Essay on Blockchain Technology
In today’s developing economy, blockchain technology is widely used by the public users mostly investors for investing their amount for generating high interest or profit. The main purpose of this paper is to understand more about the blockchain technology and reason behind its major progress milestones.
Blockchain technology plays a significant role in managing database which records all the transactions that are shared or executed by the participating parties (Pilkington, 2016). Bitcoin is a suitable example which is related to blockchain technology.
In this paper, different aspects will be studied regarding the blockchain technology such as key contributors, precursor circumstances and so on. This paper will also outline the points related to when technology was developed, how it becomes public locally or domain. At the same time, this paper will also highlight on the expectation in respect to a future timeline of the blockchain technology.
The blockchain technology is an innovative and essential technology which helps in managing or recording the public transaction digitally or through decentralized ledger. This technology was developed in the year 2008 in which Bitcoin was implemented as a digital asset in the year 2009.
The blockchain technology is a sequence or nodes of hash chained records which add blocks to a blockchain through financial transaction. The blockchain technology is closely associated with the Bitcoin and other cryptocurrencies and this technology is treated as a tip of the iceberg.
This blockchain technology is not just about bitcoin transaction but also applicable to any kind of digital asset transaction related to online exchange (Underwood, 2016).
This digital or decentralized transaction are recorded and processed without any assistance of the third party, which is usually found in a bank. In addition to this, Peter and Moser (2017) also defined that blockchain is an openly distributed ledger that helps in recording the two different parties digital transactions efficiently and effectively.
For creating the blockchain technology, there is a need to acquire the capability and capacity by developing a technological knowledge and new updated technological requirement in the economy worldwide. At the same time, Crosby et al. (2016) also stated that blockchain technology provides the benefits in developing business networks, wealth and market in an effective manner.
Key contributors
Satoshi Nakamoto is stated as key contributor for the development of this innovative blockchain technology. The blockchain technology is not owned by anyone in the world as this technology is adopted by different organizations.
The main purpose of development of blockchain technology is to make the effective payment process i.e., a decentralized ledger system which maintains all records of financial transactions.
The Blockchain technology has become mainstreams after many decades as this technology is less known or accepted by the public or investors for doing the exchange of digital asset transaction online.
This technology works for creating transparency as well as help in verifying the transaction process in order to avoid the fraud or hacking. On the other hand, Trautman (2016) also elaborated that there are investors who still wary about this technology becoming a mainstream as a majority of investors or public do not understand that it can act as a medium of exchange.
But at the same time, Cachin (2016)also stated that Block chain technology has developed over the few decades into one of the biggest ground breaking technologies that create its impact on the financial industries to manufacturing and educational industry.
Precursor circumstances
The shared prosperity has raised the motivation among the different organizations to use the blockchain technology in an efficient manner in order to make the international financial transactions easier and faster.
The visionary approach of Block chain technology is the major sources of motivation (Tian, 2016). However, the block chains tend to consider as a trust worthy and fair technology due to this innovation allows the company to protect their information from any unauthorized access of misleaders.
At the same time, this technology also helps in exchanging a large number of information at a time. Thus, these areas motivate the individual to use the block chain technology.
Other than that, block chain technology allows the faster dealings and settlements of trade as this technology reduces the lengthy process of verification, reconciliation and clearance (Huckle et al., 2016). This step motivates the organizations like financial institutions to incorporate this technology so that it performs the transaction quickly and with less error.
The block chain technology also motivates to the organization due to its high transparency level. Likewise, the ledger technology allows to controlling each information and transactions that users use. Once the transactions are made and block chain data is correct and complete.
Then every member can make a change in a public block chain and this creates the perfect transparent system. Therefore, the transaction recording is done through the use of single public ledger and it reduces the complication of multiple ledgers tend to reduce.
Besides that, block chain technology considers as a visionary approach because it not only limits to the sphere of financial sector but it can be also applied on different sectors such media and entertainment sector, retail and e-commerce sector, automotive sector etc (Zhang and Wen, 2017). Thus, this makes the companies motivated to adopt this technology in its future operations.
Change in society due to blockchain technology
The blockchain technology has transformed the economy and society to a large extent as this technology has raised the attention of existing payment operators to adopt this innovative system for making easier international payment transaction efficiently.
The blockchain technology has created a positive change in the society because this technology promises to resolve the internet issues related to security of financial transaction (Lemieux, 2016). This technology acts as a link for existing technologies and also helps in transferring its characteristics to the digital market globally.
The impact or influence of blockchain technology on the society is high because government of economy worldwide is support this technology to be adopted for managing the digital transaction records between the two parties.
The blockchain technology also provided support to investors to operate their financial transaction process online digitally and also this help in generating the digital currencies sell and purchase efficiently.
For instances, this technology has created positive change in the society because this blockchain technology is considered as legal financial exchange and the public of Japan can safely invest their amount in this purchasing or digital exchange this form of cryptocurrency.
On the other hand, Atzori (2015) also demonstrated that blockchain technology contributed in the society for developing a stable legal system and government as it serves as a regulatory force where it don’t manipulate the rights and obligation associated to it.
The future expectation
In future, Blockchain technology will become one of the leading potential technologies which will be adopted by different organizations as this will provide the security in an unsecured internet where there is high danger of hackers, spam and DDOS.
There are potential opportunities of using the blockchain technology in three different categories such as corporate, commerce and government. This blockchain technology can be implemented in every aspect of the commerce mainly at the time of cross-border trading transactions.
In respect to this, Ross (2017) also stated that in the 21st century, the blockchain technology will play a significant role for the government worldwide. This blockchain technology will support the government in managing and improving the efficiency as this technology will reduce the countless man hours that can be run directly on the digital ledger with the help of smart contract protocol.
Moreover, cooperate also have an investment opportunities when it comes to blockchain technology. This technology will be used for running the organization in an efficient manner as this will reduce the administrative cost and any form of cost delay (Sun et al., 2016).
On the other side, the future expectation from this technology is that there are different organizations mainly banking sector who are focusing to adopt or implement this blockchain technology so that financial transaction become more transparent and attractive.
Mainly Indian banking sector is more focusing towards adopting a block chain technology as it will help them in making the easy digital transaction between the two parties without involving the third party in this transaction process (Lindman et al., 2017).
Moreover, in future, proof-of-work is also expected opportunity for banking industry as it will help in ensuring the validity of the ledger’s transactions and demands as this will assist in solving the new block transaction that is recorded in a digital manner.
However, this blockchain technology is expected to rise in future successfully in next five years as this technology will provide support in making financial transaction more authentic and private.
From the above study, it can be concluded easily that in today’s developing world, blockchain technology is widely used for recording the digital asset exchange transaction among two different parties, there is no existence physically.
While studying, it is identified that blockchain technology has helped in organizing and managing the transactions or contract and that leads to bring the changes in the way of developing trust, generating money and in the social organization too.
In addition, it can be clearly summarized that blockchain technology is creating a high positive impact on the economy in respect to government, commerce and corporate.
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