What are the benefits of blockchain technology and how is it transforming the world?
With cryptocurrencies leading the way, we can say “blockchain technology is here to stay”.
It’s no doubt that technology is moving at a very fast pace now.
This is because most of the technologies invented last year is already obsolete today.
Hence, people are now seeking for current technologies to do things at ease on a very low cost.
Therefore, since we are paying attention to blockchain technology here, let us explain blockchain technology by discussing the most important benefits of blockchain technology.
Well, before we proceed, what is blockchain technology?
What Is Blockchain Technology?
Blockchain technology is a system that has capacity to record information’s in a way that makes it difficult to hack, cheat or manipulate.
It’s operates with a system of computers storing information’s in a chain of blocks.
Transactions in this technology are recorded with an immutable cryptographic signature called a hash.
It enables the existence of cryptocurrencies and said to be invented by an unknown founder named Satoshi Nakamoto who is also the founder of the world most famous cryptocurrency called Bitcoin.
Therefore, let us check out some 13 transforming benefits of blockchain technology.
1. Blockchain Technology is Completely Decentralized:
It is completely decentralized, hence free from individuals, bodies and government manipulations.
It is also free from the control of individuals, hence no one can play it to their favor.
Blockchain has capacity to run on a decentralized network of computers, thereby reducing the risk of hacking, server downtime and loss of data.
This makes it genuine enough for transactions between individual all parties.
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2. Transparency:
It promotes clarity and openess between individual users.
It removes hidden policies, thereby making it possible to carry out transactions in the most transparent manner.
Hence, it offers clear improvements in transparency compared to existing record keeping and ledger available in many other industries.
This makes it the top choice for modern day technology users.
In addition, the introduction of blockchain technology has opened the way for cryptocurrencies as the future of money.
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3. It Eliminates Intermediaries:
There is no need for a middle man as seen in other commercial industries.
Hence, you don’t need anyone to sign documents and give stamp approvals like in traditional banks.
This makes it completely free and fair since it needs no special seal from anybody.
Therefore, it’s process becomes completely efficient and trustworthy since there are no intermediaries in the record keeping and transfers of asset.
4. Blockchain Technology Creates Rooms For Trust And Reliability:
The presence of a decentralized network and a transparent system makes it highly reliable.
This makes it easy to carry out transactions worth millions of dollars without the fear of scammers.
Hence, the system increases trust between parties involved in a transaction.
In addition, zero intermediaries in blockchain technology helps to foster transactions in countries where there is no trust in intermediaries.
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5. Blockchain Technology Operates On High Security Systems:
It provides high user’s privacy, hence all your data are completely secure and immutable.
This makes it impossible for fraudsters to get sensitive informations from users.
Hence, end users can avoid losing money and assets to scammers.
In addition, blockchain technology allows the use of digital wallets to store funds thereby increasing the level of security involved.
This allows you operate without having anyone spying into your wallet as a central body which is common in modern day banks.
Furthermore, transactions entered on the blockchain provides a clear trail of inflow and outflow.
Therefore, transaction can be easily investigated and audited.
6. Blockchain Technology Offers Innovation:
The wide range of uses in blockchain technology offers innovation to every one.
It can be used for both local and international payments in business transactions that allows cryptocurrency as a payment system.
Also, almost anything of value can be recorded on the blockchain.
Hence, many companies and industries are already developing blockchain based systems.
I believe innovation is the most powerful force for change in the world.
Bill Gates, Co-Founder of Microsoft, American business magnate, software developer, investor, author, and philanthropist.
7. Easily Accessible Technology:
Along with it’s wide range of uses, every one can move with the technology as they go.
They can handle it on their mobile phones, tablets and laptops, making it easy to access at any time.
Also, blockchain technology makes it easy to create applications without significant investment in infrastructure.
This is possible with recent innovations like the Ethereum platform, decentralized platforms and smart contracts.
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8. Reduced Working Cost:
Blockchain-based ledgers allows for removal of intermediaries and layers of confirmation involved in transactions.
Hence, transactions that may take multiple individual ledgers could be settled on one shared ledger.
This further reduces the costs of validating, confirming, checking and auditing each transactions across multiple organizations.
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9. High Transaction Speed:
The speed involved in blockchain is second to none.
Hence, you can swiftly send and receive assets in millions of dollars within a few minutes which will not be possible under a traditional banking system.
This is because the removal of intermediaries and settlement on distributed ledgers allows for dramatically increased transaction speeds compared to a wide range of other existing systems.
This makes it a top choice for successful entrepreneurs to carry out business transactions.
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10. It Gives Self Education And Information’s To End Users:
Since, the value of assets stored in wallets under blockchain technology is ever updated, it makes it impossible to cheat traderss who want to buy or sell their assets.
For instance, if a newbie trader buys any cryptocurrency at a cheap rate of $100.
If after a few months or years, he/she decides to sell it, there will be no need of a dictator to know how much the asset is worth.
Hence, you don’t need to hire and asset valuator or visit any bank to know the worth of your asset.
It offers self education to users since wallets under the blockchain receives auto updates on market price.
In addition, it doesn’t restrict users from certain parts of the world thereby making it a universal system.
11. It Offers The Cheapest Charge Fees:
It’s low charge fees allows people save more money which would have been lost to high charge rates available in other industries.
Have you ever imagine what it will cost you to transfer $100,000 between international accounts in traditional banks?
You might be paying some crazy fees which are not present in blockchain technology.
Blockchain offers the cheapest operating fees since it has no intermediaries.
Hence, the cost of paying for such services are also removed from the entire process.
Furthermore, maintenance fee which is present in storing paper files and documents becomes absent.
12. Blockchain Technology Provides High Volatility:
One of the major benefits of blockchain technology is its volatile nature.
Unlike other industries like real estate, production and agriculture, blockchain is volatile.
For instance, If you happen to be a cryptocurrency trader who took a wrong trade, you can easily jump out.
Oh yes you can, but you can’t do that in investments like the real estate sector.
In real estate, when you make a mistake you’ve no option but to stay in to correct it or live with it.
Furthermore, the ease of swapping from one cryptocurrency to another makes it completely volatile.
Hence, making it a welcome ground for newbie traders and investors.
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13. Blockchain Technology Has Become A Reliable Source and Store Of Wealth:
With the introduction of blockchain technology, cryptocurrencies are now becoming a good source of wealth creation.
For instance, Bitcoin was less than a dollar in its early launch days in 2009.
However, today it has become a trillion dollar asset with 1 Bitcoin sitting over $60,000 market price as of October 27th 2021.
Therefore, What will likely be the fate of cryptocurrencies in 2022 and several years ahead?
Also, blockchain technology has presented the privilege to store huge amount of wealth without the presence of a traditional bank.
It’s high security system also makes it completely unique and safe to store assets.
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