Definition and throwback
A blockchain is essentially an open decentralized database file for storing data or information. The file is made up of data blocks that are linked to one another to form a chain. Each block contains data (such as transaction data) as well as a record of when it was edited or created.
Because blockchains are a decentralized method of storing and accessing data, they are extremely safe – unlike a centralized database, there is no single point of entry for attackers. This makes it very handy for securely documenting transactions.
An unknown individual named Satoshi Nakamoto allegedly created bitcoin in 2008, based on blockchain technology. He then released the specifics in “Bitcoin: A Peer to Peer Electronic Cash System.” In 2013, a whitepaper dubbed “Ethereum Project” indicated that blockchain, besides securing digital money, may be used for more than simply bitcoin.
In this post, we will try to cut through the hype and check out some more practical applications of blockchain technology.
So, where can it be applied?
So, these blocks that we mentioned earlier can literally store anything. Anything meaning your transaction history, dates, money, time, numbers, and anything else.
Considering this diversity of data it can handle, it leads us to the conclusion that it can find its place in many industries and sectors.
Cryptocurrency & Financial sector
It is true that Elon Musk described the current crypto market with a one-liner: Cryptonight. Yet, having in mind that the first use of blockchain technology was to be the foundation of Bitcoin, it would be unfair to just ignore the role of blockchain here.
This technology also safeguards the bank’s and the customer’s personal information. Blockchain technology allows for secure transactions without requiring much work. It is likely to minimize costs and speed up money transactions by utilizing blockchain adaptation. It enables financial transactions to be carried out more safely and efficiently.
Just to take one example here, Barclays has also launched a variety of blockchain projects directed at tracking financial transactions and preventing fraud, among other things.
Blockchain technology has also appeared on the radar of several governments already. The ones including the United Kingdom, Estonia, Honduras, Denmark, Australia, and Singapore, have made efforts to capitalize on the promise of blockchain technology.
A couple of uses of blockchain that are directed towards ensuring trust between governments and its citizens are improving the voting system, as well as the storage of various data.
Namely, voting fraud or manipulation would be impossible with blockchain technology.
Similarly, the government may also employ blockchain technology to safeguard public records. This will improve the efficiency and dependability of the online civil system. Using its decentralized technology, the government can assure the security of every citizen’s data and give them complete authority over their data.
Blockchain technology is also transforming the healthcare and pharmaceutical industries and the areas of its application are numerous.
Starting from the always sensitive topic of medical records, with blockchain in healthcare it would be possible to transmit patient medical records while increasing transparency.
There are already developed blockchain products which track the progress of patients after they are dismissed from the hospital.
It can also be used to regulate the temperature at which medicinal items are stored. This blockchain technology may then be used to track and trace the transportation of pharmaceuticals.
The other side of the coin
Blockchain is frequently hailed as a game-changing technology, and in many respects, it is. However, it is not the solution for all of the world’s ills as many preachers would have you think and it would simply not be the whole story.
But… we’ll leave that for one of the next posts and in this one we will end on high notes and in praise of blockchain as it really positively affected many areas of many industries.
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