Blockchain is quickly gaining a lot of popularity. It is one of the most popular technology trends in the world right now. Let’s dive in to understand how blockchain technology can impact the world around us.
Blockchain is one of the most popular technology trends in the world right now. With features such as immutability and decentralization, many businesses and domains have already started implementing blockchain technology. Statista estimates that “by 2024, the spending on blockchain will reach almost 19 billion U.S. dollars”. But how does this technology help different industries? How can blockchain change the world around us? What does its future look like? Let’s find out.
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Table of Contents
- Higher Adoption of Cryptocurrency
- Smart Contracts Will Reduce Costs and Drop Middlemen
- Purchase Vehicles With No Money
- Better Tracking of Supply Chain
- Blockchain in Banking & Financial Sector
- Blockchain in the Energy Sector
- Easier To Treat Health Problems
- Asset Protection With Blockchain
- Easier Digital Voting
- Blockchain and the Internet of Things (IoT)
Let’s get started!
What’s Blockchain Technology?
Blockchain technology is a type of Distributed Ledger Technology (DLT). A distributed ledger is a database to record, shares, and synchronize digital data. This database is shared and duplicated across a network of computers. Those participating in the network can update the data or records in the ledger. It operates without the need for a central authority.
Blockchain organizes data into blocks chained together in an immutable form. Blockchain uses decentralization and cryptographic hashing. This helps in making the history of any digital asset unalterable and transparent.
Read more- Cryptographic Hash Functions in Blockchain
Blockchain technology enables faster and low-cost processing of transactions. It also allows untrusted participants to reach a consensus on the state of the database.
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Blockchain In Action – Example of Blockchain
The most popular example or application of blockchain technology is cryptocurrency. Bitcoin and Ethereum are both cryptocurrencies based on blockchain. Bitcoin and Ethereum are digital currencies exchanged and authenticated by a blockchain.
Why Do People Use Cryptocurrencies?
People use cryptocurrencies because of many of the following benefits:
- Fast payment
- A transaction can occur between people who don’t know each other. There is no need to rely on a third-party verifier
- More secure than regular transactions
- Lower processing cost
Learn more about blockchain, read our post – What is Blockchain?
10 Ways Blockchain Can Change The World Around Us?
Blockchain technology has the potential to change the way pay for goods and services. It can change the way how we save money and do business. Here are the 10 ways blockchain can change the world around us.
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Higher Adoption of Cryptocurrency
Many businesses today have started accepting cryptocurrency payments. Still, for a lot of consumers, it is not easy to carry out cryptocurrency trading. This notion is likely to change as more cryptocurrencies emerge.
We could see the introduction of more digital currencies like Bitcoin and Ethereum. This would result in higher adoption of cryptocurrencies in the coming years.
Smart Contracts Will Reduce Costs and Drop Middlemen
Let’s first understand what are smart contacts. Smart contracts are self-executing programs or codes on a blockchain. They put in place the terms of an agreement between parties. Smart contracts help in streamlining processes that spread across different databases and ERP systems.
Blockchain-based smart contracts help businesses in many ways. They can help confirm loan eligibility and execute transfer pricing agreements between subsidiaries. The use of smart contracts can increase the speed and accuracy of business processes. It can also reduce costs and drop the need for third-party intermediaries.
Purchase Vehicles With No Money
In the future, blockchain can make it possible for you to pay for your vehicles with cryptocurrency. It may also allow you to get money back on that payment through tokenized ownership. You will not need to connect with a salesperson or finance dealer. It would be all done based according to your cryptocurrency wallet in a few minutes.
Better Tracking of Supply Chain
Blockchain can enable businesses to solve issues with real-time data access, partners’ privacy, and traceability. It can help them better track the status updates of the supply chain. It can also help in increasing the security and visibility of the supply chain. Blockchain would also allow businesses and consumers to view how products performed from a quality-control viewpoint as they moved from their place of origin to the destination.
Today, Walmart uses blockchain to set up food traceability systems. The technology enables it to create an automated system for managing invoices and payments related to its third-party freight carriers.
Blockchain in Banking & Financial Sector
Blockchain would make it easier for anyone to exchange money faster and more securely. Here are some of the benefits of blockchain in banking and finance:
- Improved security
- More transparency
- Lower cost
- Faster payments
Blockchain in the Energy Sector
Blockchain could be a great tool to record and ease transactions between generators and consumers of energy.
The use of blockchain in the energy sector could remove the control from the utility companies. This would give more control to consumers over their energy sources. It would allow the consumer to sell excess energy to their neighbors. It would also allow selling to other network participants through automated smart contracts.
Easier To Treat Health Problems
Blockchain can help in removing the paper trail in the healthcare system. It would enable making patients’ medical history more accurate and accessible. A permanent blockchain record owned by the patient will depict the illnesses, allergies, and lifestyle factors. This would enable doctors to diagnose and treat health problems in a better way.
Healthcare providers could also use blockchain to exchange data with each other. It would reduce redundancies and improve the speed of diagnosis It will also safeguard patient privacy.
Besides, blockchain could also help in:
- Tracking the supply chain
- Improving drug safety
- Putting an end to fake medications
- Lower health insurance premiums
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Asset Protection With Blockchain
Blockchain technology can help you protect your assets such as vehicles, property, and land. It creates an indisputable record of ownership of your assets.
How does blockchain protect your assets?
Well… When you sell or buy assets, you will need to transfer or receive a title. Blockchain can store the titles on its network. This will give a transparent view of the asset’s transfer and ownership.
Easier Digital Voting
To cast votes, today, voters need to go to the polling booth. Blockchain technology can help make digital voting with immutability a reality. It can enable voters to log on to their computer or mobile device, verify their identity, and cast their vote. Thus, the voting process would become easier, faster, and more secure.
Blockchain and the Internet of Things (IoT)
Internet of Things (IoT) refers to the network of physical objects with sensors. These devices collect and exchange data with other connected devices and systems over the internet. These devices are prone to cyberattacks. Hackers can gain access to the data that IoT devices generate. Blockchain can help address these issues.
Blockchain encryption can make it virtually impossible to tamper with existing data records. It adds another layer while storing data. This stops hackers from gaining access to the network.
What Does the Future of Blockchain Look Like?
The possibilities of blockchain technology are endless. It has a huge potential to drive major changes across global businesses. Blockchain helps in saving costs, improving efficiency, and bringing transparency. It has solutions to the challenges faced by different industries. It is improving global businesses by making companies more efficient and profitable.
Blockchain is advancing fast and its future looks bright in the coming years. But, it has some limitations such as scalability and data privacy. Thus, the full adoption of blockchain by various sectors will need a market-wide understanding of its application against the current infrastructure.
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What are some applications of blockchain?
Many industries are adopting blockchain technology because of its benefits. Blockchain is likely to act as a new foundation for new businesses and services in multiple sectors in the future. Some of the popular applications of blockchain include: u2022 Financial exchanges money transfers u2022 Non-fungible tokens u2022 Supply chain monitoring u2022 Digital voting
What are the benefits of blockchain technology over the traditional financial system?
Blockchain offers many advantages, such as: u2022 Fast payments u2022 Lower costs u2022 Decentralized u2022 No need for middlemen u2022 More transparency u2022 More secure
Is Bitcoin a blockchain?
Blockchain is the technology while Bitcoin is a form of digital money. Bitcoin is a cryptocurrency that is based on blockchain technology for secure transactions.