Is Blockchain the Answer to Today's Global Crisis?
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Data security is a global crisis and everyone is affected. With so much of your information being recorded and transmitted online, privacy protection is now a necessity of utmost importance.
And no matter where you are in the world, you’re most certainly going to be overwhelmed with a lot of resources on how to handle and resolve this crisis. Some of them may be helpful, but others may just spread fear and uncertainty. That’s why it is important that you ask crucial questions such as “What is blockchain? Is it the solution to a global crisis?”
What is Blockchain?
Is blockchain the answer to today’s global crisis? Let us respond to this question by first answering what is blockchain? Blockchain is a shared and immutable digital ledger for storing data, recording transactions, tracking assets, and more. It’s a highly secure system; that’s why it’s near-impossible to have it hacked or changed. Bitcoin and cryptocurrency are the first widely known uses and best-known examples of blockchain technology. And as blockchain continues to evolve and grow rapidly, more blockchain innovations are expected to be created.
How does Blockchain work?
Today, blockchain is used across several industries that include banking, healthcare, insurance, manufacturing, and travel among others. And regardless of the industry where your business belongs to, blockchain lets users share valuable and confidential data in a secure and tamper-proof way.
Blockchain works on four basic principles.
- First is distribution. Each party or user on a blockchain has access to the entire database or permission to view it including its history. In other words, no one person or entity has control over it.
- Second is the transmission. Communication takes place between peers and each node stores and transmits information to all other nodes.
- Third is transparency. Every transaction in the system is visible to anyone with access to it. Each node or user on a blockchain has a unique code or address that identifies it. And users can choose to either maintain privacy or show proof of their identity to others.
- Fourth is irreversibility. Once a transaction is recorded in the database, it cannot be altered. No user can change or tamper it after it has been recorded to the shared ledger; thus, making every transaction, from medical data to financial records, safe and secure.
What are the Benefits of Blockchain?
Some of the most outstanding advantages of blockchain are the following:
- It prevents fraud.
- The data stored or recorded cannot be altered.
- It provides transparency. Anyone who has been provided access or permission can view all the transactions.
- The data is distributed across every node in the blockchain; hence, it’s available when the participant or the user who has access needs it.
What is blockchain? When it comes to managing, protecting, and storing data, blockchain is a highly promising and practical solution. It provides a secure way of authenticating and recording information, transactions, and more. This is why many businesses around the world are already adopting it. And with how efficient it works and the benefits it offers, there’s no doubt that blockchain is the answer to today’s global crisis.