Technology world is changing day by day, distances are becoming smaller, people can talk to each other irrespective of the distance using different modes like video, voice calls, emails and instant chat messages. Similarly in financial transactions too with third party trust i.e. bank, digital transaction can be made. Now, with the help of Block chain technology, secure money transactions can be made by connecting directly with consumer and supplier hence, there is no need of any third party.
With this technology, every transaction such as money, property or work creates an open decentralized database with combination of cryptography and maths. A digital ledger of transactions is created that in turn can be seen by every node on the network. Here, network is set of computers that are connected to internet that give approval to the transaction taking place. So, when a person has access to internet transaction can be made easily, hence any
involvement of third party organization is not needed.
The basic method is that cryptocurrency is like exchange created and stored digitally in block chain and then using encryption technique security is provided for and during money transactions and for verification of fund transfer. One such example is BitCoin, the way we send and receive e-mails, bitcoin can be sent and we can buy anything using bitcoin and transactions are verified by miners. It was one of the first successful implementation of block
Banking industry is showing keen interest in block chain technology. Now, let us have a look at the benefits of block chain technology:
1. Block chain technology is secure and reliable since it uses public ledger system also, it records and validates
2. Transactions made under block chain technology are authorized by miners, making transactions constant thus
preventing it from any kind of threat of hacking.
3. For any kind of transaction no third party or central authority involvement needed in block chain technology.
Before block chain technology is widely accepted, there are few bottlenecks that one has to overcome. Processing of payments of block chain technology is never quick enough especially that can support large scale operations. More research has to be done in this field so that this technology is widely adopted by all the sectors and with this money transactions will reach a dream come true level. Prediction says that by 2027, 10% of the global GDP will be absorbed into block chain technology.