Cryptocurrencies have gained wide recognition around the world in the recent past. The fame of cryptocurrencies has shifted the spotlight towards blockchain technology too. With constant reference to blockchain, many have actually started taking interest to understand it.
What is Blockchain?
Blockchain is a digital, decentralised ledger which runs transactions of the most virtual currencies. It records transactions between parties in a verifiable and efficient manner without interference of any financial institutions. Blockchain enables transmitting funds fast and secure.
Blockchain is the brain-child of those who believed that the current banking system is flawed. Financial institutions acting as third parties to perform transactions and charging transaction fees to perform a transaction was unnecessary.
Even with all these charges, the financial institutions take around 5- business days for cross-border transactions. Whereas Blockchain performs transactions within seconds and cross-border transactions are definitely a possibility. As a bank is not authorising these transactions, the transaction fees of these transactions are low. This technology is game-changer for transmitting funds. For those, who think that blockchain is limited to cryptocurrencies, you’re wrong. There is so much more this technology can perform.
Here are a few other uses from blockchain technology.
Fund Transfers
With blockchain technology, the dependence on financial institutions is reduced, there is no third party to record your transactions. To put it simply, you’re transaction details are not recorded by a third party, which your data secured. Not only that no hackers can hack your transaction details when blockchain is used, making it safe and secure. Because of this technology, funds can be transferred between parties in a matter of seconds, you don’t have to wait for hours.
Data Sharing
A beta version of Data Marketplace of Cryptocurrency IOTA in November, this space is used to share or sell unused data. As data from most enterprises go unused, blockchain will act as an intermediary to store all this data for further use of industries. This way all the data is stored securely and can be used to improve different industries. This project is still in early stages, but IOTA has more than 35-brands are willing to use the data marketplace and offer feedback.
Copyright and Royalty Protection
Internet is giving a stage to many content creators, be it musicians, artists or writers. The creators can now sell their content on the internet, but what about copyright and royalties. With internet involved copyright laws and royalty laws are still confusing. But with blockchain, all these worries can be put to rest. As it will ensure a real-time and transparent distribution of royalty data to creators. They can also get a fair share of the profits when their content is digitally downloaded.
Auto title transfers
Blockchain is the decentralized and computerised ledger that stores all the information relating to a transaction without involving paper. Saving all your information in papers can be risky as there are high chances of losing it, and there are often instances where it can cause confusion. When you’re buying or selling property, you are required to receive or transfer your title. Instead of exchanging papers you can store titles on the network using blockchain technology. This way there will be transparency in the transaction and there will be clarity in matters relating to legal ownership reducing cases of disputes over ownership.
Food Safety
Another cool thing about blockchain is, it records each and every transaction and they are not erasable. Each transaction is saved in the blockchain. This technology can be used in tracing the origin of your food products. Usually, you would purchase your food products in the supermarket, but by involving this technology you can track the product’s origin. Because of which you can avoid the food-borne illnesses. In case of any containment of the food, you can use these transactions to trace back the manufacturing place.
Tax compliance
Using Blockchain technology to record transactions can actually be used to create transparency between companies and the government. As blockchain records all the transactions it becomes easy for companies to demonstrate to government or lawmakers that they are running the business by complying laws. The government can also check the records whether the companies are paying tax duly or not.
Weapon tracking & medical record keeping
Many organisations are working on Gun Control. Gun Control is an issue that needs to be discussed and controlled. With Blockchain technology, federal government or law enforcement can create and maintain an unchangeable and transparent registry network to track the weapon ownership. Not only this they can also maintain a private record of all the weapons sold.
The medical sector has started keeping their records online. Blockchain technology can offer them more convenience and safety. When maintained in blockchain technology, the hospital can store all patient-related information online. And the patient can have access to all the information and the patient can control who gains access to this information. By using this technology patient privacy can be protected.
Stock trading
Blockchain can clearly replace current trading platforms in the near future. Blockchain is qualified to hold the equity trading. As it can settle the transaction in just seconds, which means the investors don’t need to wait for multiday to access their funds. As equity trading is all about timing, every minute counts, waiting time can actually cost a potential investor. When a transaction is settled within seconds, they can invest this money into other sources and make money.
Identity and inheritance
Blockchain combines both private and public key to establish a strong digital identity. Which means it creates a digital identity to each person. You can use blockchain as a platform to perform smart contracts. With blockchain, you can store information digitally so why not create and store digital wills or inheritance rather than a paper one. By using this platform you can maintain transparency and wills can become clear and legally binding, making it clear on who will receive what in case of testator’s death.
Data Back-up
As every transaction data is stored in the blockchain and it is hard to delete an entry from it. Which makes Blockchain a perfect source to back-up your data. When your data is stored in the cloud it is easier for hackers to steal your data, whereas when data stored in the blockchain it is hard for a hacker to steal the data. To ensure the security of your data you can use blockchain as your backup source.
Conclusion
Blockchain technology is used mostly by cryptocurrencies, but if used for other purposes it can help many industries. It ensures data safety and when your transaction data is stored in its database it is hard for hackers to hack your data. Using blockchain assures transparency, as all the transactions are recorded and saved in public and removing an entry from a block is nearly impossible. It provides security and settles a transaction in a matter of seconds. If used properly blockchain can be quite useful to many companies and individuals.
