Why Is Blockchain Important

Rohan Pinto

The rising tide of blockchain technology is aiming to lift all boats in the technological industry. Whether we are talking about the way we bank or the way that other businesses serve us better, there is so much potential when it comes to using the blockchain technology. A lot of misconceptions are hovering around the heads of common people and some of the leading technological experts regarding the unmeasurable growth of blockchain technology observed in last few years.

Countries like Estonia and Brazil have already implemented Ethereum blockchain to create new course of digital identity and smart contract based voting system. Singapore and India are already working on developing smart cities based on blockchain technology.

Dubai claims that it will be the blockchain capital of the world by 2020 by moving majority of majority government entities such as Dubai Police, Dubai Electricity and Water Authority, the Knowledge and Human Development Authority, etc. on the blockchain.

So why is that? How has Blockchain consolidated its place as the 800-pound gorilla in an industry? And finally, why is blockchain important? The answer is simple and it is the consensus mechanics of blockchain that makes it fast, secure and transparent and the second thing is that it is not controlled by any singular central authority thereby providing us with a secure and private online environment.

Other concepts such as smart contracts and smart property have created the new level of trust amongst traders and completely revolutionize the way we sell and buy services and goods. According to experts ‘if you don’t understand the smart contracts you don’t understand the potential of blockchain’. For instance, Blockchain based smart contacts could take care of issues related to digital identities such as security breach and data leaks. These identification systems are secure, irrefutable, unique and pretty much impossible for an outside source to gain access without the proper authorization. We at 1Kosmos have successfully implemented Ethereum based blockchain solutions & created a mobile application (Trusted Digital Identity Safe) to securely store and transact with your digital identity called BlockID to make transaction way far securely across the globe compared to conventional transaction applications.

Blockchain matters because almost anything can be recorded and stored on it…

Almost anything that has value can be recorded and stored on the blockchain, and this includes things that may have nothing to do with money. This could include things like a record of ownership, digital files, identity information, copyright license and more. Not all of these are going to contain a monetary value, but they would still hold some value to the person who owns them.

Blockchain matters because it reduces costs and makes the transaction faster…

When you are using a distributed ledger, like what is found with Bitcoin, you will be able to transfer your assets on the shared ledger, rather than having to worry about more than one, thereby reducing the costs and saving the parties of each transaction some money. Not only can you use blockchain in order to reduce the costs involved in your transactions, but you will find that the time in which you can complete those transactions will go down by quite a bit. Because you are able to get rid of the intermediaries that slow down the process and because the transactions are done on a shared ledger, the blockchain seems to be able to settle most transactions almost instantly.

Blockchain matters because it is transparent and secure…

Anyone who is on the network will be able to see how transparent the blockchain based technology can be. The computers that are connected to that blockchain will need to approve the transactions or any changes to that blockchain, so it becomes hard for transactions to become manipulated or hidden.

Many people have become tired of trusting banks and big companies because there are too many cases of manipulation and fraud with the data to even count. But when working with the blockchain system, the transactions can’t be altered at all, which makes the trail pretty clear on the blockchain. The security provided with this technology is not considered flawless, but it is much better than most of the systems that are being used today.

Blockchain has the potential to change pretty much every industry as long as the right platform is used. There are already a number of platforms that are developed to help with the insurance world, the financial world, and so much more and there are way too many answers for a question why blockchain matters that cannot be even counted.

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Meet the Author

Rohan Pinto

Co-founder of 1Kosmos

Rohan is the co-founder of 1Kosmos. He is a go-to security and identity management expert and the founder of several businesses that have made considerable advancements in blockchain and identity management.