What is Blockchain?

The principles of Blockchain technology are not as alien as they may appear. A Blockchain is a decentralized and secure database built over a secure network used to store data and relay information. Blockchains record and relay information and transactional data in blocks. Parties involved in these transactions can remain anonymous while enjoying security, transactional transparency, speed, and cost efficiency.

How Does Blockchain Work?

What does a blockchain look like? Data in a Blockchain gets recorded in a linear matter, with each new block within a Blockchain containing data from all previous blocks. Imagine a block to be sort of like a sheet of paper, filled from top to bottom and front to back, with a date and time but with a long code written across the sheet.

The data within these blocks is encrypted through the use of complex cryptographic principles and security algorithms.

Before being added to a Blockchain, transactions must first pass validation. This validation is performed by miners. For their efforts, miners enjoy monetary reward in the form of cryptocurrencies.

As many of our frequent readers may have noticed already, there is quite a bit of hype surrounding the uses of Blockchain technology - but why? For starters, it's a technology that will change the world. It can provide decentralization. The data contained and relayed within a Blockchain architecture cannot be controlled by a single entity. Transactions and information stored within are immutable and transparent. Once a transaction is added, it can't be changed, taken down, or hidden. With regard to transparency, anyone can see what was sent and when. One can assume that there are two individuals behind a Blockchain transaction, but not exactly who and why.

Popular Blockchain Use Cases

Blockchain technology, with all its features, can be quite helpful in targeting and solving a slew of issues that impact our lives. Most of them pertain to transparency, trust, data security, and transactional accuracy. As well, there is the avoidance of a need to rely on third parties, and much, much more.

Let's start with the supply chain industry - one that envelops everything from food and wine, to the screen you're reading this on.

Blockchain supply chain use cases: Through the use of Blockchain technology, manufacturers can identify the origin sources of goods, deliveries, and production activities all through a supply chain management process. This can give average consumers the ability to confirm the source of goods and items that they buy, which can go a long way toward pushing back on counterfeit items or misrepresented foodstuffs.

Blockchain in healthcare today: Another industry for which integrity and transparency provided by Blockchain is important is the pharmaceutical industry. When you're dealing with medical prescriptions, drug records, patient treatment data, and the transportation of expensive medical equipment and other medicinal items that can spell life or death for a patient – transparency, accurate data, security, and trust are absolute musts. A Blockchain provides all of this.

Blockchain and energy management: The energy sector is also worth mentioning. For instance, Power Ledger is a project that uses Blockchain as a solution that allows users to trade electric power with one another in exchange for crypto payments. The Power Ledger platform that enables Blockchain solar energy management allows users to sell excess energy reserves in solar panels for profit. This could cut back on the authority of middlemen and electricity providers, as users would function in an environment wherein energy can be shared amongst one another in a transparent manner.

Aside from these industries, there are many more that may see applications of this technological revolution, including real estate, music, politics, education, charity donations, and many other potential industries. For instance, we have:

• Aventus is a Blockchain project that grants its users the ability to redefine ticketing supply chain rules.
• Rentberry is a company that utilizes Blockchain technology to make the process of obtaining a long-term rental space more secure, transparent, and cost-efficient.
• Helbiz leverages Blockchain technology, decentralized cloud servers and smart lock hardware to end the need for intermediaries and third-party involvement in car rental processes.
• HempCoin aims to help provide banking services for the cannabis industry by utilizing Blockchain and cryptocurrencies.

Potential Use of Global Blockchain Technologies by Industries and Society

There are myriad sectors that can, and do, derive benefits from blockchaining, ranging from entertainment to philanthropy.

Financial Inclusion: There are many individuals living in underdeveloped countries without access to banking services. Blockchain technology can help solve this problem, as it can provide access to transactions and end the need for a physical infrastructure. This is to say - Blockchain powered financial inclusion. Aside from this, Blockchain technology can be used to improve transactional speeds, and decrease banking fees and the possibility for human error or mischief when handling finances.

