Since the emergence of Bitcoin in 2009 the way we think about money and investments has changed. But what makes Bitcoin a completely disruptive financial innovation?
Blockchain, the technology that is based on a blockchain, which is a distributed database that stores a record of all transactions that have taken place on the network, where each transaction is verified and added to the blockchain in a secure and transparent way, meaning that it is almost impossible to alter or falsify recorded transactions.
Before Bitcoin, this was not possible.
Basically, central banks and financial institutions controlled 100% of both local and international digital transactions.
Now, this is no longer entirely the case.
Since its inception, blockchain technology has evolved and has been applied to a wide variety of fields, including finance, voting, asset ownership and digital identity. Although bitcoin was the first and most well-known use of blockchain technology, today there are many other cryptocurrencies and applications of blockchain technology being used around the world.
In addition, blockchain technology is also being used in the smart contract industry, which are computer programs that are automatically executed when certain predefined conditions are met. Smart contracts can be used to automate a wide variety of processes and transactions, which can make them more efficient and secure.
In summary, blockchain technology is a relatively new technology that has revolutionized the way transactions are conducted and data is exchanged. As it continues to evolve, we are likely to see more applications of blockchain technology in a wide variety of fields.
Here are 5 reasons why blockchain technology is trusted:
1. Decentralization: One of the main reasons many people trust blockchain technology is because it is a decentralized network, meaning there is no central entity that controls or has authority over it. This means it is less prone to being manipulated or controlled by outside interests and provides greater transparency and trust.
2 Security: Blockchain technology uses advanced cryptography to ensure that transactions are secure and cannot be tampered with. Each transaction is verified and added to the blockchain in a secure and transparent manner, which means that it is almost impossible to alter or falsify recorded transactions.
3. Transparency: As mentioned above, blockchain technology is a transparent network, which means that all transactions are publicly recorded and visible to all network users. This provides greater transparency and trust in the system.
4. Efficiency: blockchain technology can make many processes and transactions more efficient by automating them and eliminating the need for intermediaries. This can reduce costs and speed up processes, which can improve trust in the system.
5. Scalability: As blockchain technology continues to evolve, solutions are being developed to make the network more scalable and capable of handling a larger number of transactions. This can provide greater confidence in the ability of blockchain technology to handle a wide variety of uses and applications.
What about you, are you already protecting your wealth with blockchain technology?
