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2022/01/25

How Blockchain Will Transform Our Economy

By Rupesh Ghimire

The blockchain is simply a database that enables the documentation of digital recording,  facilitates authentication, and ensures the irreversibility of data. So why is this technology, which at best plays a marginal role for today's economy and society, so exciting? In order to focus one's ideas, it is easy to neglect their current status and predictions of the commercial viability of individual applications. The fact of information being easily copied and the loss of trust which results in the economic relationship migrating to cyberspace, blockchain promises to solve two of the fundamental problems of the Internet today. 

In the past, it had been considered impossible to make a distinction between an original and a duplicate in the cyber economy. The marginal cost in the generation of digital assets tended towards zero, enabling a copy of an existing asset to be produced at practically zero costs. It was even seen as part of the digital economy itself. Digital assets are highly portable and are protected from wear and tear, and can be very easily manufactured in large quantities. However, the easy copying of the items causes significant problems for producers because the status of an asset as an 'original' cannot be protected in any way. The problem is exacerbated by the fact that a "copy" of the same amount is generally considered fraud in digital currencies. By introducing this scarcity in the digital world, Blockchain solves the problem. Identical amounts can never be repaid by a global computer network as they are checked. Due to its mechanism, each payment is different.

Changes that Blockchain is bringing into the world

Blockchain is a type of universal logbook or directory, as described at the start, for transactions of all kinds. This technology aims to, first of all, formalize all economic relations. Secondly, it aims at reducing any economic exchange to the documented substratum and subjecting it to the logbook rules. That means that blockchain is a ubiquitous technology that guarantees complete transparency of transactions but requires strictly regulated processes for economic transactions.

Ubiquity: the technology blockchain is neutral records "content." Bitcoins and other cryptocurrencies are one application among many. Blockchain is a universal structured space for Value and valuable interactions representation like Wikipedia.

Transparency: it ensures optimum transparency thanks to the ability of the blockchain to register business transactions in an imperfect manner. The individual computers involved in a blockchain can verify every transaction. That involves the end of the grey areas, which are impervious to the blockchain, in contrast to cash, whose tortuous roads are ideal for money washing.

Rule-based systems: while Bitcoin was in fact only the first application of the blockchain, its ambition to ensure full economic transactions in all fields is evident from smart contracts. Blockchain technology itself certainly does not lay down any rules. It does, however, permit the digital presentation of rules in the form of "smart contracts" and the automatic enforcement of any contracting party's rights.

Industries blockchain will be affecting and the economic impact associated with it

Since all these blocks are encrypted, when a single block is altered, other blocks down the chain will essentially be altered, so it is easy to detect who has altered the information. The data in the network blockchain is also replicated on all network computers, making verifying the data within each block easy. We have a transparent, shared database with blockchain technology that is protected against deletion, manipulation, and review – a database in which contracts can be integrated. There are endless opportunities to build with this technology! Blockchain is supposed to disrupt multiple industries, alter our social and economic systems, and essentially transform our business practices. These cases show you how our business can transform our economy and how we are doing business.

Transparency in bookkeeping

Blockchain can transform politics and finance as we know them by using a bookkeeping platform. The technology is both incorruptible and fully transparent when used as a financial ledger. It is the ideal tool for ending corruption in finances, politicians, and institutions. Blockchain technology can also reduce account errors payable and receivable through automated encryption and verification. In the blockchain, participants are identified with each transaction, the time and date are checked and related information is secured. Can the necessity of an accountant be reduced? Perhaps not all for some instances. The use of blockchain technology and automation of processes is an important feature for accountants. It could also enable accountants to monitor things in real-time – facilitating their ability to be informed about changes or problems.

Smart Contracts 

How about not needing a degree in fancy law to perform a contract? Blockchain eliminates those needs. It eliminates the need for a middle man to carry out certain contracts and to automate goods and services exchanged. Not only do smart contracts hold every party liable, but they can also automate any payments related to the contract because they are available under the ledger. After receiving the deliverables – both parties fulfill the conclusion of the contract. Remember, this doesn't mean lawyers are outdated. Some agreements and complex agreements may still be required for the drafting and execution of professional legal information. However, blockchain could help two parties to work directly and simply for simpler agreements.

Project Management 

Thinking about the idea of smart contracts, blockchain could be a great tool for the management of projects. A project plan can be carried out by means of a series of intelligent contracts to complete the project. Certainly, it would be easier to handle. It could also improve management reporting and basically eliminate the need for calculating project management analytics, such as complete percentage and value management.

Prevention of Voter Fraud

Do you know all those questions and discussions about voting fraud that we've had over the years? All this could be eliminated through Blockchain technology by providing an unhackable electronic voting system.

Healthcare

Believe it or not, there is no record of your whole lifetime reporting your health. Sure, you are covered by health records. But they're not complete and they're not all there in one place. But what if they did? What if they did? Can you imagine how effective and powerful health care can be if your healthcare professionals can track over the years all of your vital signs, all the medicines you have taken, all diseases, every procedure, and every appointment with a doctor? It would be much easier to coordinate care with blockchain.

Conclusion

Blockchain has much to offer, but it also has a long way to go before it gets fully integrated. The research on the use of technology by Harvard Business Review indicates that two dimensions affect the way basic technology develops and its business use cases.

  • Novelty. How the public needs to understand their use cases and the problems they resolve.
  • Complexity. How parties must work together to make technology worthwhile. You are likely to have some impact on your business by blockchain.

Ripple, Bitcoin, Ether, and Cryptocurrency are most talked about now. While everybody is in a hurry to find out how they can invest in cryptocurrency and earn money, businessmen and developers, and businesses are plunging into the options and finding use-cases of blockchain technology in several industries.