As per the recent studies carried out by Markets and Market, “Blockchain is expected to grow considerably in market size, according to them the market size of blockchain which in 2020 is $3.0 billion will reach $39.7 billion by 2025”. The rate of growth for blockchains in these five years is at an impressive 67.3% compounded annually. 

Understanding Blockchain

Blockchain, as the name suggests, is the technology that creates blocks of information, stored in a chain, one after the other. Whenever a new block is created it gets added to the chain, and together all blocks form what is known as a digital ledger. 

Now the question that arises is, what is different about these ledgers, as digital ledgers were also created in the past? Well, the answer to this question is very simple. Blockchain ledgers offer several revolutionary advantages that were missing in traditional approaches. 

Blockchain Ledgers Advantages

  • Decentralized

In blockchain technology data stored on distributed ledgers is stored on different nodes, over the network. This completely eradicates the need to store and process the transaction data by a single third party. This also acts as a safety feature, as data cannot be hacked, since it is distributed over the entire network. There will be no third party controlling the data, making blockchain applications in finance more accessible and cheaper.  

  • Safety

One of the most important advantages of blockchain technology is that it is very secure. The transaction ledger is secured by encryption, allowing access only to the person having the unique key. Features like peer-to-peer and decentralized, also make Blockchain transactions more secure. In all the years, despite the popularity and high prices, the Bitcoin network has never been hacked.        

  • Irreversible

The most significant feature of the Blockchain is that once written data cannot be altered. This feature provides great benefits, especially in day-to-day business transactions. The data stored in blockchain ledgers can be completely trusted. This can also be used in various fields such as the drug development industry, where digital ledgers could be used to record test results. Once recorded, these results cannot be overwritten by anyone in an attempt to present a particular drug in performing better than it did.      

  • Distributed Computer Processing

Where large companies have the capital to deploy large server systems or to hire the system from other organizations for usage, small and medium companies are unable to do so because they don’t have enough finances. This could act as a hindrance or barrier for these organizations from creating new ways to implement IT solutions into current processes. 

In blockchain technology, the processing is distributed to everyone on the network who fulfills the criteria. These organizations are called miners. In distributed processing, the organizations are not required to invest in large new servers or pay for processing power that maybe not be required by them.  

Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.

Photo by TheDigitalArtist on Pixabay