Blockchain technology is a very crucial technology, being used on a very large scale, capable of solving transaction and security related issues. A blockchain is an open, disseminated ledger that can record transactions between two parties efficiently, provably and permanently. A blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks.
This technology helps maintain security concerns and has fully taken attacks opposition to the next level. Blockchain referring to block and chain consist of a growing set of records or blocks, each block consist of a timestamp and a link to the previous block so that they can form a chain. The blocks are linked using cryptography. In the word Cryptography, the pre-fix “crypt” means “hidden” and the suffix “graphy” stands for “writing.” It is a method of protecting information and communication by using the codes so that the information remains authorized. By design each transaction is digitally signed to ensure its authenticity and that no one tampers it. Blockchain is resistant to any changes in data, it makes data self-sovereign.
Data on a blockchain is more accurate, consistent and transparent than when it is pushed through paper-heavy processes. Due to its amazing advantages blockchain is being used in multiple sectors. The sector which uses blockchain in a very wide range is the financial sector. It has transformed the payment in a very unique way and brought ease in the payment method. Traditionally payment process used to be a very cumbersome and hectic task, confined to a particular place. People have to stand in queues for any kind of small or big transactions which led to lots of difficulty and wastage of time. Also, such a payment process did not provide much authentication. With the blockchain technology and digitization payment process got revolutionized it has made processing faster with more detailed audit information and higher levels of security. It is capable of increasing efficiency and has improved customer satisfaction. Blockchain technology has enabled transparency in the payment process. It uses encrypted distributed ledger that performs the real-time verification of the transaction. It does not need any assistance from the third party in the payment process. Blockchain has made payment gateway very simplified. It does not require any centralized authority to manage the records. There is no chance of any fraudulent activity or error to take place due to its decentralized process. Blockchain has facilitated and accelerated the payment process.