Blockchain works on a simple principle– Why do we need Blockchain?

Blockchain works on a simple principle
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Blockchain technology has emerged as the new darling of the twenty-first century. In 2009, Satoshi created Bitcoin, the world’s first decentralized currency, which replaced the centralized server signature mechanism of digital cash with a consensus-based proof of work. It addressed the issue of double-spending and improved the Chains concept by introducing a decentralized payment system based on revolutionary Blockchains.

Blockchain Principles That Everyone Should Understand:

  • Decentralization

Blockchain is a peer-to-peer network in which no single participant (user) controls the transaction; power is distributed among all participants in this network, which means that no single stakeholder can hack, manipulate, close, or shut down the chain of blocks. Because of its distributed (Decentralized) mechanism, this blockchain network is free of hacks and fraud.

  • Sincerity

In a blockchain-powered network, all participants have the authority to make decisions; trust in the system is not forced here, but is entirely guided by user intuition. The tight integrity is visible in the way each user is incentivized for their efforts, as well as in the way this entire P2P network operates.

Security: Because blockchain is a distributed network, there is no single point of failure, and no single person can act recklessly and disrupt the entire chain of the network. Any damage caused by a single password hack will be limited to that single person. The blockchain PKI (Public Key Infrastructure) encryption mechanism ensures that your network transactions are highly secure unless you are a fool and share your private key, for which no technology has a solution.

Why we need blockchain?

We need blockchain for two sectors financial as well as non-financial.

Financial sector 

The banking and financial sectors, which have been disrupting services ranging from operations to retail, are an excellent use case for blockchain-based technology.

Several blockchain-based experiments are taking place in the financial services industry to improve cross-border remittances, post-trade settlements, and trade finance.

The strength of AI in collaboration with blockchain has shaped the banking and finance landscape, creating opportunities and challenges for customers, service providers, and regulators. Using Blockchain as an economic model, Fintech service providers will develop innovative new solutions to meet consumer demands for safety, trust, better public services, and privacy, while also transforming the competitive landscape.

Non financial sector 

Healthcare

Following the BFSI sector, the healthcare sector has been the most progressive in adopting blockchain to build a future technology in which all stakeholders such as doctors, patients, hospitals, pharmacists, and testing labs will all communicate through this decentralized mechanism to maintain healthcare records that will be more secure, reliable, and authentic.

  • Patients’ medical records should be kept in a secure location.
  • Will establish a strong communication network among all healthcare beneficiaries.
  • Pharma companies’ supply chain records must be reliable and authentic.
  • Doctors will have access to precise and accurate patient information, which will allow them to better serve their patients.

By incorporating insurance companies into the blockchain-powered healthcare network, you can streamline the claim settlement process.

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