific crypto asset within a network of member computers. This ledger of activity is copied onto all the computers in the specific blockchain, which is designed to increase transparency while also significantly boosting security. Without a central ledger and record, hacking or manipulation of the data is extremely difficult.
Beyond Cryptocurrencies
While blockchain technology is required in cryptocurrencies, it is also used for a number of other applications and specific types of transactions. The use of blockchain is still developing, but increasingly it is seen as safe, secure, and more efficient way to manage many different types of financial issues.
One of the reasons that blockchain technology is valuable for large global types of transactions is the ability to bypass traditional banking and financial institution protocols. Using blockchain has become faster and more efficient, without the costs of international transactions that include multiple currency conversions.
Another way that blockchain can be sued in the future is in identity security management. Using independent verification and control over the blocks added to the chain, each identity can be verified in real time, reducing the risk of identity theft in all types of transactions and interactions.
Finally, blockchain technology is already used in tracking and evaluating the performance of different supply chains. The real-time reporting and the ability to create smart actions within the blockchain can automate and oversee a supply chain efficiently and effectively.
