How blockchain technology will transform the World?

Blockchain sounds like a way to keep boats anchored, which isn't a bad analogy, considering what the technology purports to do.

Here are some technical terms that describe how blockchain functions, including Markle trees, distributed ledgers, and cryptographic hashes. However, for simplicity’s sake,  a simple analogy that help individuals who are not well-versed in computer science understand blockchain and realize its significance.

 

Imagine that we are a congressman in government who is involved in creating and passing laws. Whenever any single congressman would like to pass a new bill, it must be voted on by every other congressman in order to make it official. Additionally, whenever a new bill is passed, every congressman is alerted and given a list of the new bills that are passed.

 

Now, why is this important? If a congressman wanted to pass a bill himself, he couldn’t. If he added a new law to his own copy of the bills, then it would not be valid; everyone else would have a correct copy of successfully passed bills which would contradict the congressman’s altered version.

 

 

Similarly, Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain

 

The idea is that the blockchain creates a universally verifiable, immutable and public record of all the transactions in the chain. Blockchain is, in effect, a high-tech attempt to answer the question: how can we create enough trust between transacting parties peacefully to exchange things of value? Traditionally, trust has been created via intermediaries such as banks, brokers and, ultimately, governments (and armies). In the case of a distributed (or "decentralised") ledger system, the idea is that the need for a central authority is eliminated, since the system is self-reinforcing and self-policing. Moreover, since the records are kept communally in multiple sites, a distributed ledger is much harder to hack into.

 

 

 

Blockchain also has potential applications far beyond bitcoin and cryptocurrency.

From a business perspective, it’s helpful to think of blockchain technology as a type of next-generation business process improvement software. Collaborative technology, such as blockchain, promises the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.” For this reason, it may offer significantly higher returns for each investment dollar spent than most traditional internal investments.

 

Financial institutions are exploring how they could also use blockchain technology to upend everything from clearing and settlement to insurance.

 

So let us see the transformation will cause by Blockchain

• Sending Money Abroad Will Be Quicker 
• Sending money abroad can take days. At best, this is frustrating; at worst, it could mean friends or family lacking basic necessities or waiting for emergency medical treatment. 
• Dramatically reduce the time and cost of sending money abroad. With participating banks connected through a blockchain network, all the compliance and ID checks are fulfilled automatically and authenticated by cryptographic signatures. Once cleared, transactions are usually settled in just a few seconds, leaving an immutable, transparent record for both banks.  
• Buying A house Will Be Easier And Faster
• The property market is a messy, tedious business. Buying a house can take months of grueling paperwork and costly lawyer fees. In the UK, things are even worse. Your seller can accept your offer but reject it later for a higher bid, a tactic known as gazumping (though, officials are finally starting to regulate it).
•  I’ll Be Easier To Treat Health Problems
• Your medical history helps doctors treat you quickly and effectively, but chances are it’s fragmented across multiple health care providers. Incompatibilities between providers’ systems make transferring records slow, often requiring manual intervention. Without your full medical history, doctors could waste money and time on tests you don’t need or be unable to give you the best treatment
•  You’ll Be Able To Verify That What You Buy Is Genuine
• Whether you’re buying a conflict-free diamond ring, a ticket to see your favorite band or prescription drugs for a health problem, proof of authenticity is vital. Supply chains that manage every step a product goes through before arriving in your hands are incredibly complex, with many intermediaries confusing the journey.
• You’ll Be Able To Earn More Money From Things You Don’t Use
• Big players in the sharing economy like Airbnb and Uber make money doing very little. They generate income from connecting people — not by renting property or driving a fleet of taxis — yet still charge a huge sum for their services.