Jason Guck Explains Blockchain Technology

The Starting Point of Blockchain Technology—Cryptocurrency

Don’t panic after seeing the complex word “cryptocurrency.” Before fully understanding what Blockchain Technology is, we should start with cryptocurrency. A cryptocurrency is virtual and digital currency that employs cryptography for security. As a result, it is very hard to counterfeit cryptocurrency. Also, you may want to note that is fully organic, which means that it is not issued by any centralized authority. So owners do not need to fear government control. Bitcoin, is the most iconic cryptocurrency.

What is a Blockchain? 

So, what is a blockchain? Well, it is a decentralized, public and digital ledger of all cryptocurrency transactions. In easier terms, it is the way accounting is done for cryptocurrency. The blockchain is constantly growing, since transactions are constantly being added to it. So, it provides market participants a way to keep track of transactions without the need of central record-keeping.

Benefit of Using Blockchain Technology

Utilizing blockchain technology can provide investors and customers with numerous advantages. Here are just a few of them:

•Enhanced accuracy- Without blockchain technology, you would need to keep a physical account. Manual entry of transactions is often prone to human error, and quality assurance can be extremely time consuming. If you use blockchain technology, accuracy can almost be guaranteed, since it is nearly fully automated. This is a huge benefit of a blockchain.

•Inexpensive- Imagine you are a business owner; you can understand that accounting work is not something you want to be spending too much time on. Electronic ledgers cost much less than traditional accounting systems. For example, less employees are needed, and less human error results in reduced operational costs.

•Easy and convenient- Repetitive confirmation procedures are no longer a necessity, due to the high security of cryptocurrency. Also, processing delays are minimized, meaning less money is held against the chances of pending transactions. This can help businesses to reduce risks.

•Boosts international trade- Blockchain technology makes international trading much more seamless.

Almost no human involvement is required in processing under the blockchain. Payment and processing are all automated. Also, points mentioned above like reduced risks of transaction and shorter settlement costs also mean that more revenue opportunities can be created for businesses. Blockchain is just such a powerful technology that it brings so much benefits to the whole business world.

Who Uses Blockchain Technology?

There are many users due to the several benefits of blockchain technology. As mentioned above, traders tend to employ blockchain technology to attract more intentional trade. Accountants are also starting to use blockchain technology due to its high accuracy and low costs. Purchasers use it to set up smart contracts and make automated payments. The blockchain significantly reduces fees for E-Commerce companies and makes them much more efficient and cost effective. And of course, people who use cryptocurrency will always use blockchain technology, as these two are essentially interconnected.

The Future of Blockchain Technology

The appearance of blockchain has led to an evolution in the commerce world. The whole concept of payment and currency, as well as accounting, has been crashed and rebuilt. With this brand new technology, there are many opportunities; more businesses and lower costs, higher security and less risks. Blockchain technology is further expanding and popularizing each and every day.

 

Check out this video by Sci Show for even more info!

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