Democracy and governance: Blockchain and governance go together quite well. Voting, crowdfunding, communal services, registrars, and more can be put on a Blockchain database for increased transparency.

Internet of Things (IoT): IoT Blockchain uses can help reduce data lapses and improve the transparency and security of communication between devices as well as data storage. The future of Blockchain in the IoT industry is one with many benefits.

Retail: Blockchain and retail go hand in hand. The distributed ledger technology can be used to improve supply chain goods tracking, and to prove the authenticity of goods by providing the ability to discern fake items from authentic ones by scanning a barcode.

Insurance: There are many Blockchain insurance use cases. The secure technology can be utilized to both detect and prevent fraud in the industry, and improve organization with regard to property insurance claims. It can also simplify user onboarding for new policies, or even open up the possibility of having a universal insurance database.

Digital Identity: The technology can significantly reduce identity theft and fraud, and promote transparency. It can also reduce the threat of third party involvement in sensitive personal data.

Agriculture: Despite there being fewer uses of Blockchain in agriculture than in other industries, progress is still being made and is focused on eliminating the need for middlemen in agricultural supply chains. Additionally, many records on food certificates, sustainability, and safety are recorded on paper and in private databases. This method of data storage can lead to excessive managerial costs and opens up a vast amount of opportunities for corruption and fraud. Blockchain tech can aid greatly in reducing fraud, decreasing costs, and promoting efficiency.

Education: Blockchain in education can be used to create immutable performance records, transcripts, diplomas, certificates, etc. It can also provide more efficient means of accessing records and can also be used to help build recognition of achievements. The social impact of Blockchain tech is astounding.

Real Estate and Land Rights: The future of Blockchain technology can help effectively store information on purchased land, record ownership certificates, and provide a decent amount of legal and economic safety for real estate owners and land holders. This would also help cut out real estate fraud and bad actors. Additionally, there are Blockchain projects that focus on tokenizing real estate properties to allow large quantities of individual investors to get a share of that property for future investment returns.

Entertainment: Blockchain can have a significant impact on issues that plague the entertainment industry such as copyright infringement, piracy, and content consumption. Through the use of the technology and cryptocurrencies, artists, writers, and musicians could distribute their creative content on a global scale, while retaining full control over said content.

The future of Blockchain technology has the ability to end severe issues experienced by modern banks. As it currently stands, banks and their personnel manage all client funds and handle money transfers. Thus, they act as intermediaries. Where there is human involvement, there can be lapses in security and transparency. By their nature, Blockchain databases are more secure and transparent, and would reduce the possibilities for record-keeping errors as well as make transactions faster and cheaper for banks due to their decentralized aspects. According to IBM, banks are lining up to adopt the tech.

Does Blockchain Have Potential for International Development?

There is a future in our world for international Blockchain development and use. It's quite clear that there is avid interest in the technology, stemming from regulatory attention, the projects that garner astonishing financing, the cryptocurrency market's growing market capitalization, and nations like Estonia getting behind the technology and integrating it with all vital aspects of a modern society.

It's quite clear that there is avid interest in the technology, and many facts prove it. Blockchain enjoys a lot of attention from regulatory bodies, and there appear more Blockchain-powered projects that garner astonishing financing from investors. Additionally, the cryptocurrency market's capitalization is growing and there are progressive nations like Estonia that get behind Blockchain and integrate it with all vital aspects of a modern society.

One thing is, however, certain that professionals and companies that take advantage of Blockchain technology now, and take the time to fully understand all of its complexities and benefits, will without a doubt have a dramatic competitive advantage in the future. Considering the fact that the technology's implementation can be a daunting task, it makes sense to seek out expert Blockchain development services.

You will find out other interesting details here: The Future of the Blockchain Technology: Use Cases, Geographical Expansion, Potential Risks and Challenges