Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
    data driven insights
    How Data-Driven Insights Are Addressing Gaps in Patient Communication and Equity
    8 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Current Landscape and Applications of Blockchain Explained
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Modeling > Current Landscape and Applications of Blockchain Explained
ExclusiveITModeling

Current Landscape and Applications of Blockchain Explained

Ryan Kade
Ryan Kade
5 Min Read
blockchain
SHARE

Bitcoin has altered commerce in remarkable ways. However, there are two lingering misconceptions about the crypto currency:

Contents
Blockchain explained: How does it work?The Importance of Blockchain Technology ExplainedBlockchain is the Future of the Financial Industry
  • Bitcoin transactions are anonymous.
  • Bitcoin transactions don’t leave a digital trail.

The entire bitcoin network relies on block chain technology to keep a permanent, public record of all bitcoin transactions. Block chain technology was probably an afterthought when bitcoin first emerged, but it is becoming increasingly important now that the digital currency has gone mainstream.

A reader recently emailed me requesting to have blockchain explained in more detail in a future blog post, so here is an overview.

Blockchain explained: How does it work?

Blockchain is a decentralized ledger system. The integrity of blockchain is established by making transactions easy to validate and impossible to tamper with.

More Read

cybersecurity practices
Best Cybersecurity Practices for Companies Using AI
Big Data Helps Drive the Future of Virtual Healthcare
Simplifying Cloud Database Management with Infrastructure Automation
Applying BIM to Design of Sites and Structures
The Growing World of e-Vaulting

Every transaction request is initiated over a P2P network. Every transaction must be validated by at least 51% of all computers within the network. After the transaction passes the validation test, a unique entry is stored in the ledger and the transaction is processed.

Third-party validation services have ceased offering authentication services to Blockchain, explained by Brookings University.

“Similarly, third parties that currently verify transactions (the central authority) stand to lose against the Blockchain (the decentralized network). As such, the Blockchain essentially dis-intermediates these third-party transaction verifiers: auditors, legal services, payment processors, brokerages and other similar organizations.”

The Importance of Blockchain Technology Explained

Bitcoin has grown in popularity, but is still not widely trusted. Trust diminished considerably after the collapse of Mt. Gox and other scandals.

Blockchain plays an important role in building confidence in the cryptocurrency. It promotes transparency and the authentication solutions also help thwart fraud. The blockchain ledger also leaves a trail, which makes money-laundering more difficult.

By promoting transparency and preserving the integrity of bitcoin transactions, Blockchain should stave off overzealous regulators that want to ban or heavily limit the use of bitcoin.

Blockchain technology can serve purposes for other financial entities in the near future. Since blockchain enables transactions to be processed so efficiently, many traditional financial institutions are beginning to explore similar solutions for processing fiat currency transactions. Datafloq explains:

“Many organisations are already exploring the possibilities of the Blockchain, although primarily still in the Financial Services industry. The R3 Partnership is a consortium of 45 of the biggest financial institutions, investigating what the Blockchain means for them. Next to the R3 consortium, four of the biggest global banks, led by Swiss bank UBS, have developed a “Utility Settlement Coin” (USC), which is the digital counterpart of each of the major currencies backed by central banks. Their objective is to develop a settlement system that processes transactions in (near) real-time instead of days. A third example is Australia Post, who have released plans for developing a blockchain-based e-voting system for the state of Victoria.”

One of our previous articles on blockchain explained this in a little more detail. Melissa points out that the entire financial industry could face a massive change if blockchain expands beyond bitcoin servers.

“Obviously if Blockchain catches on, the world of finance is going to be in for an explosive change. And with the transparency and security it offers, it appears that decentralized ledger technology, in one form or another, is the wave of the financial future.

The world banking infrastructure is at a crossroads. It can stay hidebound with past tradition or take a leap into this new and daring technology. The new technology promises greater transparency of regulatory reporting. Criminal financial activity such as fraud as well as money laundering will become much harder to perpetrate, since counterfeiting documentation will be nearly impossible. Identities of transactors stored on the blockchain, for instance, guarantees instantaneous authentication with no need for warehousing data in third party depositories.”

Ironically, people have warned about using bitcoin for money-laundering and fraud for several years. However, the bitcoin community has developed the technology that may eliminate it in other parts of the financial sector as well.

Blockchain is the Future of the Financial Industry

Blockchain was originally developed to reduce the risk of fraud and stave off regulators in the bitcoin network. It has become more effective than anyone expected, so is expected to play a key role in the future of the financial sector as a whole.

TAGGED:bitcoin blockchainBlockchain Explainedblockchain technology
Share This Article
Facebook Pinterest LinkedIn
Share
ByRyan Kade
Follow:
Ryan Kade is the editor overseeing contributed content at Smartdata Collective and contributes weekly column.

Follow us on Facebook

Latest News

data analytics and truck accident claims
How Data Analytics Reduces Truck Accidents and Speeds Up Claims
Analytics Big Data Exclusive
predictive analytics for interior designers
Interior Designers Boost Profits with Predictive Analytics
Analytics Exclusive Predictive Analytics
big data and cybercrime
Stopping Lateral Movement in a Data-Heavy, Edge-First World
Big Data Exclusive
AI and data mining
What the Rise of AI Web Scrapers Means for Data Teams
Artificial Intelligence Big Data Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

understand the role of blockchain in bitcoin autotrading apps
Blockchain

Blockchain Offers Huge Stability to Bitcoin Autotrading Apps

11 Min Read
dogecoin and its dependence on blockchain
Blockchain

Blockchain ETFs Offer Awesome New Crypto Investment Opportunities

6 Min Read
fintech
Artificial IntelligenceBlockchainExclusiveFeaturedFintechIT

Where Fintech Is Headed in 2018

6 Min Read
benefits of blockchain technology
Blockchain

4 Benefits that Have Made Blockchain so Popular in Recent Years

4 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?