Blockchain: The Unheard-of Financial Technology Revolutionizing Legal Tech - Essay Sample

Introduction

Blockchain is critically the most debated and promising of the financial technology trends with an excellent potential to change the discourse of legal technology (Zachariadis, Hileman and Scott, 2019). The unheard-of such as the development behind DLT (Distributed ledger technology) and cryptocurrencies, has grown much beyond these particular origins and maybe more significant compared to the currency it gives weight. From a kind of distributed ledger technology, blockchain enables secure decentralization of group to group, irredeemable exchanges, offering accurate and permanent records with the occurrence of these. Thus the use of technology all over the recognizable industry and the command of opportunities to expand its applications are silently being initiated under development awaiting the availability of the modern market. Blockchain is essential since it enables both IT and business scholars to possess assets, digital goods, and data. This evident, even as the development of blockchain technology consistently grows in several companies across the host of industries; its resistance to modification makes it efficient and valid. However, by the elimination of the middlemen (data keeper), it empowers companies to swiftly and comfortably trace the transactions and products back to the origins. Blockchain, unlike other technologies, changes the general infrastructure of exchanges through allowing the parties involved to directly connect and by enabling transactions to take place between them digitally in the absence of the middleman (Rosati and Cuk, 2019). The focus of this essay will base on the causes and effects of blockchain technology and its significant reaction to both the IT and business students.

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Firstly, blockchain comprises of multiple blocks held together, and for this to take place, there must be a transaction, for instance, the impulsive purchase at amazon company, especially after multiple prompts of checkouts, you simple go contrary to your decision and purchase and item. As I had earlier discussed, in several instances, a block will potentially combine thousands of business transactions; hence your shopping at Amazon shall be packed in the neighborhood alongside other the transaction data of other users (Cahill et al., 2019)

Secondly, the transaction has to be approved, and after making your purchase, the transaction must be approved. Most probably, there must be someone who scrutinizes your data records such as the commission of security exchange, local library, and the one responsible for vetting the current entries. Thirdly, the particular transaction has to be kept in a block, and after the approval of the sale, it receives the green light. The block must then be issued with a hash, and once they been verified, it has to be assigned a distinct identification code known as a hash. The kind of transaction above results in the blockchain, and once it has been added, it will be available for the public view. If one checks at the blockchain, he or she will access all the transaction information together with the data on time, height, and who relayed the block to be added to the blockchain (James, 19).

Every computer on the network of blockchain has its copy meaning; there are numerous or in incidents of bitcoin, multiple copies of a similar blockchain. Even though every blockchain copy is similar, conveying the information across the computer networks might somewhat be challenging to manipulate. Still, with blockchain, not yet a single account of incidents can be manipulated. The hacker shall have to manipulate each copy of the distinct blockchain network (Rosati & Cuk, 2019).

The effects of blockchain given a choice, the individuals may pay extra for renewable energy than fossil fuel. Unarguably, blockchain eases the problem-solving process but instead makes it possible. The most vibrant idea that resulted from the currency side on the project of blockchain revolved around the coloring of coin meaning, assigning some value to it and, in a way, permits the individual to produce the graph of the past transactions. However, this bears a common application since it would transform into a boycott version of divestments and sanctions (Cahill et al., 2019).

Currently, about seven years down the line, after the establishment of the bitcoin softwares, there have been no significant fixes core core**s. Some of the pros and cons of the blockchain include improvised accuracy by eliminating the role of humans in the verification process, reduction of cost by replacing the third party role, resistance to external forces due to decentralization, secure transactions, and transparent technology. In contrast, the negative impacts are the enormous cost of technology related to bitcoin mining, minimal transactions in a second, the history of utilized criminal activities, and fear of being hacked (James, 19).

The accuracy of blockchain is achieved when its network is accepted by those of over a thousand computers hence the involvement of human beings in the verification process is eliminated, and even if the computers o blockchain network were to commit an error, it could only be on a single copy of the blockchain. The reduction in costs is also another effect created by blockchain. Typically, consumers always pay the banks to verify a given transaction, give a notary for the document signing, or pays a mister to preside over a marriage. Blockchain eradicates the urge for the third party to involve in the environmental process. Moreover, business owners cater for a minimal fee when accepting payments through credit cards for instance, since the banks have to facilitate the transactions (Cahill et al., 2019)

Besides, the blockchain stores not of its data in a central place; instead, the blockchain has to be copied and distributed all over computer networks. When a current block is supplemented to the blockchain to show the transformation. Through the distribution of data across the system instead of keeping it a single central location, blockchain proves more challenging to deal with or interfere with, and in case its copy lands on a hacker, it is only that particular copy that will be tampered with and not the whole network (Cahill et al., 2019).

Several of these blockchain networks run public databases that are, any person connected to the internet can view the transaction history of the blockchain network but cannot access a particular identification data about the users involved in the transactions. When one conducts a public operation, their public key (the unique key) is captured in the blockchain instead of personal information even though their identity could be connected to their address of blockchain thus preventing scammers from accessing a given personal data unlike what happens with the bank when hacked (Cahill et al., 2019).

Even though blockchain can help us save some cash on transaction charges, the technology is not all that free, for instance, the evidence of system which bitcoin utilizes to verify the transaction such as a large number of consumers computational. However, in the actual world, the power from millions and thousands of computers on the network of bitcoin might be close to the annual consumption of the Denish (Rosati & Cuk, 2019).

References

Zachariadis, M., Hileman, G., & Scott, S. V. (2019). Governance and control in distributed ledgers: understanding the challenges facing blockchain technology in financial services. Information and Organization, 29(2), 105-117. doi.org/10.1016/j.infoandorg.2019.03.001

Rosati, P., & Cuk, T. (2019). Blockchain Beyond Cryptocurrencies. In Disrupting Finance (pp. 149-170). Palgrave Pivot, Cham.doi.org/10.1007/978-3-030-02330-0_10

James, E. (2019). Improving ocean shipping: blockchain reaction. Inbound Logistics.Accessed: https://www.library.northwestern.edu/find-borrow-request/requests-interlibrary-loan/lending-institutions.html

Cahill, D., Baur, D. G., Liu, Z. F., & Yang, J. W. (2019, November). I Am a Blockchain Too: How Does the Market Respond to Companies' Interest in Blockchain?. In 2019 Financial Markets & Corporate Governance Conference. Accessed: https://ssrn.com/abstract=3319237 or http://dx.doi.org/10.2139/ssrn.3319237