It is hard to exaggerate the role of blockchain technology in the modern IT industry. A lot of new opportunities were discovered thanks to the blockchain that undoubtedly would influence modern life.
The financial sector has already implemented many innovative ideas based on the bitcoin. Whoever Satoshi Nakamoto is, their article dedicated to peer-to-peer electronic cash system rocked the digital world upon its publishment. Currently, cryptocurrencies and blockchain are the main point of interest for entrepreneurs and IT experts all over the planet.
The guides on how to use blockchain technologies are in trend now. It makes sense to use its brilliant capabilities and strengths for the development of other branches of industry, and here is a short intro to the topic.
Blockchain and How It Changes the World
Blockchain is actually a notable breakthrough that changed a usual understanding of ways to store and transfer data completely. Now, transactions and data exchange occur with a help of mass collaboration and high-quality code. So no insecure third parties or institutions are included in the process. Here are some considerable blockchain features:
This is an open source technology that enables reliable recording of ANY kind of information;
It is nearly unhackable: blockchain uses a method of affirming the data stored in links of the “chain” with cryptographic methods.
Blockchain’s potential of changing the varying industries is obvious. Here are the main traits that provide blockchain with the ability to transform any business model:
Decentralization As a typical blockchain implementation is a distributed database, it provides data storage across the wide user-based network. Two parties can share information without any intermediaries. Once the transaction occurs, data is recorded in all the registers. If any authorized changes are made to one of the links, all of the copies are updated, too.Blockchain users present themselves a mechanism that takes part in a creation of the global shared system. With decentralization, all of the risks connected to the control of the mechanism by a single person (or entity) are minimized.
Trustability Based on public-key cryptography method, blockchain data storage is completely reliable and trustful. Any entered information and each transaction is verified with the special algorithm. All the data is highly secured. And, as the system is decentralized and none of the third parties are included, blockchain is trustful.Due to decentralized storage and trust issues resolved because of complete informational security, blockchain provides innovations to every single branch of the information industry. Let's review different blockchain use cases and consider the main benefits of business digitalization.
Particular Industries Transformed by the Blockchain
Some of the entrepreneurs and institutions have already started to think how to use blockchain technologies in their processes. Here are the real use cases of blockchain that demonstrate potential ways to do it:
Legislation and Government Smart contracts are one of the examples of blockchain technology implementation. They help tracking and storing the data in the way that makes legislative control unnecessary. Going back to the security and trustability mentioned above, blockchain enables personal data storage with biometric authorization.
Healthcare In the era of digital technologies, patients expect from healthcare industry, first of all, the seamless access to their personal data, as well as test results and treatments details. At the same time, this data should be highly secure, and no third parties should be included in the communication between the patient and the doctor.Recent research on the application of blockchain into the healthcare industry claimed that this would allow creating a unique framework with consistent permissions. This framework would provide the precise tracking and security of all of the patient data.Automatic updating of the information in blockchain would be extremely useful also for insurance companies. With blockchain, the need for the authentication of the data disappears, so insurance providers can save funds.
Energy Delivery Energy delivery is a complicated process. It takes much time and bears a potential risk. Due to the remoteness of buildings or any other objects that require energy and a large number of process participants, frauds are almost unavoidable.And here is how blockchain can be used: electricity can be provided to customers on peer-to-peer conditions. So the necessity to use the central exchange would disappear. Also, data and payments processing through blockchain would lead to better performance and more effective delivery. >
Supply Chain This branch of industry would be affected by the blockchain positively as well. Supply chain often suffers from the lack of coordination. Possibility to reduce the number of paper documents, and “point-to-point” based communication between the parties would lead to the improvement of shipments.
Retail Entrepreneurs are interested in their reputation and supplying the buyers with the high-quality products. Customers, however, mark that in too many cases product they paid for differs from the one that was delivered. The authenticity of the products can be proved with the special blockchain scannable tags technology. Additionally, tracking of the deliveries would be improved because of supply chain innovations mentioned above.
Foods As modern people are extremely attentive to the origin and contents of the food products, a question of how to use blockchain technologies can also be strongly attributed here. For example, IBM Blockchain platform has already built the cooperation with Walmart company. It allowed reducing the time required to track product’s supply chain greatly. Verification of food sourcing with blockchain allows for the strict compliance with the standards.
Travels and tourism How can blockchain be used in travels? One can use travel IDs based on blockchain instead of any other traveling documents, cards etc. This would provide the data security and save time for all the parties.
Real Estate Minimization of paperwork in real estate deals is a large step forward. Blockchain enables verification of ownership, documents validation and other time-taking processes to be easy and quick.
These are main examples of what is blockchain used for. Still, the number of potential innovations is unlimited and completely unexplored yet.
Final Thoughts on the Blockchain Explosion Blockchain changes the world because of the features of data decentralization together with exceptional security. This is why every branch of business can be transformed into the optimized and greatly improved form of itself. Fraud and security risks, additional third party expenses, and other factors can be reduced to the minimum possible level. We are now facing a one-in-a-lifetime change for the entire mankind. Using it properly would lead to great things.