Blockchain technology provides a number of advantages and is characterized first and foremost by the fact that enables money transfers and transaction in real time and without the need for an intermediary central office. This innovative technology has been subject to heated discussions and has also attracted attention of the world of politics since the dawn of the hype involving cryptocurrencies. Interest in blockchain technology is also increasing among more and more companies as they recognize the advantage of the technology and know that numerous business transactions can be realized more efficiently and securely using this technology. However, there are still several misunderstandings when it comes to the topic of blockchain. The first things that come to mind when we speak of this technology is Bitcoin as well as other cryptocurrencies. However, blockchain is not primarily only suitable for trading in cryptocurrencies, but offers a much wider range of applications. Fact of the matter is that the decentralized structure of blockchain technology can solve all the problems of today’s databases and thus provide greater security in the digital sector.
The influence of new technologies on conventional structures
The significance of blockchain as well as its advantages can best be explained by casting a glance at the financial sector. If transactions, securities trading and investments are processed via blockchain, neither servers nor banks need to be involved in the process. What may sounds like a problem to bank managers and critics of new technologies will establish itself as a revolutionary solution in the future. Due to the exclusion of decentralization, the blockchain is much more secure than any database on a joint server and, despite encryption, represents a risk to the people to whom the data belongs. With blockchain technology, user data is stored by the user himself, meaning that the user is also personally responsible for their data. Each individual path is linked to the previous block in the form of a data chain, resulting in an absolutely forgery-proof and seamlessly traceable data structure. One further key aspect regarding blockchain is the automatic processing of transactions and contracts, which ensures greater efficiency and resource savings throughout all industries.
Data storage in the blockchain cannot be influenced externally
The financial world and other business sectors need new technologies. The foundation for this has been laid and is being continuously expanded. Even though blockchain today is predominantly being used for trading in cryptocurrencies, it offers further opportunities and is clearly an important technology for the future. After lengthy discussions, politicians have recognized the importance of blockchain technology and are surprisingly receptive to the introduction and application of this option. However, more attention should be paid to its approval in various areas, as well as the introduction of blockchain technology in conventional banking. The competition is not sitting around waiting and if Germany does not want to miss out and be left behind by the international competition, a complete and comprehensive approval and use of the blockchain is already a present-day important stylistic means for a forward-looking economy. In addition to the individual user of the technology, administrative acts would be reduced in terms of time and the state could focus on the tax segment much more cost-effectively, with much more ease and without cost-intensive researching and more transparency.