Blockchain technology provides a safe home for rigid data. It allows a safe and secure platform for data so that no one can change it. Because of its high security, this technology is taking over other technologies.
It is assisting in every field of life. This technology encodes financial transactions so that no one can change them.
Moreover, Pakistan is looking forward to drawing most remittances from foreign countries. Pakistan will use blockchain technology and therefore few banks are working to develop and encourage this technology in our country.
This technology plays a leading role in smart contracts. It allows unchangeable contracts without human interactions. However no one is yet using smart contracts due to the rumors about legal affairs.
Let us see how blockchain technology can assist us in the future.
How does blockchain technology work?
It is an encoded series of blocks. Each block is an encoded version of records. These records (blocks) are assembled in the form of a chain. No one can change a block in this technology without changing other blocks as well.
Transactions are easier, safer, and inexpensive in blockchain technology. As a result, this technology is labeled as a “value-exchange protocol”. Because it helps in financial transactions. Each block in the blockchain has a trace of the previous block. Data codes and encoding plays an important role in this technology. And this is how this technology works.
Blockchain technology in Pakistan
The government is looking forward to decentralizing money to reduce corruption. Decentralizing money will be cost-effective for our weak economy. Institutes like banks need a change and up-gradation.
Firstly, this technology will make financial transactions easier. Secondly, it will record every step of the sender and receiver. It will help to eradicate the corrupt system. However, bitcoins are still banned in the country.
Telenor micro-finance bank is presenting the first blockchain-based cross-border remittance service. It will encourage the online payment platform. So, the aim of government officials is to attract remittances through different countries.
The governor of state bank addressed several steps while using this technology. State banks and other banks are trying to improve the financial conditions of the country.
Uses of block chain technology
Uses of blockchain technology include; video games, bitcoin, financial services, etc. Bitcoins represent this technology to the world. Bitcoin is a great and secure means of digital transactions.
However, the main purpose of this technology is financial transactions. Many banks are producing labs for research on blockchain technology.
Finance Bitcoin is a great example of blockchain technology. Crypto-wallet collect these digital coins. Every user has two distinct keys one for public use and one for private use. It makes payment anonymous and secure.
In video games and mining etc. these technologies track the origins of products. For example, virtual pets are available in the digital market. this technology generally manages the digital markets.
Many countries are taking advantage of blockchain technology. But Pakistan is using this technology to improve remittances in the country. State bank of Pakistan is trying to improve the financial conditions of the state.
The use of this technology will be a great decision to uplift the efforts made by the government.