Blockchain technology is a true disruptor. Not many technologies these days can claim the same. And while it’s revolutionized digital currency, there’s a lag of implementation in already established industries.
Why? First, it can be a difficult concept to grasp. But here is the gist: Blockchain is a digital ledger of transactions. Exact copies are stored on a network of computers. Every member of the network can review the entries and record new ones. These transactions are stored in groupings called blocks. Since the groupings are recorded together in links, they form a chain. There is no need for a central authority to manage the data because the links between the blocks are protected by cryptography.
Smart Contracts
With smart contracts, individuals can exchange anything of value, from money to property.
“The best way to describe smart contracts is to compare the technology to a vending machine,” according to Blockgeeks. “Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account.”
Digital Payments
Money can be transferred quicker without needing to be processed through banks, especially when routed internationally. Third parties also won’t be exposed to private information which minimizes security risks.