What is Blockchain?
Blockchain, also recognized as dispersed ledger technology (DLT), practices decentralization and cryptography to make the story of any digital asset fixed and transparent. A simple example to understand blockchain technology is the Google document. When we create a document and share it with a group, the paper should be distributed rather than copied or transferred. It makes a distributed distribution chain that allows everyone to access documents at the same time. No one is locked out to wait for changes from others, and all changes to the document are recorded in real-time, making the changes completely transparent.
How Blockchain Works?
The name blockchain is not a coincidence. Digital ledgers are often represented as a “chain” of individual “blocks” of data. When new data is added to the network regularly, a new “block” is created and added to the “chain.” It means that all nodes update the ledger version of the blockchain to be identical.
Blockchain is said to be highly secure because of how this new block is created. Before the new block is attached to the ledger, most nodes must verify the validity of the new data. In cryptocurrencies, it is necessary to ensure that the latest transactions in the block are not fraudulent and that the coins are not used more than once. It is different from a separate database or spreadsheet, where one person can make changes without supervision.
Top Ten ways Block chain Changes the Future
Evolution from centralized database to a decentralized database
Traditionally, data is stored in a relational database. You can think of it as an advanced spreadsheet for Excel that uses columns and rows to store data. In addition, these tables are stored using the hard drive and are provided upon user request. Data is stored in a centralized location. A centralized database will experience performance degradation if the number of requests increases significantly.
To overcome the limitations of centralized databases, more powerful computers and techniques for processing requests faster are introduced. This makes databases more likely to be targeted by hackers. In addition, a vast infrastructure budget is required for database operation and management. These seem to have limitations for companies looking to find practical solutions to their products.
All of this depends on the blockchain, which is technically a decentralized database. Blockchain is technically a decentralized database where each node has a copy of the database or ledger. It allows companies to improve data redundancy at a whole new level.
Potentially, blockchain technology could change the world.
1. How does blockchain change the financial world?
With the help of blockchain, the financial world will change completely. Blockchain platforms can change the world economy very quickly.
For example, Ethereum’s blockchain can automate, secure and operate efficient processes in the financial and banking sector. It can also help you optimize costs and digitize without increasing the costs required to manage securities and other assets.
The commercial environment can always serve from blockchain’s clarity, reliability, privacy, extensibility, and security. For example, financial markets can use programming functions to automate KYC/AML and data privacy. It can also increase efficiency and streamline processes.
Blockchain will succeed in transforming the financial sector because it is much better than the trading model.
The best use cases for blockchain in the financial world include:
– Investment management
– Lending and banking
– Insurance (insurance)
– Trade finance
2. How does blockchain change real estate?
Have you attempted to purchase an apartment freshly? You’ll see how much effort and time it takes to complete the purchase. Any real estate transaction can take weeks to months to complete. The reason for this delay is that it uses a comprehensive process that is not very efficient.The extent of the estate executes very challengingly for clients and dealers to organize and maintain.
With blockchain, real estate can see a variety of changes, such as adopting more efficient processes with the help of automation. Other benefits include real-time payment settlement, cost reduction, tokenization, and more. It will be a massive boost for blockchain to transform the world economy.
The most significant benefit is that you can spend less time on transactions. Proper tokenization allows real-world assets to be stored and traded on the blockchain. Tokenization also will enable you to keep other types of information online, such as real estate funds and governance rights.
The use cases of blockchain in real estate are as follows.
– Record of Deeds and Land Title
– Lease and Payment
– Real-time accounting
– Tenant Identity
3. How does blockchain change healthcare?
Finally, I will introduce the healthcare field. Now healthcare can also benefit from blockchain. The healthcare industry has many pain points. For example, patients must always carry documents. It leads to problems such as incorrect data entry.
In addition, must solve the traceability of medicines. Without traceability, the drug can easily be counterfeited. In addition, the lack of access to patient data also hinders research.
