Technologists know that no central authority manages cryptocurrencies, yet they are very secure and effective. One feels a certain natural compulsion to inquire about the structure of the scheme that makes this possible; how does the Bitcoin financial system even survive without crashing in a minute? Blockchain is this secret.
The Blockchain is a distributed ledger. The technology is not limited to a finite number of managers, in which the entire book keeping of the crypotocurrency is done. It allows for a network of individuals to input the details of transactions, known as blocks of transactions. Transactions could be anything like Mr. A transferred B number of Bitcoins to Mr. C, for instance, although there are lots of transactions being updated on a daily basis. The multiple transactions registered by the network of cryptocurrency operators forms a chain of blocks. Typically it takes about 10 minutes to update Bitcoin transactions in the Blockchain. However, this time gap varies from cryptocurrencies to cryptocurrencies.
IBM Global Financing cut down time employed in tackling money related inconsistencies by 75% through the use of Blockchain technology.
The great part of the Blockchain technology is that it has an inbuilt program that works with your wallet to verify the authenticity and credibility of any transactions. For instance, say you have 50 BTC and want to make online purchase of two items worth 50 BTC each. The Blockchain technology has the capacity to authenticate the process and ensure that the transactions check out. So we easily observe that the Blockchain is the closest thing there is to a central regulatory body for cryptocurrencies. However, it is managed by lots of users, making it a financial system where everyone is part of the body of regulators.
The Blockchain technology has vastly integrated into global marketing, and as it makes its way it leaves prints of positive testimonials; like that IBM Global Financing cut down time employed in tackling money related inconsistencies by 75% through the use of Blockchain technology. At this point, let us shift our consideration to the implications that Blockchain technology will have on Africa as a continent.
Blockchain Has a Touch of Smartness in Offering Services and Financial Transactions
Africa, being a largely developing part of the world, engages in plenty of business activities with foreign investors. The need for efficient transaction process remains as high as ever. Without facing constraints posed by bureaucratic bottlenecks, you are more flexible with this technology when managing your business deals. You would not need middle agents, or satisfy lengthy bank requirements, just to complete a transaction. Blockchain technology reduces the entire process to a smart and simple procedure. Thanks to the power of cryptography that has covered for the long requirements. And to buttress the entire issue, the system is inexpensive to operate.
Blockchain affords the Opportunity to Store Valuables
A large portion of African assets, like bonds, equity, deeds, and contracts are not exactly in monetary form. However, they still have value. Engineers built Blockchain to satisfy the purpose of storing such valuables as well. While commercial banks also meet this need, there are requirements that are often demanded that the ordinary African scarcely satisfies. But Blockchain technology mitigates if not curtails this completely.
Blockchain Guarantees Transparency
Fraud, particularly internet-based, has been a bane in the African society. It has made a huge fraction of the people extremely skeptical about making any financial commitment on the internet. But given that the Blockchain is not a subjective ledger or an account book managed by a small group of individuals, there can never be a chance of bribe or fraud. So, what can be more transparent than a ledger whose entries are recorded several times by a million hands? There is trust and assurance that there are no rooms for chicanery with Blockchain technology.
The Beauty of Decentralization
One profoundly great thing about the technology is that there is no central body overseeing the trend of the transactions, or making regulatory policies concerning the cryptocurrencies. If there is anything close to a regulatory body, it is the millions networked individuals who make entries on a daily basis into the Blockchain. This makes the system safe, because the system has its way of subtly evading cyber-attacks. Come to think of it, there is no single database that hackers can actually break into. So the system is so immune to attacks, and this is good news for Africans already involved or is yet to get involved in the technology.
Now we easily see that the Blockchain technology holds a lot of promise for the plenty emerging economies of Africa. Being cheap and transparent, the Blockchain technology has come to enhance a smoother process for transacting businesses, and Africans are already leveraging the tool to garner more financial success with ease.