The Reasons to Start Learning Blockchain

The buzz surrounding blockchain has been growing since Bitcoin first appeared back in 2009. Since then, a lot of people have tried to understand what it is and why everyone’s talking about it so much.

While most people know that blockchain is something to do with cryptocurrency, they may not know all the other different uses for the technology. This article aims to shed some light on the benefits of learning more about blockchain and how it can be used in your day-to-day life.

Let’s take a closer look at some key reasons you should start learning blockchain.

Read also: cryptocurrency for dummies and beginners

Before we dive into blockchain itself, let's begin by taking a step back and defining the basics of blockchain. In short, blockchain is an encrypted and decentralized digital ledger that stores data. It is a shared database that is maintained by computers across multiple nodes.

As each node updates their copy of the database, they will send those changes to every other node on the network. As a result of this process, any changes to the original data are reflected as soon as they are entered.

In addition, because blockchain is decentralized, no single entity owns or controls the information. Instead, there are many copies of the same data stored in different places. So, if one piece of data was changed, the rest would automatically update themselves without requiring input from anyone else.

This makes it very secure and it allows users to trust the system.

When you think of blockchain, you might immediately picture cryptocurrency. However, blockchain has far more to offer than just money. While Bitcoin (the world’s first cryptocurrency) remains the most popular form of cryptocurrency, there are over thousands of cryptocurrencies in existence today.

So, while the majority of people talk about Bitcoin, they are missing out on the true potential of blockchain. We suggest you to check our centralized vs decentralized network article before you continue.

Here’s a quick round up of some of the ways blockchain can be applied.

Banking & finance

One of the most obvious applications is the financial sector. Because blockchain is decentralized, there is no central authority to keep track of transactions. It means that the data stored in the blockchain is always accurate and unchangeable.

Therefore, banks can use blockchain to automate processes. Bank of America announced that it had partnered with IBM to create an automated system for approving loans. Once the loan application is submitted, it is processed through the blockchain.

This means that the bank doesn’t need to rely on a third party to complete the transaction. Instead, it saves time and money by eliminating manual oversight. It also reduces the risk of fraud and ensures that the borrower gets approved before funds are transferred.

Healthcare

Another area blockchain has been proven useful in is healthcare. In this case, blockchain is being used to store patient records. These records are immutable and secure, which means patients feel safer when sharing information with doctors.

For example, researchers recently developed a toolkit for hospitals to manage medical records. The toolkit uses blockchain to encrypt sensitive records and make them easier to share securely. This way, doctors can access patient data anywhere, anytime.

Transportation

Transportation is another industry that can benefit greatly from blockchain technology. For example, Uber is using blockchain technology to allow passengers to track their rides. With blockchain, riders can see whether drivers have arrived and paid the fare.

Furthermore, drivers can see what passengers have ordered. If they are running late, they can request a refund. All of this happens without any human intervention, making the entire process faster and cheaper.

Supply Chain

Finally, supply chain management is another area that can be improved using blockchain. A good example of this is the food industry. Food products must go through various stages of processing before reaching customers.

However, these stages are often managed manually. If one stage fails, this could affect the entire supply chain. By storing product information in the blockchain, manufacturers can trace the origins of their products. They can also check that the correct products were delivered to the right location at the right time

If you find yourself asking “Why should I care about blockchain?”, then you are probably already thinking about the potential opportunities. While blockchain isn’t quite mainstream yet, there are plenty of companies that are putting it to use.

Even though blockchain hasn't become mainstream yet, it hasn’t stopped people from implementing it. It’s clear that blockchain is going to change the way we interact with businesses and governments around the globe. And the best thing about blockchain is that it is open source. Anyone can contribute to the development of the technology, which means that it will only get better over time.

As blockchain continues to grow, it becomes increasingly important to stay up to date. We have the Start Here part where you can start your journey to learn crypto and web3 at the same time. Head over, and don’t waste more time!