The IT world is currently dominated and controlled by major companies like Google, Amazon, Facebook, Microsoft, Baidu and some more big technology giants. These companies have people, money and power to build product and run them successfully. Because of the power these companies has its very challenging for startups to compete.
These companies has all our data, our day to day activities, likes & dislikes etc. all the data about our self has been stored with them, we are freely giving our data to these companies and indirectly or directly helping to their growth. The data being collected are stored centrally and controlled by these companies. We are at the risk of storing our personal and confidential data in central servers, there are high chances these data will be stolen from malicious hackers.
When it comes to Banking, traditional banking system is so painful and it takes days to transfer money from one country to other and Banks charges high processing fee.
The problem is you can’t Trust these systems, Centralized data without encryption and controlled by one entity.
The solution for the above problem is Blockchain.
Blockchain is an distributed database and decentralized technology.
All the transactions are stored in blocks and data stored in blocks are not controlled and owned by one company rather everyone in the network will have the copy of full data with encryption. A Block gets added to Blockchain network for every valid transaction and all the block are chained.
In the below picture we can see each transaction is stored in a block and the consecutive transactions are linked with previous blocks. Once the block is created no one can modify or delete the blocks.
- Data is stored securely with cryptography encryption.
- Everyone can securely access data and execute transactions.
- No one can modify or delete the data in Blockchain, The blocks are created in such a way it’s very difficult or impossible for someone to fake the data. This immutability of data enables us to trust the system.
- Because of this immutability and chain of blocks, you can track the lifecycle of any product – example you can verify the diamond you buy is that authentic or not.
- Financial transactions can be done between strangers without trust.
- It takes few minutes to make Cross-border payments.
- You can compete with big IT giants. Example – A startup company, Binance, the world’s biggest cryptocurrency exchange’s Q1, 2018 profit of $200 million which is more than Deutsche bank.
- Your data is not shared with unknowns
- Since Blockchain is distributed across multiple nodes\people, there is no single point of failure.
- Blockchain’s transparent nature enables us to trust the system.
- Transactions are processed by anonymous nodes in network against some rule, because of this you can always trust the transaction.
- Cuts out the middleman for any transaction and you can directly execute business with other party.
- You secure your data as no central authority holds your data.
- Individual ownership.
- You can eliminate bank and do direct transactions