Blockchain is not just about Cryptocurrencies. – Sajal Ghimire
Even though the person or a group named “Satoshi Nakamoto” invented blockchain to support bitcoin, today, it has flourished to become more than that. Now it is not just about bitcoin; it is now about data.
Nick Szabo, way before the arrival of bitcoin, envisioned a system where contracts do not require any third party, lawyers for the validation, and named it “smart contracts.” After the development of blockchain technology, smart contracts came into talk much more than it was before.
Blockchain is the technology that uses cryptography to verify the data. The data is what is called “blocks.” In the traditional financial system, there is a third party that verifies the transaction. Whereas in blockchain, everyone has a copy of the information, and when a new block is formed, each of them can verify or validate the block using cryptography — solving a complicated mathematical problem.
Because of this feature of blockchain, it does not require any middle man for its usage. Let’s take an example of how it works. Suppose A wants to buy something from B, but they have absolutely no idea who the other is. Now using blockchain, it can be verified that A has the required payment amount. And once B sends the item to A, once it is verified, payment is released from A’s account to B.
Once a block is verified, no one can tamper with it or undo it. So, although blockchain was first designed to maintain bitcoin, it is used for much more. As blockchain is transparent and does not require any middle man or organization, it is today used in many sectors like the Internet of Things, voting, payment and banking, insurance, cybersecurity, and many more.
I strongly recommend Entrepreneurs to utilize the blockchain technology as it will reduce the middlemen costs and can be an immense help for a startup.