Whenever we encounter the word “Blockchain”, the first thing that comes to mind is cryptocurrencies. However, we would be foolish to think that blockchain is limited to crypto usage. The fact is, blockchain technology offers far more potential than just revolutionising the financial sector. Its decentralised nature can be applied to a number of industries and use cases, which can transform traditional processes and increase transparency.
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Blockchain Explained – How Does It Work?
The internet brought with it a lot of capabilities that are used in our everyday lives. However, it is still highly flawed when it comes to security, privacy, and transparency. This was something blockchain technology addressed when it was first introduced. Blockchain made it possible to carry out P2P, or peer-to-peer, transactions without requiring any intermediaries, such as commercial banks.
Blockchain technology can validate transactions and store a permanent record of them while keeping identity-related information private. As a result, all personal information of the participants is hidden while transacting. This is done by achieving mass consensus by storing all the transactions in a digital ledger. By using blockchain technology, the users do not require any intermediaries or trust between themselves.
Scope of Blockchain Technology Beyond Cryptocurrencies
The decentralised application of blockchain technology seemed like the perfect fit for a class of assets like cryptocurrencies. Over time, as its potential for other applications became clear, blockchain lent its hand to a number of different applications and industries.
Maintaining Healthcare Records
The healthcare industry requires a robust system that deals with sensitive patient data, which requires utmost security. By using blockchain, it is possible to create a decentralised system for managing healthcare records. This not only ensures data integrity, accessibility, and privacy but also allows interoperability between different healthcare providers.
Voting Systems
Many countries in the world cannot conduct free and fair elections as existing systems are riddled with manipulation, fraud, and disputes. Blockchain can be used to turn this into a transparent and secure system. When applied correctly, it can be used to conduct elections in a fair way, ensuring voter privacy, eliminating duplicate votes, and preserving immutability.
Protection of Intellectual Property Rights
Protecting intellectual property rights has become crucial in today’s digital age. By using blockchain, this system can be decentralised and made tamper-proof. This makes it ideal for registering and protecting trademarks, patents, and any type of copyright. Well-designed blockchain platforms can enable creators to track usage and prove ownership.
Supply Chain Management
Many companies require supply chain management for managing different stakeholders, intermediaries, and documentation. Blockchain technology can be used to streamline this process by providing an immutable record of every step, from production to delivery. It thus eliminates the possibility of fraud, enables traceability, and ensures the authenticity of products.
Internet of Things (IoT)
The Internet of Things is one of the biggest innovations in the tech world. However, the technology still suffers from minor setbacks that need to be addressed. By using blockchain technology, we can access smart contracts, peer-to-peer transactions, autonomous operations, and device identity management, which can greatly improve the IoT. It can also help make IoT more scalable in the future.
Popular Examples of Blockchain Applications Outside Cryptocurrencies
With the potential of blockchain technology being recognised by experts everywhere, it has been applied in many scenarios across many industries and sectors.
- Blockchain has been applied by IBM Food Trust, which allows participants in the food supply chain to track the journey of products from farm to table. It does a great job of enhancing food safety, reducing waste, and mitigating any issue that comes up.
- The national healthcare system of Estonia uses a blockchain-powered system to secure healthcare data. This gives them easy access to medical records, consents to data sharing, and maintains overall control over their health information.
- Bitmark is a blockchain-based platform that allows creators, photographers, and artists to timestamp their work on the blockchain, enhancing authenticity and ownership.
- A successful pilot project was conducted by the government of West Virginia in 2018. This pilot used blockchain technology to create a voting system for military personnel to cast their votes overseas. This reduced the risk of fraud to a large degree, creating a secure and transparent voting system.
- IBM and Maersk formed a partnership for a project called TradeLens. It utilises blockchain technology to digitise and automate several global trade processes. Participants such as shippers, port authorities, customs agencies, and others can securely exchange information and track shipments.
Conclusion
Contrary to general opinion, blockchain technology has a lot of uses beyond the underlying technology of cryptocurrencies. The examples mentioned above only skim the surface of the vast applications of blockchain technology throughout the world.
Frequently Asked Questions
When Was the Concept of Blockchain First Conceptualised?
While Satoshi Nakamoto is credited with using blockchain for the first time with Bitcoin, the concept was actually first introduced by W. Scott Stornetta and Stuart Haber in 1991, who were on a mission to create a system where document times could not be modified.
What Is Block Time?
Block time refers to the time it takes for a block to be added to the canonical blockchain. Depending on how a particular blockchain network is created, the block time can range from mere seconds to multiple minutes.
What Are Private Blockchain Networks?
As corporations and other administrative bodies started realising the benefits of distributed ledger technology, many started investing in private projects utilising blockchain technology called private blockchain networks. Some examples of private blockchain networks include Hyperledger and Ripple.
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