Blockchain is observed to be amongst the frontiers of digital transformation in 2021.
Blockchain is the new buzz in the industry. When we think about bitcoin and crypto-currencies, blockchain automatically comes to our mind, as it forms the building block of cryptocurrency. Moreover, this technology is widely accepted in automobile sectors, for conducting elections and observing the political landscape in any industry. Despite the initial criticism, blockchain is being observed to establish transparency in sectors. The global blockchain market size is expected to grow from US$3 billion in 2020 to US$39.7 billion by 2025, with a CAGR of 67.3% between 2020-2025. It is observed to be amongst the frontiers of digital transformation in 2021.
As this technology permeates almost every sector, here are the important things to know about Bitcoin before investing in 2021.
- Decentralised System- One of the reasons behind criticism for this technology is its decentralised system. Instead of storing information or data in a particular area, the information is stored across linear containers called blockchain. Moreover, since the database is not central, anyone can see the data and can carry the user’s unique signature.
- Digital Ledger- Like an accounting ledger, blockchain is a distributed digital ledger that records every transaction made by the user. As it is maintained across different blocks, the transaction or the information is traceable. This mitigates the risk of errors, such as manipulating the data, as the information is maintained across all blockchain blocks.
- Peer to Peer Network– Like mentioned earlier blockchain is decentralized, and the information is maintained across a network of systems. The infrastructure of blockchain doesn’t allow any central network to dictate the transaction. Moreover, as all the information is public, the users can directly transact with each other, without any geographical and time zone interruption. As there is no third-party mediation, the transaction is instant, with knowledge about the transaction across all the networks.
- Cryptocurrency- Cryptocurrency is the main element of blockchain. It guarantees blockchain security in the form of cryptographically encrypted currency and follows a set of protocols that any government’s or authorities intervention. They have an open code, making it very easy for anyone to use it and modify it. Moreover, just like any other currency, this can be traded in any currency exchange.
- Open Source Software- With open source software, one of the greatest attributes of blockchain is that it is prone to huge improvements by collaborating various features to its software. Moreover, as it is Open Source Software, it is extremely transparent, thus maintaining users’ and clients’ trust.
- Easier Financial Services- Like any other currencies that stimulate financial services like applying for loans or buying a product, cryptocurrency aids in financial processes. Many banks like JP Morgan and Chase are granting financial services using cryptocurrencies. Moreover, with its Peer-to-Peer network, its financial services are feasible to achieve
- Software Development- Blockchain is observed to favor the web developers owing to its decentralized system and Open Network Software. As it provides a possibility of innovation and modification, new tools can be applied for making customized software applications.
Code Of Conduct- The technology is designed in such a manner that the software attaches a large number of computers, which have a single protocol for operations known as Code of Conduct, for exchange of information. The advantage of this is; the web developers won’t require servers to monitor information across the computers.