The underlying technology behind Bitcoin’s protocol is going to change the world in a more violent way than we could imagine. The success of the blockchain that was proposed by Satoshi Nakamoto has ushered in a new world of opportunities that goes beyond just money. In fact, it can change the way we do business altogether.
Block chain’s usefulness in removing the need for third party verification and intermediaries is seriously brainstormed by everyone from law enforcement to financial regulators to the US Senate. In fact, a group of computer scientists believe that the core of Bitcoin is just in its nascent phase and that it could one day revolutionize the way we exchange goods and services globally. Also, it could bring more transparency and discipline to systems, downsizing associated costs and increasing the authenticity.
Blockchain, the secret behind Bitcoin’s huge success is a secure digital account book of final ledger entries that keeps note of the coins across the internet. The blockchain is responsible for recording every single transaction of the currency. The blockchain verifies all transactions mathematically and automatically by the host computers of the currency’s miners all over the world. Anyone holding bitcoins will also have an exact record of the blockchain. This mandatory need removes the possibility of forgery. It also erases the need for trusted third parties. For example, depending upon the blockchain, one doesn’t need third party intermediaries like Visa, Square or PayPal for financial transactions.
The application of the blockchain is now being applied to systems beyond financial transactions through a process called “coloring” bitcoins. It is a process of digitally labeling bitcoins with the information of the transaction. As the labeled coin gets transferred, it gets automatically recorded on the blockchain. The record is then mathematically confirmed in real time by computers.
Coloring has huge potential to transform every transaction in almost all spheres of human activity. For example, take the instance of real estate. In buying real estate a lot of closing costs are incurred, which include taxes for deeds, titles, title insurance, stamps, and other repeated procedures to enlist the sale in multiple record books. With coloring, the costs can be reduced to a fraction of the manual recording. Moreover, it could be done simply, effectively, transparently and instantly. That makes the process much reliable than what we currently have.
The process can be applied to many other fields. For example, stocks can be transferred between investors without having to pay the brokerage charges. The blockchain can be utilized to record the usage patterns of data by users and to pay for the service automatically. In fact, it can be used in almost all activities where verification is necessary.
This definitely has the power to change the way we do business. That is why it is being said that if Bitcoin fails to change the world, the blockchain will.