The word “crypto” in cryptocurrencies stands for complicated cryptography. Digital currencies and their transactions are created and processed more easily and securely across decentralized systems with the help of cryptography. They are usually developed as codes by teams, with a built-in mechanism for issuance and other controls. Cryptocurrencies are designed in a way to be free from the control and manipulation of the government.
However, cryptocurrency is not the only application of blockchain. According to IBM, a blockchain is a shared and immutable ledger that eases the entire process of tracking assets and recording transactions in a business network. Since the introduction of Bitcoin in 2008, blockchain technology has undergone an evolution, as a result of which, it is now being used by innovators in various fields. Blockchain can be integrated into the infrastructure of various industries, whether medicine or finance. There are many other benefits of blockchain technology because of its distributed and decentralized nature:
Transparency: The greatest characteristic of Blockchain is that its transaction ledger is open to the public for viewing. This helps in adding a layer of accountability in businesses and financial systems. It is the responsibility of each sector to act with integrity towards the growth of the company, its customers, and the community.
Efficiency: The decentralized nature of blockchain also removes the middlemen in many processes. This becomes especially important for fields like payments and real estate. Blockchain is instrumental in facilitating faster transactions in comparison to traditional financial services, by allowing peer-to-peer transfers with a digital currency.
Traceability: A blockchain ledger allows an audit trail of goods and services each time a transaction takes place. This allows better traceability and verification of the authenticity of traded assets, besides improving security and preventing fraud in exchange-related businesses.