Have you heard of “BlockChain”?
Many financial entities and governments are now paying very close attention to this “Idea” which might change the base of whole financial markets in the world.
This “Idea” is also known as the second greatest invention following the “Internet”.
What is “Blockchain” first of all?
“Blockchain” is an idea and a tool to prove the “Credibility” of the relevant information automatically without anyone managing it.
This “Blockchain” will prevent from someone falsifying certain data/information of transaction histories.
Unlike before, we do not need any central banks or an entity managing the whole transactions when someone makes trades with another. You may have already thought of it though, “Bitcoin” is completely based on the system of “Blockchain”.
“Blockchain” will be managed by a number of computers all over the world, and each computer will have the original transaction history of the relevant financial instrument.
As in everyone can see every single transaction made in the world from anywhere in the world. And if there are any computers with different data than other majority’s, then the data of of the minority will be updated automatically.
This will make the “Blockchain” very secure and almost impossible to be manipulated.
If this “Blockchain” idea becomes our standard, we will not need a central bank or authority to approve our transactions, but we all will make the whole transaction and a huge entity by ourselves.
It is known that “Blockchain” has been invented by the founder of Bitcoin system.
For the people who couldn’t get the basic idea of “Blockchain”
“Blockchain” is a Technology to process/save financial transactions with low cost in a secure way.
No Central for “Blockchain” Technology
Normally, all financial transaction data are managed by huge computer systems with expensive 24/7 server of Mega-banks(or other financial entities) in the world.
These Mega-banks will act as the managers for the whole transaction hisotries, and without their authorization or data, no one wouldn’t be able to verify if a transaction is valid or not.
On the other hand, there is no such “Manager” for “Blockchain” like Bitcoin.
Instead of saving the transaction history to some specific servers, “Blockchain” technology will save the data on the web, where everyone can access and view them all.
Millions of people will have the same original transaction data of the relevant financial instrument.
This will make the system:
Almost impossible to manipulate or falsify the data
Low cost as no systems or servers are required
Very stable as there is no risk of server down/trouble of main servers
The name “Blockchain” came from the way the information is saved. All transaction data will be saved on internet as a “Block” with certain amount of date in it.
The “blocks” will be connected each other and keep registering data continuously. And that is the basic concept of “Blockchain”.
“Blockchain” Evolution to International Transfers
Almost impossible to falsify the data and low cost.
The advantages of “Blockchain” has been gathering many eyes of financial companies and IT ventures, and many are now looking for the way to use the technology and apply it to their service.
Especially for “International Transfers”, now that an international wire transfer may take about 5 days and a few dozens of commissions by corresponding banks, but it would take a moment and zero cost if the “Blockchain” is used for it.
“Zero cost for 24/7 and instant transfer” is something many financial companies are dreaming of.
We are not talking about the future, but ther are already several Mega-banks performing ongoing trial of their “Blockchain” technologies.
Very Attractive but not a Magic
“Blockchain” does sound like an unbelievable technology that will surely change the world though, there are many opinions regarding to the technology.
You might still remember the case of “Bitcoin”, and there are some users who have lost some or some people even mention that their money have disappeared in the history.
The idea of “Blockchain” can be used for many other industry sectors but not only for financial related.
Follow their News, and you will hear more progress of the technology very soon.