Blockchain technology: what is it and why is it so important?

Despite being an issue that’s on everyone's lips lately, blockchain concept can be really complicated to understand for those people who don’t have knowledge or work in programming. Most of us associate blockchain technology with cryptocurrencies and, although both concepts have a close relationship, blockchain has a much larger potential that has already begun to be exploited. Very soon this technology could be in our daily life, that’s why it’s important to learn now basic knowledge of its operation.

What is blockchain technology?

As its name suggests, it is a "chain of blocks". These virtual blocks are linked to each other and are like "packages" of information about economic transactions (or any other kind of information, as we will see later). This information is verified and stored by thousands of people on their computers, in addition to being encrypted and sealed so it can’t be modified again and there’s no way for it to suffer fraudulent attacks. In short, blockchain is a collaborative and totally safe way to create and preserve sensitive and valuable information.

What are the advantages of this technology?

Blockchain technology was born from the hand of bitcoin, the first cryptocurrency (digital exchange medium or virtual "exchange currency"). Its connection is logical, because blockchain allows managing economic assets without depending on a bank or centralized entity and in a completely secure, transparent and anonymous way.

These advantages unfold in many others, because independence leads to faster management and the disappearance of associated costs. Security not only protects against theft and fraud, but also against the possible loss of information. Transparency increases security and democratizes the power of information. In short, great benefits that, as you can begin to intuit, can be applied to many areas.

In what other areas will blockchain technology be used?

Currently there are many projects underway in different parts of the world to take advantage of blockchain technology in areas close to finance, but also very far away. To get an idea, in Japan blockchain will be used to create a public registry of real estate properties. Some fintech companies are also working to create a cloud storage service that doesn’t depend on a single provider and to create an online identity validation system that radically ends personal data theft. And these are just some examples among many others, because the possible uses of blockchain at both governmental and business areas are practically unlimited.

And, how could it be otherwise, in PaynoPain we think blockchain technology is the future. That’s why our payment gateway Paylands offers the most effective service to the fintech that work in the cryptocurrencies trading business, in the same way as our e-wallet CHANGEiT Wallet allows to have your balance in any cryptocurrency and to reflect your financial movements in blockchain movements. If you are interested in learning more about our products, don’t hesitate to contact us.