An Introduction to the Blockchain Technology for the Beginners

Today, technology is increasing the success rate more recently at an extremely fast pace. One of the latest wins in this direction is the evolution of Blockchain technology. New technology has greatly influenced the financial sector. In fact, it was originally developed for Bitcoin – digital currency. But now, he found the application in a number of other ways too.

Coming this far might be easy. But, people don’t know what the Blockchain is?

Distributed database

Imagine an electronic spreadsheet, which was copied several times across computer networks. Now, imagine computer networks are smartly designed so that they regularly update their own spreadsheets. This is a broad overview of the Blockchain. Blockchain stores information as a shared database. In addition, this database will be reconciled continuously.

This approach has its own benefits. It does not allow the database to be stored in one location. The notes in it have original public attributes and can be verified very easily. Because there is no centralized version of the record, unauthorized users do not have the means to manipulate and destroy data. The distributed data base Blockchain is simultaneously hosted by millions of computers, making data easily accessible to almost everyone on the virtual web.

To make the concept or technology clearer, it’s a good idea to discuss the analogy of Google Docs.

Google Docs analogy for the Blockchain

After the emergence of eMail, the conventional way of sharing documents was to send Microsoft Word documents as attachments to recipients or recipients. The recipient will take their sweet time to pass it, before they send back the revised copy. In this approach, we need to wait until we receive a copy again to see the changes made to the document. This happens because the sender is locked from making a correction until the recipient is finished with editing and sending the document back. Contemporary databases do not allow two owners to access the same record at the same time. This is how banks maintain the balance of their clients or account holders.

In contrast to established practices, Google docs allow both parties to access the same document simultaneously. In addition, it is also possible to view one version of the document simultaneously. Just like a shared ledger, Google Docs also acts as a shared document. Distributed parts only become relevant when sharing involves many users. Blockchain technology, however, is an extension of this concept. However, it is important to point out here that the Blockchain is not intended to share documents. On the contrary, this is only an analogy, which will help to have a clear idea of ‚Äč‚Äčthis latest technology.

Blockchain features that stand out

The Blockchain stores blocks of information across the network, which are identical. Based on this feature:

Data or information cannot be controlled by any single entity.
There is no single failure point too.
Data is stored on public networks, which ensures absolute transparency throughout the procedure.
The data stored in it cannot be damaged.

Demand for Blockchain developers

As stated earlier, Blockchain technology has a very high application in the world of finance and banking. According to the World Bank, more than US $ 430 billion of remittances were sent only in 2015. Thus, Blockchain developers have significant demand in the market.

Blockchain removes rewards from middlemen in such monetary transactions. It was a discovery of a GUI (Graphical User Interface), which facilitated lay people to access computers in the form of desktops. Similarly, wallet applications are the most common GUI for Blockchain technology. Users use wallets to buy items they want using Bitcoin or other digital currencies.

Bringing Scientific Rigor to Medical Research Using Blockchain Technology

Blockchain technology that is applied to medical research can increase trust in science by making notes on research findings that are unchanging and time-changing. The Blockchain technology, discovered by Satoshi Nakamoto in 2008, ensures that transactions carried out in ledgers cannot be changed over time. As applied to bitcoin cryptocurrency (BTC), the result is a monetary system which, cannot be manipulated by centralized governments because it creates permanent and accurate records of all transactions. The strength of the system comes from the use of a distributed database compared to the current monetary system which requires a centralized database such as those used by credit card companies and banks. Applying this same technology to medical research increases trust in results because just like bitcoin, transactions (scientific data collected) are permanently archived in ways that cannot be changed and cannot be changed.

Exchange of money, like doing medical research, requires a high level of trust. Money in the past has generated this trust through government regulations and central bank supervision. Medical research in the past has sought to create a high level of trust through peer reviews conducted by leading medical journals such as the New England Journal of Medicine. Both methods generate trust depending on trusted central authorities, whether government or medical journals. As such, both of these methods are very vulnerable to fraud through corruption or innocent mistakes from centralized authorities. This has led to widespread mistrust in medical research. Bitcoin operates differently, because it establishes methods for relying on distributed networks based on mathematical algorithms, rather than centralized authority that is vulnerable to human error.

Financial transactions may require the highest level of trust. People need to know that all transactions recorded in the ledger are fully accurate and truly resistant to change in the future. Because blockchain technology as implemented in bitcoin has gained this trust, bitcoin has become a widely used store of value with a market capitalization of more than $ 100 billion USD. When other cryptocurrency is considered, total trust in the blockchain-based financial system exceeds $ 250 billion USD. Likewise, health care professionals must be able to believe that data obtained from medical research is truly accurate and completely irreversible. Doctors need to know that medical research doesn’t copy or cheat in any way. The Blockchain technology has made bitcoin a trusted global currency. In the same way, blockchain-based medical research will greatly increase trust in results and as a result, improve medical care.

Using Blockchain Technology Companies for Trade Finance

One of the most profitable industries for blockchain technology is financial trading. Many of the largest banks in the world spend time on research and development.

Thanks to a consortium of 71 global financial leaders, R3CEV, much has been revealed about the potential use of blockchain technology.

Since 2016, R3 has run several trials on the market to complement their research. They will continue to improve this strategy until they are ready to fully enter the market.

So, what are their findings about potential uses? This is the future of financial trade with the blockchain technology company.

Monitor Real-Time Conditions and Conditions

One member of R3, CBA, is a leading contributor to blockchain technology research. Currently, they are undergoing 3 different projects to analyze blockchain usage.

They conducted trials with exporters who sent cotton. The humidity monitor is placed inside the tube, which is connected to IoT and GPS.

This monitor allows consumers to track their shipments with real-time status. Also, they can evaluate the condition of their products while traveling.

Other national blockchain technology companies run pilots, similar to this study. In Singapore, Hellosent is conducting a similar test. However, they are studying French wine imports.

Eliminate Unpaid Settlement

A growing problem for grain farmers is financial loss due to trade bankruptcy. An estimated $ 50 million was lost in 2014 due to this activity.

It takes approximately 4-6 weeks for a farmer to receive payment for their shipment. At that time, conflicts often arise between farmers and buyers over payment complications (failing to pay the appropriate amount, late payments, etc.).

Australian pilot companies, Full Profiles, have handled their own problems.

Their blockchain platform allows farmers to now receive automatic payments after shipping grain. This will significantly reduce the risk of disputes between farmers and buyers.

After the Complete Profile application is fully functional in domestic settings, they will develop on external trade.

Digitize

The use of blockchain technology can also be useful to reduce financial losses and risks. After further development, it will be able to digitize sales and legal arrangements.

Trade finance is a heavy industry, which is very dependent on settlements and contracts. At present, most of these agreements are handled in an ancient way: paper copies.

Blockchain technology will eliminate the need for this paper-based system. This ultimately reduces the risk of financial loss because documents are often lost, mishandled, or tarnished.

Electronic documentation can be tracked more efficiently. Also, this cuts the need for a third party verification system.

Interested in Learning More About the Blockchain Technology Company?

Blockchain technology creates transparency in financial trading between buyers and sellers. From the moment the order is made to payment, the blockchain is able to simplify the trading process.

Do you want to enter the world of international trade? You are in the right place. It’s nice to know your thoughts and comments.

At Adam Smith Associates Pvt. Ltd., we help our clients through all their trade finance needs. Contact us to learn how we can help you!