Blockchain Technology and Its Emerging Applications

Abstract

This chapter describes blockchain technology by introducing what this technology is, the history behind it, and various applications of this approach in financial and nonfinancial sectors. Several key features of using this technology are explained, with the “how” and “why” behind the technology, which is having a big impact in the digital world. Finally, this chapter provides real-world examples that utilize this method. Blockchain technology has reached the height of popularity with the advancement of Bitcoin and other digital currencies; but there are various other sectors where it could also be used. Blockchain is a combination of files that are the same on many computers and software that writes and verifies the files. Depending on the technology being used, a file contains various kinds of information, with a stamp that verifies the information. Each transaction is verified by a majority of the parties involved, and once entered, information can never be erased. Since a majority of the people or computers need to verify a transaction, there is much less chance of this technology being hacked. In other words, blockchain is much more secure than other storage systems. No one oversees this technology, and the transactions processed in it are very transparent.