Financial institutions have funded countless industries in the last 30 years; they think what revolutionary technology can do in this long-running system.
To counteract changes, many banks have acted proactively by forming Research & Development, testing centres and establishing partnerships with blockchain developers to understand the potential of this technology.
Financial institutions became the first to deepen, but academics, government, and consulting companies have also studied this technology.
All of these efforts have not been mined by what is done by entrepreneurs and developers.
whether looking for other ways to use the blockchain bitcoin or ethereum or creating a new blockchain.
This has been running for three years and the results are starting to appear. Although it’s not too clear in all fields, below is what we know blockchain can do:
Form a digital identity
For identity components, blockchain technology is done through the use of cryptographic keys.
Combining a public key and private key will form a strong digital identity reference based on ownership.
the public key is how you are identified in the public (such as an e-mail address), while a private key is how you approve in digital interactions. In the blockchain revolution, criticism becomes a very important part of a force
Acting as a record system
The blockchain is an innovation in information registration and distribution.
Which in this case can be sampled to record static data (registration) or dynamic data (transactions), making it an evolution in the world of recording systems.
In the case of registration, data can be stored in blockchain in three ways:
1 Data is not encrypted - can be read by each blockchain and is very transparent 2 Encrypted data - can be read by blockchain with a decryption key. The key provides access to data on the blockchain and can find out who added the data. 3 Hash data - can be presented close to the function that makes it show data not tampered with.
Generally, blockchain hashes are done in combination with original data stored outside the chain. For example, digital fingerprints are often hashed on the blockchain while the main part of the information (finger) is stored offline.
Such a joint record system can change the way different organizations work together.
As large as an operational cost at this time by using a personal server, for transactions involving processes, procedures and cross-checking records can be replaced with blockchain technology
The features of the blockchain database have their own history. Because of this, they are known as immutable. In other words, it is very difficult to change entries in the database because it requires changes to all data that comes after it, at each node.
In this case, blockchain is more of a recording system than a database.
Serves as a platform
Cryptocurrency is the first platform developed using blockchain technology. Today, they are changing the idea of a market cryptocurrency platform into a platform for smart contracts.
The terms “smart contract” can be divided into several categories:
There was a smart contract like a vending machine in the 1990s made by Nick Szabo.
This is caused when the machine works after receiving an external input (cryptocurrency) or sending a signal that triggers the blockchain activity.
There are also smart legal contracts or Ricardian contracts.
This application is based on the idea that a contract is a meeting of various thoughts, which results in anything that is approved by the parties concerned.
Therefore, a contract can be in the form of a combination of verbal agreement, written approval, and also some useful aspects of blockchain such as timestamp, token, inspection, document coordination, or business logic.
There are also several smart ethereum contracts
This program controls the blockchain assets, executing interactions made on the ethereum blockchain. Ethereum is a platform for smart contract codes.
Blockchain technology is the technology of the future that can replace banking technology currently in use, developers of bitcoin technology are increasingly competing to make this technology better and become the world’s financial choice