Major Business Revolution: Why Block Chains Are Future

nnnAs the digital money market is becoming more and more active, people are paying more attention to the chain chain technology behind them. Many people think that the technology is like the original Internet, which will bring great changes to many aspects of society. To achieve business change. This paper analyzes the problem and introduces the potential and advantages of the block chain technology, and is confident of its prospect.n
nnTranslated by: Inan
nThe price of Bitcoel has recently hit a record high of $ 3025, only 200% more from this year.n
nAswath Damodaran, a professor of finance at New York University, is the authority in the field of value assessment. He said that in the younger generation, digital money has replaced gold as their investment option, and sooner or later foreign currency such as Bitcoin and the currency will be associated with the currency To compete.n
nSo, will the currency become popular currency and pull the popularity of the euro, dollar, pound, ruble and other legal currencies? Anything that can be considered “money” needs to have three functions: value storage, value scale, and exchange media. The value volatility of Bitcoin shows that it has just started to meet these three criteria, but it has the potential to achieve these functions.n
nHowever, digital money like Bitcoin is only one application that supports the technology block chain. According to the BBC’s explanation, the block chain is:n
nThe method of recording data is a digital account of transactions, agreements, contracts and anything that requires independent recording and verification. The most special place is that the book is not stored in a fixed place, it is distributed in hundreds of thousands of computers around the world. Everyone in this network can access the latest version of the book, so it is very transparent.n
nThe block chain combines the security of cryptography, the data storage and transmission of the encoded form with the peer-to-peer network to create a trusted database that is trusted but not controlled by anyone.n
nIf the chain chain can play a role in all walks of life, we will be able to see a more digital global economy that will promote economic growth and reduce poverty.n
nhuge potential n
nIn today’s business world, we still need trustworthy administrators (auditors, board of supervisors, etc.) to manage and record numbers and databases. The potential of the block chain is that it provides the opportunity to “allocate” these digital books to others through computer networks around the world. This can actually save the business based on a trust relationship, such as banking, auditing, lawyers and even government work. For example, Sweden, Georgia and Ukraine are transferring property records to the chain.n
nOn the financial side, people rarely borrow money face to face, so the banks need to act as a trusted middleman. The advantage of digital currency, such as coin, currency, etc., is that they eliminate the need for a trusted third party and use an encrypted secure database. This has a significant impact on any business that needs to verify payment and fulfillment of the contract (ie, most companies).n
nThe advantage of the block chain is that it can easily digitize everything and do not need equivalent things in the real world. For example, contracts, wills, contracts, and stock certificates may only require a piece of code that is stored on the chain that represents the exchange. Bitcoople’s shared network of computers will directly verify the transaction, no longer need a trusted intermediary to carry out this activity, it will not cause the transaction costs of the transaction.n
nAuthenticity and trustn
nThis verification process brings the possibility of change for many industries. Distributed books (block chains) provide the opportunity for each application of its system to enhance authenticity and trust. It can prove who has something at some time. Any existing validation contract, ownership, payment, or even performance can be transferred to the block chain.n
nThis will make the current management or verification of the transaction no longer have the privilege for the current world to operate the way to bring great changes. As with any transfer of power, the rulers are reluctant to give up their rights. In this case, the “winner” will be an existing company rather than a start-up, because the new system to play a role, you need to buy and trust, and the existing brand in this area has an advantage.n
nWhat is the main advantage of the block chain? By implementing the functions of the record manager, it will promote decentralized development, reduce the number of intermediaries involved in the business, and provide an alternative to how to store value. Physical assets and digital assets can be verified online to prove ownership of ownership.n
nSince it is possible to independently verify and track transactions stored in the chain chain, it is easier to combat crime, counterfeiting and fraud, and to reduce the systemic risk in the financial system. Distributed digital books will make data changes or forgery almost impossible because the data changes must be made in all the relevant “blocks” of the digital chain, so this behavior is exposed. This will reduce the associated costs and promote economic growth and prosperity.n
nThe financial industry is already changing: the world’s largest custodian bank – New York Mellon Bank is using a chain-chain platform for government bond settlement. One of the key research areas of the Bank of England is how financial technology affects market and social functions.n
nAnother benefit of the block chain is that its digitization function makes it possible to make miniature payments possible. Countries such as India that are large but still many can not do business with banks will be able to experience deep economic changes through the technology to drive storage, lending and future planning.n
nprivacy protection n
nOnline marketing and advertising industry in the Internet users, Facebook and other social media platform (the number of users over 2 billion) generated data and Google and Amazon to collect a large number of personalized data to the target group advertising. Block chains can maintain our online privacy, allowing us to store digital footprints in our own unique chain of chains and control who can access, rather than creating these records from these large organizations. The data will be decentralized and controlled by ourselves.n
nBlock chains can strengthen the entrepreneurial spirit of developed and developing countries by breaking the barriers of bureaucracy and corruption by circumventing existing power structures. For example, Digital Book Everledger is tracking real-life items – diamonds to prove its origin and ownership. In this way, the trust of the system has been strengthened.n
nWhen the Internet appears, it is a transformative force for many industries, and block-chain technology has the same potential. By transferring trust from the current “verifier” to the distributed block chain system, the world will witness the transfer of power to the public, which is a real idea of ​​change.n

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