Best Uses of Blockchain Technology In The 21st Century
By Joshua Jogo
BCT has become widely popular in past few years with many companies getting into it and researchers exploring it. BCT has seen its application in industrial, social, and financial sectors. Although the technology is its early stages of development, it still can be used for a variety of real life applications. Several innovations have been seen in the blockchain architectures and applications. BCT is a disruptive technology that supports decentralization and open source development.
The first adoption of BCT was done by Dutch banks that experimented with Bitcoins. Thereafter, banks began to recognize decentralized cryptocurrencies as the unit of money. BCT grew beyond Bitcoin and started disintermediating non-financial information transactions. Thus, the application of BCT widened and it got adopted into a number of different industries including logistics, healthcare, energy, manufacturing, and telecommunications.
BCT has a number of technologies that work in combination to deliver business applications. These technologies can include cryptographic has functions, databases, consensus algorithms, a and decentralized processing. The database nodes of BCT can be controlled or uncontrolled. Bitcoin is an uncontrolled system of database nodes which operates over the internet and uses a distributed file that keeps flowing over the systems. At each node, a complex mathematical procedure is run and the output of the same is written on the blockchain. Each operation that a person performs on these nodes is marked by a digital signature which gets recorded in this chain. Blockchain acceptance in number of businesses as a cryptocurrency has enabled creation of several systems and platforms. Many start-up companies are using this opportunity to explore BCT including those in logistics, agriculture and food business.
Supply chains today face several issues related to information that is exchanged between partners. This could be related to consumers, products, logistics, food safety, and more. When considering the food supply chain, consumers have major concerns with the safety and sustainability of the food items. Thus, they look for more information about the food chains for assurance. However, because of the length and complexities of the agrifood chains that sit between consumer and actual producers makes it difficult for consumers to get their questions answered. The demand for the food is only increasing and thus, the need for transparency is increasing. People do not have trust on the quality of food as they observe frauds in labelling and adulteration. In addition to these, there could be some information problems such as frauds, errors, integrity of records, and more. These problems pose difficulties in agrifood chains and threats to food quality and sustainability. Food integrity is a major concern in these food chains. It refer to the authenticity and fairness of food in its value chain in the digital and physical layers. The digital should be able to provide trustworthy and reliable information while in the physical layer, the origin of the food needs to be reliable. Block Chain technology can help in maintaining records and facilitate its sharing in the food value chain. This can bring transparency into the system and build trust.
Blockchain technology is the tech upon which the cryptocurrency Bitcoin was built. However, cryptocurrencies and money transfers aren’t the only uses for blockchain technology. The use of blockchain technology has been evolving in the decade since the release of the first blockchain in 2009, which was created by Satoshi Nakamoto as part of Bitcoin. There are now a variety of uses for blockchain technology.
A blockchain allows for the maintenance of a growing list of records in a distributed database. Each record is a block, which is linked to the previous block and contains a timestamp as a record of when it was created. The information in a block can’t be changed without breaking the links, which makes the chain secure by preventing hacking. Proof-of-work consensus-driven blockchains such as those used by cryptocurrencies like Blockchain and Ethereum must have blocks cryptographically proven as correct (mined).
Blockchain technology is being used in a number of ways, and there are some key uses for it in the 21st century.
Cryptocurrency and Money Transfer
Cryptocurrency was the first use for blockchain technology, and it’s still one of the primary ways that it is being used today, more than a decade after the first blockchain was released. There are various cryptocurrencies built on blockchain technology, including Bitcoin, Litecoin, Ethereum, and many others. The list of currencies is growing all the time. Cryptocurrencies make it easy for both individuals and businesses to handle money transfers online, keeping everything secure. Wallets can be created quickly and don’t have the same stringent requirements as bank accounts and other financial products if they only use cryptocurrency. Wallets are protected with private keys, while public keys are used to transfer money.
Smart contracts are a method of creating and enforcing a contract using blockchain. The rules of the contract are enforced on a blockchain to remove the need for a middleman. It also provides a higher level of accountability as no records on the blockchain can be changed without it affecting the rest of the chain. Smart contracts are being used to help improve compliance and security when creating contracts. They are useful for governmental bodies and businesses in sectors such as healthcare where compliance and secure records are vital. For example, smart contracts and blockchain technology can help to make the transfer of sensitive medical data more secure or can be used in real estate for title issuance.
Internet of Things
The internet of things (IoT) is the term used to refer to different devices connected via the internet. While the IoT has the potential to provide lots of uses, it can also complicate things where security is concerned. Many different connections mean more opportunities for hackers to try and gain access. This is where blockchain technology proves to be useful, helping to make everything more secure and prevent hacking. When using blockchain for IoT purposes, it adds another layer of security by improving transparency and lowering the chances of corruption. Companies are using blockchain to make their IoT products and services more secure. It’s possible to make IoT devices and systems virtually unhackable using blockchain technology.
Personal Identity Security
Identity theft and fraud can be a problem for anyone, especially online. Blockchain technology is being used to increase the security of personal information so that the chance of identity theft is lower. A decentralized blockchain ledger is used to store personal data and prevent fraud. Various private companies are already using this technology, including in fintech and IT. Government departments and services can also make use of blockchain technology to protect citizens. Large amounts of identity fraud occur every year, but with the right technology, this can be changed. There are even some official government programs using blockchain technology to help keep official documents, such as birth and death certificates, more secure.
Logistics and Supply Chains
In logistics, a lack of communication and transparency can often cause problems. Managing logistics and supply chains can be difficult when there are different parties that need to be kept informed, and there are many different stages of the process. Blockchain helps to solve these problems by providing a single place to verify data. Communication issues can be prevented by creating a ledger that can be trusted. Blockchain can also be used to make logistics and supply chain management more organized. Using automation, those in the business can save time and money. Large logistics companies such as DHL are already using blockchain to meet the needs of their customers.
Blockchain can be used to help governmental bodies achieve various goals. In addition to using blockchain technology to help secure documents, governments can use blockchain to make bureaucracy more efficient than ever. The tech can help to make processes faster and more secure, using automation and creating secure records. Blockchain technology also has the potential to increase accountability, with trusted records of events and information, and the use of smart contracts. It can even be put to use for voting purposes by providing security and trust that might encourage people to vote. Blockchain is being used by several states in the US to offer technology such as mobile voting platforms.
Another industry where blockchain can prove to be useful is in the media. Privacy, intellectual property, and royalty payments are just some of the issues that commonly need to be addressed in the industry. Blockchain can help with all of these using different tools, especially when dealing with digital assets. There is a lot of potential for media companies to use blockchain technology to solve problems and improve the efficiency and security of a variety of processes. Blockchain technology can be used to track customer activity, create smart contracts, prevent plagiarism, and even empower people to create original content. It can be used to recognize artists’ original works and ensure they receive the royalties that they are due.
Blockchain technology is used in a broad range of ways in different industries to solve a variety of problems. It is being used in new ways all the time, as blockchain-based technology develops.
Global Blockchain Blogger