The use cases of blockchain in healthcare include:
– Drug Traceability
– Patient consent management
– Electronic Health Record (EHR) Development
– Improved clinical trials
4. Speeding up transactions
Whether it’s business or private, it’s common for people to send money. Most of the services that facilitate payment take several days to complete. It is a problem if you need to send money urgently.
In addition, it takes more time for overseas transfers. Banks typically hold payments for a few days before using the SWIFT messaging system to remit funds. It is what banks do because they have strict rules on overseas remittance. However, because there are other intermediaries, the waiting time is longer.
The solution is blockchain. You don’t have to wait many days for the recipient to receive the payment; you can send money.
Banks also want to adopt Digital Tokens for vast amounts of money sent. It generally helps to make bank-to-bank settlements faster and more secure. Hence, blockchain technology could change the world by offering a quicker trading process.
5. Better land registration
When you try to buy a house, you have to go through a lot of steps. It’s a tedious process that can last for months. It also claims paperwork.
In addition, legal fees are required. The process of buying a house depends on where you live. In some places, it can be easier, but overall it takes a lot of time and effort to buy a home.
In addition, the real estate market is losing credibility. It is easy to make fraudulent or counterfeit documents. Multiple entities, such as government agencies and banks, need to check and manage many documents
6. Ensure credibility.
Concerning blockchain, there is no need to intervene with so many intermediaries. It is a platform that is not trusted. In other words, you know what you are doing?. You can check the owner of the property before making a transaction. The contract is transparent and cannot be altered. It ensures that everything goes smoothly. And because there’s almost no need for paperwork, your buying experience will improve to a whole new level.
7. Proof of Product
Blockchain works seamlessly with the supply chain. The product you purchased must go through several destinations before it reaches your hand. In the meantime, there may be multiple cheating activities that tamper with the product for your benefit.
If that happens, you won’t be able to get the product you bought. You may have a product that has been tampered with or replaced by an utterly illegal product. In any case, it’s easy to catch a scam.
It’s a great way to prove the product and ensure that consumers get the actual product they paid for.
The use of blockchain in the supply chain solves all these problems.The use of blockchain allows companies to understand the state of their products thoroughly. If a product is changed or altered, the system will alert and dispose of it from the supply chain. In the end, you can only get genuine products.
8. Supply Chain Management
Blockchain is ideal for managing the process when the state of value delivery of assets changes. Therefore, some experts think that blockchain will become a “supply chain operating system.” Walmart and Beijing’s Food Safety Collaboration Centre is used to track pork farm-derived details, batch numbers, factory and processing data, best before date, storage temperature, and shipping details. The blockchain can update the situation immediately, improving the security and visibility of the supply chain. It provides an immediate and undisputed tracking system for any industry (and ultimately most industries) that needs to track its suppliers’ supplies.
9. Asset Protection
Blockchain technology can help protect assets by creating an undisputed record of real-time ownership, such as musicians who want to receive royalties reliably when their music is played and property owners. Everledger, a global startup, is using blockchain and smart contracts to target precisely such a service. BlockVerify was explicitly designed to improve counterfeit measures such as pharmaceuticals, luxury goods, diamonds, and electronics, allowing companies to register their products and introduce transparency into their supply chains.
10. Identification card, Personal recording system, and Password
The government manages vast amounts of personal data, from birth and death records to marriage certificates, passports, and census data. Blockchain technology provides a rational solution to manage all of it securely. The company offers a service to register and manage Blockchain IDs and provides a Passcard product. It believes it will be a digital key to replace all passwords and IDs needed for individuals, including driver’s licenses. ShoCard is another identity management system currently in use that allows individuals and businesses to verify identities quickly.
You are not the only one who thinks that blockchain cannot change the world. Many experts believe that blockchain is not enough to change this world’s course of action. However, recent findings have predicted that blockchain will succeed.
If you look at the impact of blockchain technology, you will see how blockchain can change the world. I was also able to envision the future impact of our society.