Blockchain Explained. You’ve likely heard of it, maybe understand a possible use or hear how it may transform systems as we know it. Blockchain will save money, save time and provide greater security. Quite simply, it is starting to disrupt and revolutionize a large swath of industries. Follow along for blockchain explained.
The first generation of the digital revolution brought us the Internet of information. The second generation — powered by blockchain technology — is bringing us the Internet of value: a new platform to reshape the world of business and transform the old order of human affairs for the better.
The blockchain is a vast, global distributed ledger or database running on millions of devices and open to anyone, where not just information but anything of value — money, but also titles, deeds, identities, even votes — can be moved, stored and managed securely and privately. Trust is established through mass collaboration and clever code rather than by powerful intermediaries like governments and banks.
Save Money: Reduce Costs & Eliminate Fees
The blockchain is the financial challenge of our time. It is going to change the way that our financial world operates.
Blockchain technology provides vast savings opportunities across many industries. Traditional banking institutions must adapt. Wall Street is already starting to embrace blockchain technology and invest hundreds of billions of dollars. Big banks, financial institutions and the like identify the ability to reduce costs and eliminate or reduce fees.
Just recently, a Litecoin transfer of $99,000,000 dollars was done in just seconds and for a fee of just 40 cents (compared to days and thousands in fees in a traditional banking system.)
We have elected to put our money and faith in a mathematical framework that is free of politics and human error.
-Tyler Winklevoss, Co-creator of Facebook, top investor in Bitcoin
Save Time: Instant Validation
Blockchain will make transactions cheaper and save people time. Blockchain financial transfers are nearly instant – compare that to a wire transfer or typical bank ACH that easily takes 48-72 to verify and settle. Today, intermediaries (banks, clearing houses, notaries, etc.) are required to execute and provide verified transactions. Blockchain technology will provide exactly these same functions, which means we will no longer need intermediaries. Massive savings in money and time!
I think that governments are going to get disrupted by the blockchain. I think in the same way that the Internet forced everyone to evolve, the Blockchain is going to change the game again.
Safety: Verified Privacy
Pretty uniformly, people want the benefits of bitcoin and the blockchain – near-instant transfers, globally available on any Internet-connected device, highly secure, and nearly-free value transfers.
With blockchain’s encrypted and immutable record, it will likely be used to create universal digital identities – filled with info that only we will control and that will link back to issuing banks, governments or even employers. Many large companies are joining forces to develop a blockchain-based network that will enable anyone to exchange digital credentials online – and without the risk of unintentionally exposing any private data.
Although there are many more complex layers to how blockchain technology works, at a high level, it’s important to keep in mind how blockchain will save money, save time and provide greater security for us all.
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