In the era of digitalization and automation, data intelligence has become a major issue. Blockchain technology and its related cryptocurrency, Bitcoin, are a great promise to solve this issue. Technology has become a double-edged sword as it has become a powerful tool to store, trade, exchange, and manipulate data. Margex has introduced itself as a viable option in the blockchain or cryptocurrency world. It has made a reliable way to trade Bitcoin with up to 100x leverage.
What is Blockchain technology?
Blockchain technology is a new decentralized platform that allows peer-to-peer transactions without any third party. The use of blockchain as a peer-to-peer ledger can ensure the transparency and security of data that allows counterfeit or false data to be easily detected.
This eliminates middlemen such as banks, lawyers, and other institutions who serve as authenticating agents for transactions. Today, it has gained massive popularity due to its potential to transform multiple business sectors.
Why is blockchain the future?
Blockchain first emerged as a foundational component of transactions in Bitcoin. Still, it has grown leaps and bounds on its own — with potentially limitless potential uses for everything from banking and investing to IoT devices. Moreover, the technology is so promising that IBM predicts blockchain will soon be a trillion-dollar industry:
“In a January 2016 report, IBM stated that blockchain has ‘the potential to redefine transactions.’ The report estimates that the business value of blockchain could be somewhere between $3.7 trillion and $11.1 trillion by 2025.”
Capabilities of Blockchain Technology:
1) Transparency: Open and shared data means absolute transparency between all parties involved.
2) Immutability: Once data is added, there is no way of removing it without an alteration.
3) Blockchain provides a way to hold data locally and share it with other users.
4) Sharing data won’t cost more than the initial transaction fee.
5) Data can be stored at a central location and used by various processes simultaneously for sharing or transferring information.
6) There are no middlemen (no banks or lawyers), so transaction fees are low, and frauds are eliminated as there is less dependence on third parties.
7) The blockchain is decentralized; a single institution can’t control it.
8) Assets like money and stocks can be easily traded across the globe using crypto assets as they are borderless.
Main purpose of blockchain technology:
Blockchain Could Bring Efficiency to Remittance Industry
The blockchain ledger is immutable, meaning that it’s impossible ever to change. This could be a big upgrade for the $583 billion remittance industry. For example, transnational banking corporations often charge high fees to move money overseas, and the average cost can reach up to around 2 percent on each transaction. However, blockchain technology has the potential to cut these costs by as much as 90 percent because the first-mile cost is no longer an expense.
Protected transaction of money :
Blockchain makes transactions secure by design. It is virtually impossible to tamper with data recorded on the blockchain. Any attempt to change an entry on a block would require recalculating the hash or modifying all subsequent blocks, which is impossible using today’s technology.
The blockchain provides transparency by allowing users to view transaction histories and information. This leaves no place for manipulation or backroom deals.
The technology offers users a digital identity, thus making it difficult for individuals dealing in illegal activities to carry out their work. In addition, since the blockchain creates a tamper-proof record of every transaction, it helps track criminals down and reduces fraud, theft, and losses related to identity theft.
With a decentralized system, there is no single point of failure. This means that no central authority can control or manipulate the blockchain. It also means that the network remains independent and free from outside interference or manipulation.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller automatically being executed without any third parties required.
Proof of ownership:
Users can provide proof of ownership with the blockchain by embedding unique information on a digital asset’s blockchain. This includes data such as logs, credentials, etc., which can be stored on the ledger. This could open up many opportunities for companies who wish to streamline their processes and automate business procedures.
The technology could also provide users with their own digital identity. This means that they will be able to operate legally in various parts of the world without worrying about issues like cross-border regulations or the risk of getting into trouble with corrupt officials.
With the use of blockchain, innovations are occurring at an exponential pace. Initially, the tech was used to power Bitcoin transactions. However, blockchain technology has since grown and become more powerful – powering assets and assets that cannot be stored on a traditional ledger.