The world is tired of all the traditional ways of working. Now people are always trying to make their comfort and their work faster and safer. They want complete freedom in all their affairs.
Blockchain and cryptocurrency are also revolutionary steps towards implementing all these things. Are you one of those who wants to know how it all works and what the effects are? Then this article is for you.
What is blockchain?
Blockchain seems like a very complicated thing. And, of course, it is. But its basic concept is quite simple. A blockchain is an “information collecter store” in which information is stored digitally. Data or information in blockchain is stored in a typical structure in table format called a Block.
This information store (database) is designed to house a massive amount of information that can be accessed and filtered quickly. All this housing is achieved by servers of powerful computers. Each block in-store or chain contains many transactions data. Whenever a transition occurs on blockchain, data is recorded in every participant’s ledger. Blockchain is an effective system. It is nearly impossible to change, hack or cheat it.
When someone wants to do a transaction in this system, he requests a trade. The request is broadcasted through the peer-to-peer network using nodes. The whole network of nodes authenticates the user status and transactions using a standard algorithm.
What is cryptocurrency?
Cryptocurrency is a modern type of currency. It is a digital currency. It can be exchanged digitally for fiat currency, services, and goods. It uses a digital ledger with cryptography for secure transactions. These currencies use blockchain technology for transactions and their records. Marketcap of crypto is more than 2 trillion dollars.
More than ten thousand cryptocurrencies are available in the market, but still, a significant portion of the total market cap is occupied by a cryptocurrency called Bitcoin. Cryptocurrency is footwork toward a decentralized world.
Cryptocurrencies are traded through exchanges like stocks, but unlike stores, the crypto community governs and controls all the operations and transactions themselves. To trade crypto, first of all, you have to choose a crypto exchange. Make an account on that exchange. Then after fulfilling their, all conditions exchanges allow trading.
Impact of blockchain and cryptocurrencies
Blockchain technology and cryptocurrencies affected many other markets deeply in few years. Many industries are going to boom, and some have the reverse effect. Here is an overview of some sectors affected by these technologies.
Banking:
The main impact of blockchain and the crypto industry is on the banking industry. The use of these technologies improved transparency, trust, and security. The main revolution is transaction fees.
The transaction fee of crypto is much lesser than banks, and its transaction is much faster. This system damaged the banking system adversely by allowing transactions without any intermediate or third party.
Cyber Security
Blockchain improved cyber security as it is a decentralized platform for data storage due to which sensitive may be stored and protected. This technique makes it almost impossible for hackers to steal data. Data storage companies are going to move towards blockchain.
Networking and IoT
Using blockchain to store internet of things (IoT) data makes a strong wall for security that hackers have to bypass to get access to the network. As data saved on it is temper-proof. This technology provided a way to reduce inefficiencies, increased security and improve transparency by patching up with IoT.
Agriculture:
An agriculture blockchain has a tremendous impact on the Agri industry. It will be built direct connection and trust between merchants. It will help in making sensors for generating data and formers storing data. I will increase the speed of distribution of grown crops and industries processing food. The supply chain becomes more efficient with the help of blockchain.
Education
Blockchain has an impact on education and academia. This technology can be used for record-keeping and for keeping research data. Some institutes started providing transcripts and certificates on the blockchain.
Travel & Automobile
It helped in solving problems of companies to manage their products. For all types of leasing, buying, selling of vehicles transaction is necessary, but blockchain changed this concept by launching proof-of-concept. It streamlined car leasing.
Today companies are building blockchains to track vehicle history. Tracking logistics is relatively easy by using blockchain. The use of cryptocurrency solved the issue of payment for big vehicles saving extra fees. It also resolved the payment method issue by regional distribution of the world. It allows paying all around the world without opening an account in that country.
Healthcare
The digital ledger storage system enabled the secure transfer of patient medical history, medical records, and supply of healthcare elements. It offers patients to control their accounts by themselves. Mean without the permission of the patient; someone can’t transfer his history to another professional.
Gaming
Gaming industries are widely using blockchain and cryptocurrencies. Many games are games and also giving their rewards in crypto. Gamers have surety that their digital assets are safe from game owners.
Art
Arts are going to digitalize now. The Revolution of NFT boomed the digital art industry. Now digital art is selling for millions of dollars. Blockchain allows collectors to collect art directly by creators. It is badly affecting the physical art industry. Now the value of digital art is increasing day by day. Digital artwork is sold for 69.3 million$ on the blockchain.
Energy management
Energy management is easier with the help of blockchain. But the consumption of energy is a dark side of this technology. Much more energy is required to save transactions on the blockchain.
Conclusion
Blockchain and cryptocurrencies are the most outstanding achievements in the field of technology. They enable the world to protect and save their data in this era of data-stealing. They affect every industry like banking, cyber security, food management, gaming, music, art industry, travelling, hotels, pharma, tourism and hospitality, 3D printing, and much more. Some have positive effects, and some have negative based on industrial structure.