The blockchain is an emerging technology, which, recently by World Economic Forum was called as a revolutionary force for the world. As much as the technology is deemed to be transforming the way businesses operate, it is confusing the very idea of integrating a technology into businesses for many people.
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Blockchain, where is an innovative way of storing and moving the data, it can be called a record book for the understanding of a common man. The blockchain technology enables the process of storing the data related to the financial transaction to be done in a robust way. However, the practice of storage of data is not limited to just finances, it has a wide range of businesses being served by it.
The blockchain technology is now becoming a hot trend, its transforming the way transactions are made online. But, the tragedy of the situation is that the functions of technology are not completely comprehended by many in the world, and when something is understood by a common man, the chances of it getting explored by every segment of society are automatically reduced. Therefore, team Pac Block understanding the ardour a reader has to undertake while studying about blockchain is trying to find a solution by explaining the process in the easiest manner possible.
The blockchain which seems like a complicated process is just a digital method of keeping records saved and make them easy to view and access. In a blockchain, there is no central authority that keeps track of transaction on all stages that are from the beginning to the end.
The catch of blockchain is that it’s a decentralized system and doesn’t require a state bank or a central bank to regulate the transactions taking place. Therefore, the technology of blockchain is designed in a manner where it’s going to replace the banks. It should be noted that banks are centralized entities while blockchain is a completely decentralized system, there is no need for a middleman in the blockchain whereas, the core idea of banks is to play the role of an intermediary body. Any information that’s put on blockchain is irreversible, and cannot be altered or changed, on the other hand, banks have an opposite rule. The blockchain is a more secure system, the banking system is prone to theft. Because of the irreversibility of the data, information saved on the blockchain is saved in a permanent ledger, however, the data in the banks can be deleted. In blockchain, there is no service fee charged but with banks, there is a high amount charged in the name of service charge. The blockchain gives autonomy to participants while the banks are centrally controlled by a state bank.
As we discuss how blockchain is different from the bank and define the entire process of the blockchain, the readers are often left with an impression that the uses of this technology are limited to financial transactions only, whereas that’s not the case. The uses of the blockchain technology spread far away from the small orbit of saving the money trail. It’s used in various industries like Supply Chain Management, Insurance, Retail, Private Transport, Voting and also in Energy. The uses of blockchain are numerous and the technology is going to transform the operations of several industries in the business.
The further explanation of the blockchain is made with the supporting image that illustrates the entire process of how the technology works.
As the process begins, a stream to record the transaction is created on the blockchain, then the recorded information is sent on to all the participant members on the network. As members verify the information, the data is validated. What makes the system of blockchain incorruptible and robust is the very fact that no activity can take place here without the permission of all network members. In case there is an objection, the transaction gets cancelled and the information has to be put again on a new stream to be re-verified by the users.