The world is changing as we know it with the inception of cryptocurrencies, web 3.0, the metaverse etc., and all this is owed to blockchain technology. But blockchain technology is more than just digital currencies and whatnot. There are multiple ways it can be infused into real-life everyday cases.
Today, we’ll discuss five ways blockchain technology can be applied.
What Is Blockchain Technology?
Simply put, a blockchain is a digital ledger and collection of records linked together which cannot be altered.
As we have seen and even experienced with traditional banking, various issues surrounding it may deny a transaction, such as hacking, technical issues, exceeded transfer limits or added transaction charges. With all these problems, cryptocurrency was introduced. Thousands of cryptocurrencies are currently in existence and built on blockchains.
Blockchains are also known as distributed ledger technology, and this is because they cannot be deleted or changed. They are highly secure, and it is unimaginable for the system to be changed, hacked, or manipulated as the data within the blocks are protected by complex algorithms.
When crypto transactions are made, the record of it is stored on a block. This block contains how much crypto was sent and how much crypto the sender and receiver have. Each block is tied to the ones before it and after it. When an asset moves from one place to another or ownership changes, these blocks form a chain.
Each block confirms the time and sequence of transactions, and the blocks link securely together so no block can be altered or inserted between two blocks.
A Blockchain system runs on the internet, on a peer-to-peer network of computers that all operate the protocol and have the exact duplicate copy of the transaction ledger, allowing for peer-to-peer value transactions without using a third-party by machine consensus.
There are various Blockchain technologies- public, private, hybrid, or consortium.
Benefits of Blockchain Technology
- With blockchain, centralized entities and intermediaries are not required, as the platform is decentralized.
- Recorded data cannot be replaced or erased. Therefore, the blockchain prevents the alteration of data within the network.
- There is no censorship in blockchain technology since it does not have authority over any single party. Therefore, nobody and no organization can hold up network operations.
- Transactions done on the blockchain are transparent and can therefore be tracked easily.
5 Ways Blockchain Technology Can Be Applied In Real-World Cases
1. Money Transfer:
Blockchain technology has really enhanced the finance world with the inception of cryptocurrencies. The blockchain has made transferring money much easier, cheaper and faster. With blockchain technology, we can now send and receive cryptocurrencies from anywhere and everywhere in the world.
In countries like the United States of America, money transfers through traditional banks can take days. Still, cryptocurrencies can be sent and received within minutes to hours, depending on which crypto coin is sent and how much network fee is paid.
Healthcare professionals can use blockchain technology to store and share patients’ information on the digital ledger with other healthcare professionals and organizations such as hospitals, diagnostic laboratories, pharmacies, and also physicians.
In a report by ScienceDirect, it was mentioned that blockchain has an array of applications and functions in healthcare. The digital ledger technology aids healthcare researchers in uncovering genetic code by assisting in the safe transfer of medical records of patients and running the supply chain of drugs.
3. To Build A Strong Voting System:
Most developed countries have been using the electronic voting system for a while now, while some still use the paper-based voting system. Both voting systems are prone to malpractice due to hacks and ballot box thefts. By using blockchain technology, the database of votes will exist on the chain that millions of nodes will support at the same time. And because of the powerful encryption and decentralized nature of a blockchain, the database will be impossible to corrupt, and all voting records can be verified easily. Additionally, third parties or intermediaries can’t remove or alter the network.
A joint study conducted by Accenture and logistics giant DHL found that there are over 500,000 shipping companies in the United States, causing data storage and issues with transparency. In addition, blockchain is said to be able to solve several logistics and supply chain management problems.
The study shows that blockchain enables data transparency by bringing to light a single truth source. Blockchain can build strong trust in the logistics industry by acknowledging data sources. It can also make the logistics process more automated, possibly saving the industry a lot of money yearly.
Major logistics companies like DHL have adopted the use of blockchain in keeping records of shipments and keeping up the integrity of transactions.
5. Store Personal Information:
The blockchain is secure and impossible to hack; this makes storing your personal information less daunting. Currently, most people’s data are stored on records that are not entirely safe and possible to hack.
In industries like healthcare, travel, education, and finance, blockchain technology can improve access to identifying information while securing it.
Blockchain technology goes beyond cryptocurrencies and smart contracts; they can be implemented in various sectors and can be used to improve life, from daily activities to the most complex things.
The blockchain has helped secure information of people and even organizations, and most countries and firms are already adopting the use of this technology. We look forward to how blockchain will be implemented in various industries across all sectors of life.