Curious to learn about blockchain technology? Wondering how blockchain is useful in various industries? If your answer is yes, you have landed at the right page. The article illustrates what blockchain technology is, its pros and cons, and its use cases in 2020.
Learning Of Blog
- Introduction to Blockchain
- Its Pros and Cons
- Blockchain Use Cases 2020
Introduction to Blockchain
Blockchain is a chain of blocks(data) stored on multiple computers (servers) distributed over a vast geographical region. It is a distributed ledger that maintains a copy of all digital assets.
It is said to be decentralized ledger tracking of one or more digital assets on a peer-to-peer network(P2P). When we say P2P, it means a decentralized peer-to-peer network where all the computers are connected in some way, and each maintains a complete copy of the ledger.
Blockchain is a decentralized technology that possesses some unique properties such as transparency, immutability, enhanced security, enables faster settlements, and cannot be corrupted. The technology follows the rules about how data can be added to the network, and once the data is stored, it’s impossible to modify or delete it.
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Its Pros and Cons
Before understanding the use cases of blockchain, let’s learn about its pros and cons.
The Blockchain network allows users to send all kinds of information without involving an intermediary, which results in lower or almost negligible transaction fees. Apart from that, the blockchain ecosystem is popular as it allows organizations to go for a complete decentralized network where there is no need for a centralized authority, thus improving the transparency of the system. Blockchain platform also offers high security and high availability due to decentralization.
The most obvious obstacle to mass adoption of blockchains is that they don’t scale very well.
Another con of decentralized blockchain systems is that they can’t easily be upgraded. This is because making changes in an environment with potentially millions of users is a difficult task.
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Blockchain Use Cases 2020
Today, blockchain applications go far beyond cryptocurrency and bitcoin, and it is impacting a variety of domains in several ways. Let’s explore how technology can be used for a wide range of use cases. Let’s start with supply chain management.
Supply Chain Management
The supply chain involves integrated planning as well as the execution of different processes, including information flow, material flow, and financial capital flow as well. The coordination among multiple stakeholders in a given industry has traditionally proven difficult. Blockchain technology enhances the efficiency and transparency of the supply chain and positively impacts everything from warehousing to delivery. It allows the data to be more interoperable. Because of this, it becomes easier for companies to share data and information with suppliers, manufacturers, and vendors. The immutable nature of blockchain in the supply chain domain can prevent tampering and establish trust among the parties involved.
Blockchain has the capability to track and verify automotive parts and verify vehicle provenance. The technology can streamline the supply chain and business processes and can accelerate data sharing. The technology, with its transparency and immutability, can build a state of peacefulness in manufacturers, customers, and service centers. The applications of blockchain in the automobile industry range from crypto tokens to offer loyalty rewards to their customers to supply chain visibility solutions that can hold the integrity or provenance of the vehicle. It can maintain a tamper-proof log of all records, like, for example, service logs, details of wear and tear of spare parts, etc. that can help manufacturers to determine the actual resale value of the vehicle.
Blockchain in Healthcare
Today, the healthcare department relies on centralized servers and suffers from fragmented data, delayed communications, and various workflow tools caused by the lack of interoperability. The current methodology also leaves sensitive information in a vulnerable position. Blockchain is changing the working aspects of the healthcare industry, as well. The transparency and security of blockchain make it an ideal platform on which to store medical records. It enables patients to maintain their privacy while being able to share their medical information with any healthcare institution. Besides, blockchain enables faster data sharing as well as ensuring security. Using a shared platform for different medical facilities allows for easier collaboration between different providers.
Navigating the online world, securely, has become a real concern over the last few years. Today, cyber-attacks are more targeted, complicated because of intricate pieces of malware, and an increasing threat for professional cyber organizations. Blockchain is emerging as a very achievable technology when it comes to protecting businesses and other entities from cyber attacks. According to a remarkable announcement, NASA has decided to implement blockchain to expand cybersecurity and prevent denial of service(DOS) and other types of attacks on air traffic services. Blockchain offers decentralized storage, safety to the Internet of Things, vulnerability to DNS, and secure private messages, thus enhancing cybersecurity.
Blockchain has impressive potential to transform the workings of the financial sectors. With the help of blockchain, all large amounts of record-keeping transactions and operations can be recorded that prevent frauds and are unalterable. The decentralized nature of transactions also reassures the banks of better security over the records. With its security, transparency, trust, privacy, high-performance, and scalability, various use cases of blockchain in the finance domain include capital markets, investment, management, payments and remittances, banking and lending, trade finance, and insurance. It eliminates single point failure through decentralized utilities, enables faster transactions, reduces costs, and decreases settlement times as well.
Talking about the gaming industry, presently, gamers tend to be at the mercy of game developers, and in most online games, players are bound to rely on the developers’ server space and follow their changing sets of rules. Developers hold power to change or remove items as they see fit due to which players are merely licensees of their products. Games such as Gods Unchained are flipping the script and enabling gamers to be the real owners of their in-game asset. Blockchain technology could help decentralize the ownership, management, and maintenance of online games.
Blockchain in Governance
Due to increased decentralization, data integrity, and transparency, along with better efficiency and reduced operational costs, blockchains are becoming popular in governance. From improving transparency to streamlining the tax collection mechanism, blockchain distributed networks can help governments to operate more efficiently and build higher levels of trust among their citizens. Moreover, the platform can be used for property ownership, information governance, etc.
Digital Identity Management
As digital identity management and verification is perhaps one of the most promising, there is a definite need for more secure methods of storing, transferring, and verifying sensitive information. Unlike traditional systems, a blockchain-based identity system doesn’t require the direct sharing of confidential information; instead, digital information can be shared and authenticated through the use of cryptographic techniques. Blockchain network enables users to have better control over their information, which would significantly reduce the risks associated with storing crucial/sensitive data in centralized databases. In addition, blockchain networks can provide higher levels of privacy with the use of cryptographic systems.
Blockchain in Content Distribution
The content distribution helps in boosting one’s brand awareness and collecting loyal followers. It encourages readers to click, act, and become customers. But there are various challenges with traditional content distribution. The conventional method does not possess a decentralized approach due to which artists and other copyright holders are affected by the lack of sales transparency. Moreover, piracy is another significant issue. Blockchain eliminates the problem of piracy, offers a personalized content experience to the users, and provides users with opportunities for seamless payment transactions and content copyright tracking.
Scope of Crowdfunding
Traditional funding related to business is hard to get. But blockchain can be seen as a viable solution in making the funding process safe and offers transparent access across the world. There are several ways by which blockchain crowdfunding can be helpful in funding businesses. Blockchain could allow for more secure, automated crowdfunding where the terms of the agreement are defined in computer code. Few examples of crowdfunding are IPO(Initial Public Offering), ICO(Initial Coin Offering), and STO( Security Token Offerings).
In such methods, investors raise funds in hopes that the network will be successful in the near future, and they’ll get a return on their investment. These fundraising methods are a new skyline for many investors, and all the three offerings give companies and businesses new ways to raise funds.
There is no denying the fact that blockchain, a distributed ledger technology is here to stay as it holds power to transform all industries and revolutionize all aspects of life. Although the technology existed long before the creation of Bitcoin cryptocurrency, it was recently that blockchain’s potential started to be recognized on a broader scale. As distributed ledger technology, blockchain is capable of providing networks and organizations with improved security, transparency, accountability, and efficiency. Technology is proficient in enhancing privacy and removes the need for trust.
To summarize, we can say that blockchain offers global and decentralized networks, total transparency, digital agreements with reduced expenses, and taxes, making it a remarkable technology of this digital era.
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