What is blockchain technology?
Blockchain technology is an open, decentralized peer-to-peer network technology. It uses a public ledger which consents two parties to reach common ground of info without allowing full access to anyone.
Basically, a blockchain is an open decentralized database file for storing data or information. The file is made up of blocks of data, and each block is linked to another block, forming a chain. Each block holds data (such as transaction data) and a record of when that block was edited or created. Unlike a centralized database that’s owned by a corporation or agency, a blockchain isn’t controlled by anybody person or entity. The info is duplicated (distributed) in its entirety across many computers, meaning any user can view the whole chain from anywhere, and anyone with the proper cryptography keys can edit the chain. As it is a decentralized way of storing and accessing data. It makes blockchains extremely protected because, unlike a centralized database, there’s no single point of entry for attackers. This makes it particularly convenient for recording transactions in a secure manner.
Use case and possible implementations of blockchain
Blockchain technology is being used in a lot of sectors nowadays. In the near future, the use of blockchain technology in everyday life would be increase significantly. Let us know about 5 top use cases for blockchain technology and its possible implementations in the near future.
(1) Digital Finance and Banking: At present the most popular practical use of blockchain is in digital finance. Financial companies and banks have started to adapt blockchain technology. Financial institutions including Bank of America, Goldman Sachs, National Australia Bank, JPMorgan Chase, Morgan Stanley and others are using blockchain technology for digital finance. This protects confidential data of the bank and customer. Blockchain technology gives the opportunity for secure transactions without having to give much effort. By blockchain adaption it is possible to reduce the cost and speed up money transmissions. It improves the efficiency of workflow. Financial transaction can be done more securely and effectively. Many banks even in the domestic level has adopted blockchain. It can be assumed that in the near future all banks will use blockchain technology.
(2) Government Sector: The Blockchain technology is an emerging technology that’s attracting government attention. Many government entities like UK, Estonia, Honduras, Denmark, Australia, Singapore etc. have taken steps to utilize the potential of blockchain technology. The Government of Dubai is targeting become paperless by adopting the blockchain technology for all transactions by the year 2021. EU about to introduce new legislation that will make investment in blockchain sector easier.
Governments can use blockchain technology to voting system. Computer experts say that attackers can hack the electronic systems so as to control the votes. The distributed ledger technology will defend hackers since the votes will be encrypted. Any voter can easily make sure their votes were counted or not and may even ensure whom they voted for. This technique also saves money for the govt. Blockchain technology would make it impossible for manipulating or rigging votes.
Government can implement blockchain technology for safe storage of government, citizen and finance data. It will reduce labor extensive processes that will make processes efficient. It will help the government to reduce excessive cost relating to management and accounting. It will reduce potential for corruption and abuse. Government can also use blockchain technology it to keep public records safe. This will increase efficiency and reliability in online civil system. Using its decentralized technology, the government can ensure that every citizen’s data is secure and citizens can have full control over their data.
(3) Cryptocurrency: Cryptocurrency is made by with the foundation of blockchain. The use of Bitcoins and other cryptocurrencies such as Ethereum, Dash, Litecoin, XRP, Tether, EOS are increasing day by day. Crypto exchange and transaction have seen significant growth past year. It has the potential to become a new dominant medium of exchange. All cryptocurrency transactions are carried out using DLT (distributed ledger technology) which is the other name of blockchain technology. The cryptocurrency transaction process is completed very transparently. Records of every transaction are stored during a blockchain that anyone can view from any a part of the planet.
(4) Health Care: The healthcare sector is another example of blockchain technology practical application. Preserving all the information about the health of the patients, their privacy, security, etc. is an important issue. This information often includes sensitive information such as medical detail, medical expenses records, medical insurance, personal details which is kept secret from the general public. This privacy is violated as a result of manipulating this information at various times. Blockchain adaption can help tackle this issue.
Clinical research may sometimes have sensitive or crucial information which might be dangerous if fallen into wrong hands. Blockchain technology helps in safe keeping and secure exchange of those information. It is also used to carry out secure transactions to monetize clinical research funds. The blockchain system is being used in the United States to collect information on the distribution and delivery of different medicines used in different regions – whether the medicines are being distributed properly, before or after the time they are arriving at the destination, etc.
(5) Supply Chain: Supply chain sector is another beneficiary of blockchain technology. Few companies such as Walmart is using blockchain for safety tracking of products. Maersk is using blockchain to exchange and keep record of shipping data. British Airways is using blockchain to manage data about flights. FedEx is using blockchain to manage storage and supply. The number of companies using blockchain in supply chain is increasing day by day. Data visibility, full transparency process optimization helps consumers to know more about their products and at the same time it helps suppliers to keep track of their products, demands and management statistically .Soon the supply chain sector will be solely based on blockchain.
Blockchain adaption in supply chain it would increase the transparency between source and consumers. Suppliers can use the blockchain to identify the origin of the materials they need bought. And for doing so, they take help from the blockchain development companies. These blockchain development companies aid businesses by easily verifying the authenticity of their products by using blockchain solutions. It provides companies with the end-to-end visibility of their supply chain by providing data on the status and condition of supply as they’re delivered worldwide.