What is Blockchain?

Blockchain technology is mainly used in Bitcoin and its first usage was since the establishment of the digital currency. In the simplest word, Blockchain Technology is an open decentralized online database. Anyone could access the database with the internet connection anywhere in the world. There are differences between traditional database used in financial institutions and government with Blockchain Technology. Blockchain does not own by anyone, yes not even to the Bitcoin developer, Satoshi Nakamoto even though the owner behind the pseudonym was the first to implement a simple form of blockchain technology to run Bitcoin. With blockchain technology, somehow it will make the criminal activity such as illegal documents forging and transaction nearly impossible.

Blockchain technology used to store information permanently in the decentralized database across the network that could be accessed with internet connection in personal computers or even your mobile gadget. The information stored not only decentralized but it can be distributed too. Millions of users are now using blockchain technology and that what makes it difficult to be taken down or be corrupted. Blockchain Technology users kept their documents from their personal computers in the database and stacks of records submitted by others. Records kept in Blockchain technology referred as “blocks”. Each “blocks” stored in the database will have its own timestamp and link which synchronize with the previous block and form a chronological order and enable the user to view and add it anytime but can’t change the information that has been kept. The use of math order cryptography, explains why do the users or someone else don’t have the access to make the alteration to the documents in the database.

For instance, a hospital has decided to adopt Blockchain Technology in making sure their medical record run systematically. Every record saved by the hospital will be saved as a block with the label stating, the date and the time when the record has been entered in blockchain technology database. Medical history indeed a very crucial and confidential for treatment, diagnosis purposes, and neither doctor or patient could have altered records that have been made. With the blockchain technology used by the hospital, doctors will have their own private keys that enabled them to add new records and the same access will the patient have so they can also access the records as well keeping their health on track. By implementing the technology, medical records will be in a more secure environment which could avoid any unwanted incident such as document loss and forging.

Since the implementation, numerous of financial institution began to embrace the blockchain technology to enhance their database technology. A significant increase in blockchain patent application has been revealed by a Korean Intellectual Property Office, which shows over 1200 Blockchain patent application filed in 2017 compared to only 594 in 2016. Giants Financial institution such as Bank of America, Mastercard, JP Morgan and many more decided to spend money to save money by using Blockchain Technology.

Although Blockchain technology seems beneficial towards financial institution it has the ability to reduce potential customer’s entry into the banking industry. And if the banking institution couldn’t maintain their stable state, it means they will be at risk. Blockchain Technology undeniably more beneficial towards the consumer. Its nature that offered lower cost of services, more security, and better transaction experience could make it more appealing than the traditional banking institution. In any case of natural disaster, for example, blockchain technology became most beneficial if the important documents stored in a block than a typical document keeping that could be destroyed, or even erased.

The blockchain technology indeed seems promising and could enhance any institution to have a systematic and efficient database in record keeping. Although it is a decentralized database, any forging documents could be avoided as every transaction will be recorded and can’t be altered which are also accessible to anyone.