The blockchain has outgrown its infancy and is already taking a prominent role on the financial market. As cryptocurrencies are attracting more and more attention and are seen by many as a secure solution without geopolitical influence or other external factors, the blockchain as the technology behind the digital currency has also come to the fore. This technology is much more than just the basis for trading Bitcoin, Ethereum and other cryptocurrencies. The decentralized structure of the blockchain will gain in importance in the future economy and occupy a leading position both in data storage for companies as well as in general global business transactions. The application of blockchain technology saves costs, increases efficiency and accelerates many processes in the administrative sector by automating processes. For the conclusion of contracts, the purchase of securities and transactions with cross-border performance, the blockchain is a secure and future-oriented technology.
A quick look at how the blockchain works
The blockchain offers some functional advantages that are appealing to the user and that provide for discussions and diverging opinions At a political level. The example of money transfers on a digital basis currently shows most clearly why the innovation is currently still a niche segment. Transactions and banking transactions via the blockchain make a central location unnecessary. This in turn means that high earning sectors such as banking are no longer needed to the same extent as they are today. Anyone can make transfers without having to contact a bank clerk, handle their financial transactions completely autonomously via the block chain and thus act globally and carry out real-time transactions. No central servers are required for the blockchain, since each user has a copy of his own deployment modules. The growing interest of economic and private parties is unstoppable and it is only a matter of time before different industries will join the blockchain and apply decentralization in data traffic and data storage.
Digital technology does not “forget”. Everything that is processed via the blockchain is stored seamlessly and is supplemented by the additional data each time a new entry is made. The storage follows a clear line and thus enables a complete structure and comprehensive traceability, and minimizes the risk of manipulation.
Versatile use – the blockchain will prevail
First and foremost, blockchain technology will establish itself on the financial market. Due to the increasing interest of more and more companies and authorities, the topic has developed into an important point of discussion in politics. In the future, the boom will be unstoppable, despite the fact that there are as many proponents of the technology as there are critics. Hardly any other technology offers so many advantages for the global economy as the blockchain.
A new large wave of digitization is imminent and, using the blockchain, will ensure that the ever larger data streams can be stored, analyzed and processed in a clear and concise structure. Germany has some catching up to do, as other countries are already a few steps ahead in using the technology and have recognized the versatility of the blockchain and implemented it across industries.