For a long time, online currencies had a major problem. Users could duplicate their files and spend their money twice. However, when bit coin was invented it solved this problem with the blockchain system. Blockchain is “a distributed database, meaning that the storage devices for the database are not all connected to a common processor,” according to Bernard Marr, a writer at Forbes magazine. This database contains a list of transactions, called blocks, that are timestamped and linked to previous blocks, and ensures bitcoins maintain their integrity as a unit of currency. Also, through cryptography, users are only allowed to edit and change their portion of the blockchain.
Although Fintech companies are working to change this, most online money transfers still need to go through a financial institution. Blockchain technology could change this because it is able to record transactions, establish user identity, and establish contracts. Blockchain can be programmed to execute contracts whenever certain pre-coded conditions are met, and users enter their keys. These “smart contracts” could be used for many things including: billing, recording medical information, and controlling intellectual property.
I think these smart contracts will be essential in creating technology that will automatically process basic tasks. This will overall reduce costs, and create more efficiencies in all the industries it is used in. The one issue I see in implementing this is maintaining security of the information on the block chain.
http://www.forbes.com/sites/bernardmarr/2017/01/24/a-complete-beginners-guide-to-blockchain/#401fc15d66a6