Due to the advancement in technology tremendous transformations are seen among various industries. Blockchain is one such digital technology that has had a significant impact on a number of important businesses and sectors through its security and transparency. Businesses throughout the world are also quickly adopting this technology.
This article discusses everything you need to know about block chain technology.
What is Block chain?
Blockchain is a method of storing data in such a way that it is difficult or impossible to alter, hack, or cheat it. It’s basically a digital log of transactions that’s duplicated and spread across the blockchain’s whole network of computers. Each block on the chain contains a number of transactions, and whenever a new transaction occurs on the blockchain, a record of that transaction is added to the ledger of each participant.
Types of Block chain?
Public blockchains is open for everyone, anyone can join the blockchain, and are completely decentralized. Public blockchains allow all nodes of the blockchain to have equal rights to access the blockchain, create new blocks of data, and validate blocks of data.
Private blockchains, is a permissioned blockchain that is under the control of an entity. Only the central authority determines who can be a node and does not necessarily grant each node with equal rights to perform functions. Private blockchains are only partially decentralized because public access to these blockchains is restricted.
Consortium blockchains are permissioned blockchains governed by a group of organizations, rather than one entity, as in the case of the private blockchain. Consortium blockchains, therefore, are more decentralized than private blockchains, resulting in higher levels of security.
Hybrid blockchains is a combination of a private and public blockchain. Hybrid blockchains are blockchains that are controlled by a single organization, but validation/ transaction validations are performed by the public blockchain.
Uses of Blockchain
The technology is well-known for its application in cryptocurrency networks, but its decentralised and secure properties make it a useful tool in a variety of other fields.
In healthcare, blockchain technology is utilised to store patient data, allowing restricted access to many stakeholders to a single source of truth where all interactions with a patient’s health data are time-stamped. Because the data is encrypted, the patient’s health information is safe; this gives people more control over their medical records. Change Healthcare, Simply Vital Health, and Farma Trust are three healthcare companies that leverage blockchain technology.
Blockchain has the ability to develop a real-time tracking system for food goods from a specific field to several end destinations. Consumers can follow the path of their food from farm to table because of Blockchain’s traceability. Furthermore, authorities can track and monitor the source of food-borne illnesses, and it encourages food manufacturers to be accountable. Greenfence, Hungry Coin, and other examples come to mind.
Blockchain technology is uniquely equipped to deal with the challenges facing retailers, from providing greater oversight for supply chain management to offering the provenance and proof-of-ethicality. Retailers benefit from better product provenance tools, as consumers are concerned with the origins of their things, both from an ethical and value-based. Beyond product losses and fraud prevention, transparency in retail supply chains via blockchain distributed ledger technology will give early adopters a competitive advantage.
Because all documents can be saved digitally, implementing blockchain in real estate can eliminate fraud, boost privacy, and speed up transactions. Real estate transactions could become truly peer-to-peer in the future, with blockchain-powered platforms handling the majority of the work.
Blockchain may also be used as a technology-based IP registry, where IP owners can store hashed digital certificates of their IP and use smart contracts to collect royalties from others who use their works and inventions. It will be easier to register new IP, amend filings, and transfer ownership at any moment by replacing centralised registration methods with decentralised ones. Regulatory agencies will be able to accomplish more with less resources, thanks to blockchain.
The Industrial and Commercial Bank of China (ICBC) was the first to investigate methods for verifying digital certificates and storing data in a sharable blockchain. They filed a patent application with China’s State Intellectual Property Office (SIPO) with the goal of using a blockchain system to increase certificate issuing efficiency and spare users from filing the same document to numerous entities several times.
Blockchains are well known for their critical role in keeping a secure and decentralised record of transactions in cryptocurrency systems like Bitcoin. Satoshi Nakamoto, a pseudonymous developer, has the patent for creating the first blockchain and bitcoin, which he describes as “a new electronic cash system that is totally peer-to-peer, with no trusted third party.”
How Blockchain is disrupting banking and finance Industry?
- Blockchain technology allows untrustworthy parties to agree on the state of a database without the use of a mediator. A blockchain could deliver particular financial services like payments or securitization without the need for a bank by providing a ledger that no one manages.
- Blockchain technology could enable quicker payments at lower fees than banks by establishing a decentralised ledger for payments (e.g. Bitcoin).
- By eliminating the need for gatekeepers in the loan and credit industry, blockchain technology can make borrowing money safer and more affordable.
- Blockchain-based trade finance activities can streamline the entire trading process by eliminating time-consuming paperwork and bureaucracy.
Digital technologies are currently altering a wide range of industries and sectors. Between these technologies, blockchain finds use in a number of well-known businesses because of its multiple advantages. Blockchain technology is projected to become much more popular in the future. Get in contact with us to learn more about advancements or trends in blockchain technology through our technology research and market intelligence service