The blockchain technology will eventually become a market of $ 7 billion, according to a study published by Bank of America this October. Through blockchain, Amazon will benefit from incremental cloud services demand and improve the supply chain tracking in retail.
Expectations are also high for IBM, Oracle, Salesforce.com, VMware and real-state and mortgage players such as Zillow and LendingTree, according to Bank of America. But, after all, what is blockchain and how it works?
The blockchain keeps a public record of transactions. Whenever someone makes a transaction, it is broadcasted to a network of thousands of computers around the world. To be validated, the operation has to be approved by all the computers analysing the information.
Since a very diverse and big network is involved in validating the transaction, manipulate or hack the information is much harder than in a traditional database. No one got close to hack a blockchain protocol until now.
Source of image: Devteam.com
The technology eliminates the need of intermediary institutions to do safe transactions. For the first time anyone, anywhere, without asking permission to an authority, can do a instant, low cost transfer. It revolutionises the sectors of exportation, importation, banking, financial markets and almost all the industries.
Bitcoin and cryptocurrency were the first widely known uses of blockchain, but today the technology is influencing almost all sectors
In terms of efficiency, the blockchain reduce costs and eliminate a lot of waste (of time and resources). The job of auditing documents is reduced from days to minutes.
Less oversight is needed because all the participants are already self-monitoring themselves – without the consensus of all, no data can be changed. Transactions are verified in real time. The pace is much more favourable to business.