Blockchain is the technology which is known most commonly as the driving force behind the Bitcoin cryptocurrency system. The advent of this technology brought forth a wave of peer-to-peer transactions which were safe, immediate, and no longer required verification from an existing commercial bank. One of the many features of blockchain is that it is able to validate and preserve all transactions that take place using the technology in a permanent record, creating an online ‘ledger’ viewable by anyone at any time. Most people only know of blockchain technology in relation to bitcoin, however, Fracas Digital NFT experts are here to explain a number of other useful applications of blockchain technology and here are just a few…
Firstly, security. Blockchain technology can provide a great deal of security. This has been seen in relation to cryptocurrency, specifically bitcoin, and other online transactions but blockchain can also be used to store passwords and other data on a decentralised network instead of a centralised server. As well as this, blockchain offers added protection against data tampering since it is completely immutable. Additionally, through data being stored on a decentralised network, it is hard to be hacked into and wiped. This allows a greater access to data since access isn't depended on the operations of a single company.
Money Transfers and Economic Advantages
The original conception of blockchain technology was for the benefit of money transfer. Money transfer using blockchain is generally less expensive and faster than using existing money transfer services; money on the blockchain can be transferred across borders in minutes. Additionally, more and more companies in the past few years have begun offering decentralised cryptocurrency exchanges showing its growing trust and support for business transactions.
Benefits for creators of NFTs
Moreover, blockchain technology has aided to support the recent NFT boom through preventing data from existing in two places at once, allowing NFTs their non-fungible characteristic and allure. Putting an NFT in the blockchain guarantees it is the only copy of the digital art in existence. Blockchain technology secures an investment in an NFT and ultimately can be used to prove the ownership and authenticity of the token. Security also comes in the form of artistic royalties as artists can ensure the same file doesn’t exist in more than one place and reduce piracy and forgery.
As mentioned before of the secure nature of blockchain technology, it can be a useful tool for accounting and auditing as it decreases the possibility of human error and maintains a high integrity of the records. Data is able to be stored on the blockchain as well as locked preventing information from being tampered with and records altered.
Because digital identities can be stored on the blockchain, blockchain can be used by government administrations to benefit welfare programs and social security. Medical records and information can be securely held on the blockchain and allows doctors and other medical professionals to obtain accurate and up-to-date information on their patients quickly and easily. Blockchain in these cases opens the door to a more efficient and secure way of holding and accessing information for our benefit.
Overall, the development of blockchain technology has aided in securing the online marketplace, providing peace of mind for users when making transactions, when investing and selling online. Additionally, blockchains ability to secure data has uses and potential outside of crypto and into daily life, governmental activities and healthcare.