One of the prime reasons why cryptocurrencies have been a roaring success is because of the technology it has based been based upon. Blockchain technology uses the concept of distributed ledger that enables a secure transaction environment.
Putting it simply, blockchain is a transaction ledger that maintains identical copies across each member computer within a network.
Any party is able to both review previous entries and record new ones, although most blockchain networks have complex rules for the addition of new groups of records, “blocks,” to the chain of previous records. The blocks and the contents within them are protected by powerful cryptography, which ensures that previous transactions within the network cannot be either forged or destroyed. In this way, blockchain technology allows a digital currency to maintain a trusted transaction network without relying on a central authority. It is for this reason that digital currencies are thought of as decentralized.
With the advent of technology and increasing sophistication of the blockchain itself, more of its utility is being envisaged. It has been argued that blockchains use in cryptocurrency would become minuscule compared to the role it would play in other fields.
This article will throw some light on its other uses:
Cross Border Payments
Cross border payments especially the ones across international borders have always been an expensive affair. One of the reasons for it being expensive is the presence of respective currencies and its different exchange rates. the transfer process typically requires multiple banks in multiple locations before the intended recipient can actually collect his or her money. There are existing services to help facilitate this process in a faster way, but these tend to be quite expensive.
Blockchain can play the role of being the facilitator between the sender and the recipient. It would not only be able to bring the cost of transactions down but also accelerate the transfer speed.
However, regulations against cryptocurrency are still being pursued as well security concerns have been voiced. The moment these are solved the future looks good.
Smart Contracts
This powerful computer program is able to oversee all aspects of an agreement. When conditions are met, smart contracts can be entirely self-executing and self-enforcing. For proponents of smart contracts, these tools provide a more secure, more automated alternative to traditional contract law, as well as an application that is faster and cheaper than traditional methods.