Once information is updated on the blockchain, no one can attempt to alter or forge the records.
Blockchain is a disruption that will have the greatest impact to the financial industry. Big banks and some governments are already using the blockchain to revolutionize the way data is stored and transactions are processed. Representing the second generation of the Internet, it holds a huge potential to transform the industry and the world extremely. Whether we like it or not, we simply have to embrace the technology.
As a distributed ledger, the blockchain aims to increase security, lower costs, and eliminate errors and failures. It enables a reconciliation of digital records in real time. Unlike the first generation of Internet, it will transform:
- risk management
- funding and investing
- moving value
- authenticating identity
- lending and borrowing
- exchanging value
- storing value
The technology does not only store and move information securely, but also money, titles, equities and other values.
It is already known that the blockchain keeps a permanent record of all transactions over the network. It can be used to verify transactions and cryptographic keys. It does not only allow us to store information but also gives us complete control over it. It also helps us verify the timestamp, validity and status of entries on the register. Furthermore, it makes it impossible for anyone to make changes to any information in the blockchain without explicit permission from the entry or the creator.
Through the blockchain, trust is established with clever code and mass collaboration. It is a platform of transparency with regards to structured recorded information. It is an open source code, which everyone can download for free and develop new tools to manage transactions online. In a word, it holds the potential to unleash numerous new applications and unrealized capabilities to transform many things.