In the past few years, there’s been growing interest in blockchain, a record-keeping technology that made much fuss in the IT industry. Some say many issues need improvement, while others immediately participated in the blockchain adoption to their businesses. But one thing is sure – it has potential.
Basing on a peer-to-peer network, this distributed ledger technology (DLT) creates a new world of safe transactions. Here, decentralization and transparency are the most vital qualities – it’s a blockchain revolution.
Get to know Blockchain technology along with examples, applications and benefits that it brings. However, I’m not focusing on how a blockchain solution works but rather on its applications and perks.
Blockchain, or distributed ledger technology, is a particular type of database in which information is stored in specific groups, called “blocks” that are chained together. When new information is introduced, it’s entered into a fresh “block” and connected to the previous one. In that way, everything is in chronological order.
By its nature, this database can store an enormous amount of information that is accessible for many users at once. Also, blockchain can be used as a ledger for any details. However, one of the most popular uses of blockchain is for financial transactions.
When it comes to data access, every “block” is permanent and sequential in a block structure. That means we can’t change the entered records since each previous “block” must also be modified.
Moreover, no centralized authority takes care of the information but rather a group of participants who store and manipulate the data. But, again, only those who are entitled to it. Each of them takes part in the blockchain administration and can view an entire history of transactions. That means every transaction has to be confirmed and verified by the blockchain network members before it’ll be added to the chain.
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Blockchain technology was a revolution when it comes to its decentralized nature. Data safety is one of the primary concerns in most industries – cyberattacks, data breaches, invasion of privacy. It’s all there. So the fact that blockchain gives the process an additional layer of security makes it more special. Why is blockchain important? Let’s see.
You can say that there’s a minor voting system involved when adding a new “block”. Namely, no new or altered data won’t pass through the system without the members’ approval. Each change has to be verified. Thanks to that, the transactions are safer.
Because of blockchain-based digital identity, all the necessary information is there. Hence, no more paperwork and looking for files. Now, everything is in one space, which makes the process more efficient.
In terms of virtual currencies, it protects the consumer against losing money if the financial institutions (whether it’s a company or a bank) that use blockchain disappear or go bust. Concerning the information itself, blockchain facilities its flow and grants access only to the verified network members. In this way, the data stays confidential and yet, transparent for group participants.
Changing or covering up the information is somewhat problematic, as every group participant can view all the transactions. It’s all about the peer-to-peer network. The result? No third party (which brings down the transaction cost) and the possibility of fraud is less likely to happen since any alterations will be deducted within a few moments.
Sidenote: However, you should keep in mind that there’s 51% attack in which the attacker who has more than half of the total computing power on the network can forge consecutive blocks. Hence, small projects aren’t so safe because it’s relatively easy to get more than half of the computing power in them for a while – basically, the bigger group, the more secure the project.
The secret of blockchain technology lies in its decentralized character. This allows transparency, increases security and facilitates accessibility. And because of this blockchain strategy, it may and is used in many different industries. Let’s consider the selected blockchain applications and how the technology can transform and help businesses in their internal processes.
Blockchain technology would make the voting system a transparent and efficient process. Also, we’d eliminate the possibility of fraud and get a chance of getting the results right back.
One of the most known examples of cryptocurrency is the Bitcoin blockchain. As I said before, thanks to blockchain, cryptocurrencies can operate without a third party, which in this case are banks. Hence, in all Bitcoin transactions, the sensitive data is secured as there’s no external risk that something happens to the third party.
As for the healthcare business, blockchain also has a lot to offer. First of all, in terms of the exchange of information concerning a patient’s health. The record with sensitive data would be available only to those granted access, but it’d give all the necessary information. Thanks to this, it’d be possible to track the disease’s development and many more better.
In this case, we have third parties removed, which naturally translates to no additional fees for carrying out the service when the transaction occurs. Moreover, adopting blockchain by banks can significantly shorten the time of transactions and, at the same time, do it more securely. One of such example is RippleNet – this cryptocurrency was adopted by several banks already.
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