With the rise of bitcoin and cryptocurrency, there is the need for a digital ledger or recording system that would be impossible to cheat, hack, or tamper—thus, the birth of blockchain technology. Blockchain in the Philippines and other countries are transforming how information is shared even in the healthcare and insurance industries are more than just a finance and fund investment tool than just a finance and fund investment tool.
Its untapped and unexplored opportunities attract more people to it, and in this article, you will be able to learn more, so continue reading.
What is Blockchain?
As it is known, blockchain technology is a duplicated chain of data blocks meant to be distributed to multiple participants. These data are recorded and linked to previous data blocks that create an irreversible and difficult timeline to change whenever a transaction happens.
While the term blockchain is mainly related to bitcoin, which is one of the many cryptocurrencies, they are not the same. It is blockchain technology that powers cryptocurrency transactions in a secure, complex-to-hack way.
Back in 1991, two researchers, namely Stuart Haber and W. Scott Stornetta, proposed time stamping on digital documents to avoid data tampering through private key signatures. Fast forward to 2008 when Satoshi Nakamoto adopted the concept of linked data blocks to create Bitcoin. He entitled his paper “Bitcoin: A Peer-to-Peer Electronic Cash System,” which discussed the use of blockchain tech to enhance digital trust among users.
He then launched his first blockchain of bitcoin in 2009, namely, the Genesis Block—the pioneering piece of cryptocurrency move and the fintech revolution worldwide.
How Blockchain Works
Data, hash, and the previous block hash is what makes up a blockchain. The data, of course, carries the details of the transaction: date, cost, participants, and the like. The hash contains characters unique to it that identify and calculate the content of the data block. Lastly, the previous block’s hash is stamped into the new block to mark its place in the chain. Once this new data block is added to the last chain of blocks, it cannot in any way be changed.
Should there be any attempts to tamper a block, that person cannot tamper with one without tampering with the other data blocks.
Blockchain Applications in Bitcoin and Beyond
The use of blockchain technology has become so popular in bitcoin exchange Philippines and cryptocurrency users worldwide to ensure transparent, efficient, and traceable cryptocurrency trading. Without confirming with a central authority or system to avoid hefty transaction fees, cryptocurrency trade is accessible for many people, unlike most financial institutions.
However, most financial institutions are also exploring the potential use of blockchain technology to avoid consumer banking delays, trade, and lending while increasing the trust of their clients.
Pharmaceutical companies also explore blockchain use in preventing counterfeits and tracing the supply of products for easy recall in a matter of seconds. Blockchain technology is already used for an automated process that increases speed, reduces cost, and prevents fraud among their business and clients in the insurance industry.