In a previous article, we talked about Bitcoin. Now, let’s talk about the technology that powers it: Blockchain Technology.
What is Blockchain?
To put it simply, a blockchain is just a list of transactions. These transactions are “listed” in a block, and each block is connected or “chained” to one another—hence the term: Block - Chain.
Several institutions, such as banks and governments, all keep records of transactions which they list in a ledger. Traditional ledgers are privately controlled by a central authority, usually by the institutions themselves, who records, updates, manages, and maintains the list of transactions—the ledger.
Blockchains are decentralized ledgers. Unlike traditional ledgers, the management of a Blockchain is not exclusive to any single party or institution. Blockchains are publicly accessible and maintained, which allow individuals or companies to add and verify their transactions without a central authority. Instead of relying on a few trusted third parties, transactions on a blockchain are secured by technology.
The invention of Blockchain Technology is often hailed as revolutionary, often being compared to the impact the internet has had to our society. There’s limitless potential to how Blockchain Technology can help improve our processes. Here are some examples:
Blockchain in Finance
Blockchain makes it easy to facilitate safe and efficient transactions, which makes it ideal for several financial applications. Cryptocurrencies are one of the many applications of blockchain technology in the world of finance. Digitizing assets are another application, which we were able to implement through the BONDS.PH app in partnership with Unionbank. The blockchain-powered BONDS.PH app makes it easier for Filipinos to invest in risk-free treasury bonds.
Blockchain in Elections
Several countries, such as South Korea and some states in the U.S., have started initiatives to implement blockchain voting in their elections. Blockchain technology can help secure sensitive voter information and prevent manipulations in the votes. By making vote results fully publicly accessible, distributed database technology can help bring full transparency to elections.
Blockchain in Health Care
One of the applications of blockchain technology in the healthcare industry is in securing patient data. The ability of blockchain technology to keep an incorruptible, encrypted, decentralized, log of sensitive medical data can be easily integrated into an industry where ensuring security is a primary concern.
These are only few of the many more exciting applications of this revolutionary technology!
In the next article, we'll talk more about one of the applications of Blockchain in Finance: Cryptocurrency.