Blockchain is not a new word as it has become famous ins a short span of 12 months. An overwhelming figure of $1 billion people has been invested in the blockchain startups from the beginning when the technology was first introduced. What is new in it? Why are people taking an interest in this? What is so particular about this technology? To know this, one should first understand the role of blockchain and also need to understand the working of the blockchain. In simple words, Blockchain is a platform used for recording and verifying the account transactions. Blockchain was first created in 2009, the authors still unknown.
The working is done in such a way that the cash can directly be sent to one person without taking help from a financial institution. This digital ledger keeps a record of the transactions by logging the entries into a current chain of record and thus by giving proof of all kind of transactions that takes place in the Bitcoin network. These networks cannot be hacked, or no one can break it. This chain is known as the blockchain. The finance sector is the first sector that uses all the technology that has been introduced, and this one was not different. This technology helps in the process which is costly such as clearing and settlement. This is why there was a suggestion that blockchain should be known as the Internet of finance.
Many people have appreciated this, and more companies are ready to use blockchain as it will reduce the cost and time invested in getting things done manually. The only drawback is it will reduce the job of the middlemen. For financial companies, blockchain is like a dream come true which can erase money laundering or any other financial issues. Not only financial institutions but other companies have also expressed their happiness in the introduction of the blockchain.