on 25 February 19
A blockchain, on a basic level, is a decentralized system of recording, managing, and authenticating data. No single entity owns or controls data within a blockchain network. The need for a central third party is supplanted by 'smart contracts' and algorithms. This makes blockchain networks robust systems capable of verifying and authorizing transactions automatically.
Data generated from transactions within a blockchain system is stored in a cryptographically secured ledger. The encryption shields information from hacking and manipulation.
All interactions in the network can be viewed publicly. That makes blockchain systems transparent and accurate.
The growing adoption of blockchain technology is caused by demands in different industries. Here are some of the industries that are going to change due to the blockchain technology.
Information stored in blockchain networks is secured and encrypted in the best way possible as of this moment. This makes blockchain systems superior to conventional alternatives.
Here data is decentralized, making a wide scale cyberattack very hard. Another advantage of blockchain systems is that they use cryptographic algorithms to authorize access. The automated nature of the networks reduces chances of human errors and manipulation.
Supply Chain Management
Supply chains are the bedrock of modern day business. The industry's bottleneck, however, is that it's built on systems that rely on manual processes. As a result, supply chains are layered with dozens of intermediary third parties (regulators, government agencies, banks, etc.) that make the whole chain inefficient. The inefficiencies increase costs and slow down the momentum of doing business.
Blockchain technology presents a massive opportunity for the industry to automate and streamline processes and cut out third parties from the chain. With a blockchain system, the data generated in supply chain can be accessed through a digital ledger. This allows users to execute smart contracts and hastens transactions that involve multiple parties.
Have you ever bought a house? If you have, then you understand the tones of paperwork you need to walk through in order to complete a transaction. Now imagine a world where you don't have to worry about that!
Blockchain systems can reduce paperwork by allowing buyers and sellers to complete transactions through a shared and secure digital platform. Documents can be filed, managed, and secured through blockchain technology.
Think of a digital database filled with property deeds, land titles, loan documents, liens, and other relevant information, all of which are easily accessible, secure, accurate, and verifiable.
Blockchain based real estate platforms can also eliminate the escrow process. The technology can allow users to create 'smart contracts' that release funds only after certain conditions have been met.
The blockchain platforms can also reduce the cost of real estate transactions by reducing the level of influence by third parties such as real estate agents. Companies like Ubitquity are in the process of establishing such platforms. In a few years, blockchain systems may become the industry standard of making fast and secure real estate transactions.
When it comes to storing and sharing medical data, the healthcare industry is in need of disruption. The potential for fraud, errors, and loss of important data has cultivated deep distrust between consumers and healthcare providers.
Blockchain technology can potentially reestablish trust by creating a secure ledger of medical records that can be accurately transferred, and that gives doctors and other authorized parties access to critical data. Startups like Ontology are already working on developing blockchain technology to create multi source identification platforms that can be used across industries.Finance And Banking
Cryptocurrencies are the best known application of the blockchain technology, and while nowadays they’re mostly being used as get-rich-quick schemes by people who like to gamble with Bitcoin and its dynamic value, they are capable of so much more than that. Some experts predict that within the next decade, the current fiat systems of finance will be replaced by digital assets like cryptocurrencies.
A more accessible blockchain based finance system will also empower the next generation of entrepreneurs. For instance, with cryptocurrencies like Bitcoin, one can send currency across borders instantly. This is more efficient and cheaper compared to the current monetary systems.
The energy industry is highly regulated and centralized. Large corporations control it. However, the rise of sustainable and renewable energy creates a need for an open and accessible energy market.
For instance, homeowners with solar energy usually sell excess energy back to the grid. But this may soon change as the large energy providers are trying to eliminate this practice through legal action and lobbying.
Blockchain technology can transform the energy industry into an accessible, user driven peer-to-peer community. Through blockchain systems, neighborhoods can buy and sell energy to each other for profit. Startups like LO3 Energy are working on developing a blockchain based energy distribution systems.
As blockchain technology evolves, it will be adopted in more industries in more dynamic ways. According to IDC, the global spending on blockchain technology is expected to hit $2.1 billion by the end of the year.
Share your perspective
Share your achievement or new finding or bring a new tech idea to life. Your IT community is waiting!