How Blockchain Has Transformed Our World




Blockchain technology involves massive computer processing power, which requires huge quantities of memory chips, graphics cards, and processors. All these devices use semiconductors. As demand for blockchain processing power grows, so does the semiconductor industry resulting in a distinct investment opportunity.

Blockchain Technology

Originally just a theoretical concept, blockchains are now the reality underpinning a wide range of commercial applications. Notably, blockchain technology is used to record and verify digital asset transactions, such as cryptocurrencies.

Blockchains – often referred to as distributed ledgers – create and enable immutable records that can be cheaply and securely verified by anyone, not just a central authority. As the technology sees increasing acceptance, its potential is being explored across government entities and numerous industries, including in financial services, healthcare, legal and consumer – anywhere secure recordkeeping is a requirement.

Distributed Ledger

Market Realist

Blockchain is a software platform for digital assets. It is the list of records or “blocks” that are secured using cryptography. Blockchain (or distributed ledgers) has obvious advantages as explained above. Blockchain was developed in a way that transactions can’t be deleted. They can’t be meddled with, as blockchain uses cryptography. The platform removes the need for a central authority. This is critical as centralized ledgers are at times vulnerable to cyber attacks. Blockchain is also used by businesses to store data in a secure way.

Bitcoin, a cryptocurrency, which is backed by the blockchain technology, have excited speculators and programmers. As a result, bitcoin has reached dizzying heights in no time. Even big tech companies are interested in blockchain technology. Two years back, tech giant Microsoft (MSFT) joined hands with blockchain firm ConsenSys.

As mentioned above, blockchain technology requires a huge amount of processing power, which has driven semiconductor demand. This trend has caused investors to rush to semiconductor stocks (SMH). We’ll discuss this more in the next part.

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