What is Blockchain Technology and its applications?

CryptoSmartlife Research Team
Nov 08 2022, 4 mins read
For the last decade, everyone has been talking about Blockchain and the insane utility it brings to Financial and Data Security related applications. Blockchain has made a long-lasting impact on the world with its disruptive technological modules and therefore various big players from across industries like Supply Chain, Finance, Healthcare, and Agriculture are exploring the relevant use cases of Blockchain in their respective industries. 

One of the highly discussed applications of Blockchain is in the finance and Digital Assets domain, especially crypto investing via the best apps to buy cryptocurrency in India. In 2009 Satoshi Nakamoto published a whitepaper called A peer-to-peer electronic cash system - Bitcoin, which was based on the Blockchain itself. Since then, thousands of cryptocurrencies have been created and the domain has matured to an extent that many crypto investing apps or crypto trading apps have or are planning to integrate cryptocurrencies into their business. 

But, What is Blockchain & How does it work?

To simply put it, Blockchain is a distributed ledger to record important transactions in a way that is difficult or impossible to change, hack or cheat the system. Blockchain supports append-only operations so that Data or Transactions recorded on Blockchain are tamper-proof and immutable. In a Blockchain-based system, transactions are grouped together and stored in a Block for verification, which can be achieved by Miners or Validators. Once a block is mined, it will be added to the existing chain of blocks, hence the name Blockchain. Blockchains are best known for their crucial role in maintaining a secure and decentralized record of transactions in various cryptocurrency exchange platforms in India and across such as Bitcoin and Ethereum. The blockchain guarantees the fidelity and security of recorded data and generates trust without the need for a trusted third party.

Blockchain uses cryptographic techniques to secure data in any cryptocurrency exchange platform. It uses the combination of Public - Private Key, Digital Signatures & Mining to verify and secure the transactions. Besides this, all the blocks in Blockchains are connected to each other by Hash value, which makes Blockchains temer-proof. Generally speaking, any application or protocol developed on Blockchain is open-source. This simply means that everyone can see, use, and alter the code in order to come up with their own unique solution. 

Application of Blockchain Technology In Various Domains

Apart from Cryptocurrencies and Digital assets, Blockchain when amalgamated with cryptographically secured records, solves multiple problems. Here are some of the issues that blockchain technology primarily overcomes in today’s digital landscape.

Supply Chains & Blockchain

Blockchain-based platforms can be used to establish trust among various stakeholders and track provenance information, and ownership of custody, and bring transparency to the entire supply chain lifecycle. 

Health Care & Blockchain

Medical records of every patient can be securely stored on Blockchain, which can further be utilized by insurance companies to verify opted medical services.

Digital Identity on Blockchain

Identity is integral to a functioning society and economy. Existing identity management systems are inefficient, less secure, and complex in nature, and can be replaced by Blockchain-based systems.

Decentralized Finance on Blockchain

Decentralized Finance or DeFi, is a newly developed sector by leveraging Blockchain Technology. Unlike traditional financial institutions, DeFi removes middlemen from the lending and borrowing process with the help of Blockchain. 

Blockchain’s capability as a decentralized record-keeping system is almost limitless. There are a few common characteristics that Blockchain based system would introduce in the above-listed use cases

  • A decentralized system that is difficult to temper with
  • Cheaper solution and No need for third-party verification
  • Autonomous, Smart Contract based authentication process that is more accurate
  • The overall system and associated transactions are faster and more secure

How to Invest in Blockchain Technology?

As it is evident from this Blog that Blockchain is the underlying technology for Cryptocurrencies, that fuels crypto transactions. Ergo, growth for Blockchain and Cryptocurrencies go hand in hand. There are several ways an individual can invest in Blockchain technology but typically the simplest and easiest way could be through investing in Cryptocurrency. 

There are more than 21,000+ cryptocurrencies and tokens available according to CoinmarketCap, but Bitcoin is the largest among all. It is difficult to analyze 21,000+ cryptocurrencies before making any sound investment decision and on top of that, if you are new to crypto, many crypto jargons will confuse you to death. But don’t worry, there is a smarter way, where best apps to buy cryptocurrency like CryptoSmartlife can help you with crypto investing in segments of Blockchain Technology by offering AI-based smart crypto thematic baskets, such as Blue Chip, Metaverse, NFT, Defi, and a lot more. Another but little trickier way to invest in blockchain technology could be via investing in startups built on blockchain technology.

Although we just skimmed through the potential market size of blockchain applications in this article, the career potential in this domain is growing exponentially.

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