Let’s start with a small tale. I watched a guy get scammed on the bus the other day. He got a call from some guy claiming to be a Bkash representative. In a few minutes, he handed over his account details. I tried to stop him as soon as I got wind of what was happening, but it was already too late, and he had handed over his pin number. We can safely assume what followed.
To many of us, remote transactions are still very hazy. In general, we prefer to exchange via cash. This is in no small part due to the lack of safety over the remote channels available to us; in addition to general inconvenience. Bkash scams are everyday things now. And even if they weren’t, the process of maintaining a Bkash account feels tedious to me. Load up an online wallet with money, pay some money every time you do it. Our banks have made huge strides in making transactions more liquid, but there is still room for improvement. With relatively new technology on the horizon which provides many of the answers we’re looking for; let’s take a look at blockchain.
Blockchain, how it works
Simply put, blockchain is a chain of blocks that contain and communicate information. Although its implementation is relatively new, its roots can be traced back to 1991; when it was primarily used as digital timestamps. In 2009, the foundation for use of blockchain as it is today was laid, as it contributed to the creation of the cryptocurrency Bitcoin. It should be noted that once some data has been recorded in a blockchain, it is nearly impossible to alter. A very simple example of the information in a block would be the basics of a transaction: sender, receiver and amount. Any changes in the block can be traced by changes in its hash; a hash being a sort of digital fingerprint. What this means is a blockchain cannot be created or edited without informing everyone on its related p2p network. This essentially makes blockchain one of the most secure modes of technology.
A more secure future for your bucks?
When you think about it, the money you have remotely; like in bank accounts and mobile wallets, works because it connects to you. Without your identity attached to it, the money belongs to no one. And in that way, your money is under threat via your identity. Blockchain technology ensures your money, your identity and your transaction details are secure. Intermediaries like banks or companies like bkash keep track of your transactions and your money.
Blockchain moves to cut out the middleman and keep your money assigned to you.
This article was intended to remind the readers of the risks and inconveniences of traditional bookkeeping and transaction procedures. In addition, we took a simplified look at blockchain as a possible solution. Stay tuned for more as we explore more on cryptocurrency, blockchain and try to decode the technology behind them in an upcoming series.