Blockchain: A technology that will help you track your tax money down to the last penny and much more

Envision a framework where everybody could track the taxes they’ve paid, down to each penny. Where genuine democracy would be rehearsed, no apparatus of votes or constrained voting would happen, not by any means. Where each business would have the capacity to work in a free-manner and develop with no obstruction from anybody, where merchants and corporates would earn together on a mutual consent. This framework won't just improve things for individuals, but will also eliminate clashes of ownership completely. Courts? Why invest so much energy and cash? Sounds too idealistic? Wait until this technology kicks in.

Bitcoin has made a lot of headlines following the cryptocurrency’s development in 2009, yet as of late, consideration has swung to its fundamental innovation- the blockchain.

Blockchains are a method for storing information in a sequential way: sharing it between numerous holders, to get rid of the requirement for a trusted focal server. It has to be upgraded with the assent of majority and, once entered, data can never be deleted, which means it can give a distinct, unquestionable record of ‘future events'.

The decentralized, circulated nature of blockchains brings various advantages: more grounded security as the record is shared by a great many users, straightforwardness as all exchanges are freely recorded and diminished danger. No single power has control, so if there is a glitch and one of the nodes in the system goes down, the framework still, will be able to function at full capacity.

Blockchain & its Tangents

- Smart Contract: Envision an agreement that you sign, where the majority of the key provisions could naturally execute. In the event we all accept, that the blockchain technology of decision is keeping records in a state of harmony between various events (e.g. which shipping holder is which TV in), then Smart Contracts are the rationale layer on top, that take into account "if this, then do" conditions to be performed straightforwardly from the contract. Let’s just say the seller sells 10 coffee machines at a price of $1 each, and the buyer puts an agreement to buy those machines until the price of each stays above $1; if it falls below $1, the buyer would no longer be interested in buying them. The difference however is, if the price of a coffee machine dipped below $1, the smart contract could change the owner of the machine back to the seller.

- Tracking Taxes: As in Blockchain the money is passed from one entity to another, Bitcoin demonstrated that appropriated records can be utilized to track money. Where else would we be able to utilize that? Consider the Student Loans Company, international loans, lobbying through blockchain (Lobbying is illegal in India, this technology might disturb a few laws too), tracking tax payers money etc.

- Online Democracy: A simple peer­to­peer variant of electronic vote would permit online votes to be sent straightforwardly from one party to another without experiencing a focal voting register. Digital Signatures provide an easy solution, yet the primary advantages are lost if a trusted outsider is still required to avert double voting. The system timestamps races by hashing them into a continuous chain of hash­based proof­of­work, proof­of­stake, proof­of­tally framing a record that can't be changed without re-trying the evidence chain. The longest chain not just serves as evidence of the succession of witnessed occasions, yet confirming that it came from the biggest pool of computational force. For whatever length of time that the majority share of computational force is controlled by nodes that are not collaborating to assault the system, they'll create the longest chain and outpace assailants. The system itself requires insignificant structure. Last year the Danish Liberal Alliance became the first-ever political party to use blockchain technology to facilitate e-voting.

- Land & Company Registrations: For any sort of a high­value property (land, autos, workmanship) it is vital to have exact records which recognize the present proprietor and give a proof that he is in fact the proprietor. These records can be utilized to ensure proprietors' rights (e.g. in the event of robbery), ensure possession is transferred correctly to the new owner and prevent sales fraud. Along these lines it is critical to keep up the accuracy of this data, and avert unapproved, false changes. Governments have started to research and apply this methodology for land and company registrations. Northern Ghana, Man of Isle and Honduras are taking charge to experiment this technology in their democratic systems.

- Indian Economy: India has generally high rates of expansion and a solid settlement society. Numerous Indians work in different nations and send cash back to their families who stay in India. Subsequently, these laborers wind up spending a ton of cash in settlement expenses with a specific end goal to exchange cash globally. Because of how effectively bitcoins are exchanged—and expecting possibly low trade expenses—India's economy could profit by the utilization of bitcoins to lower universal settlement charges and send a more prominent measure of cash home.

Conclusion

This technology is at a very nascent stage, certain obstructions will require to be overcome before some of these verticals can be applied. Moreover, it’s very clear that the security and controls connected with blockchain will need improvement before a significant number of these applications can become mainstream. Keeping in mind the end goal to smoothen the route for more prominent improvement and reception, financial service providers and new businesses will need to work together. Taking everything into account, Bitcoin was a critical leap forward – yet it's not the entire tale.

(Image Credits: Reuters)