Have you ever wondered how a transaction can be done directly, peer-to-peer, without ever needing a third man or a middleman? In today’s world, people see money as a number on their account, not the actual bills made out of paper. However, the problem is that they need an institution, namely a bank that processes and helps them transfer the desired amount to the receiver’s account. So, how can we eliminate this middle ground between the sender and the receiver? Believe it or not, we can achieve this feat by technology, specifically through blockchain technology. What I told you just now was just the gist of how blockchain technology can be applied in real life. There are still many other practical uses of blockchain technology that can be utilized other than financial application such as in healthcare, real estate and even in voting system.
Blockchain is a system that allows records to be stored, facts to be independently verified, and security to be ensured. The main problem with the current system is that it is a centralized system where it offers control with relatively effective and efficient means. It does, however, come with a lot of drawbacks. The biggest drawback is its ineffective approach because centralization is typically not very efficient. There is no transparency, lack of proper security and possibility of frauds. By using blockchain technology, this legacy system brings decentralization into play. With financial technology, everyone can join and participate in the system as each peer has a copy of the ledger to ensure that the blockchain preserves data integrity and combats fraud. Furthermore, blockchains are distributed yet decentralized, storing data over a network of personal computers. Consequently, this system is not owned by a single entity or person. All of this operates virtually through technology. Hence, there is no longer the need to build another physical infrastructure for it.
One prominent example of blockchain technology’s application is Bitcoin. It uses the technology by tracking records of ownership over digital cash. People from all over the world help move the digital money by validating others’ Bitcoin transaction with the personal computers. At the same time, they earn a small fee in the process. As a result, only one person can be the owner at a time and the cash cannot be spent twice like counterfeit money with a physical bill. But, Bitcoin is just the beginning for blockchains. In fact, future companies could be totally governed by algorithms that can help us protect our online identities and even track the billions of devices on the internet of things thanks to blockchain technology, which maintains and verifies online data securely.
Accordingly, Finterra has designed the Gallactic Blockchain. This platform can be customized to serve as a DeIFi (Decentralized Islamic Finance) platform through the issuance of tokens that might be bought, sold and transferred easily between investors, lenders and fund seekers. Furthermore, the tokens can also be donated from around the world making it accessible to anyone wherever they are.
For more information, please visit finterra.org.