Blockchain lately has created enormous technological excitements driving far-fetched developments in the world. It all started with the creation of Bitcoin and other cryptocurrencies, or digital currencies. The blockchain technology supports and assures that all digital currency transactions are accurately organized and documented. The resources are put in encoded design over the internet on a node-to-node chain called the blockchain or ledger, where each member knows who it does business with. This technology secures your business transactions and prevents theft, simplifies and accelerates your transactions, reduces faults without the need for engaging a third party.
There is more than digital currency that the blockchain technology can do to transform our lives. The use of our machinery, property, the way you can vote in the elections and establishing your identity can all be improved using a blockchain. Many applications of this technology are already leveraging financial and banking institutions, corporations, hospitals, the legal system, and governments all around the world. It can power digital identification on the Internet of Things.
The existing processes can be enhanced or open up new technologies with the implementation of applications of blockchain technology. Some of the potential blockchain technology applications are spelled out in the following passages.
Cryptocurrencies, the digital coins or Bitcoins pass over an electronic network. You can carry out contracts with wiring, or check or by cash or by virtual currency- the Bitcoins, Peercoin, Litecoin or Dogecoin-among many others to an electronically coded address for completing the transaction. You need to protect a valuable transaction, the more valuable the better. Usually, an intermediary comes into the picture between the transacting parties, like a remitting company and a banker to ensure trust. The intermediary maintains records of this distributed transaction to refer back when needed or a dispute arises.
Replacing such intermediary, the blockchain turns this community record on a digital scale. This stretches all over the world, where internet users with computers in different places using a node of the network records and corroborate each transaction data that takes place over the network. As these records become permanent, universal and comprehensive, users prefer to use this platform for speculative transactions. The process verifies each block of transactions before allowing into the system. The involved participants are guaranteed that everyone is evaluated and authorized the deal. The system decreases spam and fraud like dual spending and transfer funds safely and faster.
Blockchain Financial Services
The conventional financial transactions often turn inconvenient, exposed to errors, and frequently become slow. Mediators generally needed to transform and solve conflicts. Oftentimes, money and costs stressed. The blockchain platform is exactly opposite to this, and users discover it transparent, efficient and economical. As such, an increasing number of financial businesses use this system to bring in modernization, like smart contracts and smart bonds. The latter unquestionably pays coupons to the bondholders upon meeting certain set terms. The smart contracts are nothing but digital contracts that gets self-executed, self-maintained upon meeting certain set terms.
Smart contracts are IFTTT code (if-this-then-that) embedded digital contracts that get self-executed. In transactions, the mediator makes all parties to follow the terms of the contract. The blockchain replaces the mediator’ role and ensures all members recognize the contract details and implement its terms automatically when set terms met. Smart contracts can be used for any situation, like insurance premiums, financial derivatives, agreements for crowdfunding, property law, among many others.
Decentralized Cloud Storage
Presently, functions of cloud storage are consolidated. This can turn into distributed storage with the blockchain. The blockchain data repository expects to turn into a great disruptively distributed cloud storage in the near future and command all online resources. Beta testing of cloud repository is already underway at present with a powered network by blockchain to reduce dependency on a single source and promote its security. Anybody using the internet can offer to get your data stored at a set cost. Testing, allowing and securing the data in different sites is the key. Once your data is encrypted, it is moved to a network to track the information. This process is already in an exploration stage by Storj.io and Factom, two start-up companies.
The verification, approval, and security of digital identity is truly a universal problem, be it healthcare and banking, identification of citizenship, online trading, and national security. This issue is believed to cost more than eighteen billion dollars to the industry as per the report of Distil Networks. The blockchain applications expect to route and manage digital identities reliable, powerful and secure culminating into reduced frauds and make the sign-on process seamless. Instances of breached accounts and database hacking have become a challenge to technologies without disassociating security based innovations. Blockchain applications offer answers to many of such issues to solve digital identity authentication in an indisputable, enduring and secure way.
The present system of password and secrets shared processes on a vulnerable way is the norm of the day. It needs a transformation for the betterment to avoid these vulnerabilities. Here the blockchain verification with digital signatures based on the public key cryptography procedures helps to establish indisputable identification. The sole check required is to carry in blockchain identity verification is to ensure that the transaction was signed with the correct private key. Whoever has the access to the private key is deemed identified owner.
Generally, a deal between a purchaser and a vendor involves a mediator like an agent or a broker. Such an arrangement becomes obsolete with blockchain that uses an escrow operating system to match sell and purchase orders with the system acting as a validator. A distributed exchange allows a user to make his own digital assets and exchange. On the exchange, orders become public, and buy bids and sell executed without the need of a mediator. As a seller and a buyer come to an agreement, funds, and assets released using an escrow system and the sign-on features.
The Distributed ledger of Smart Property
Smart property management reduces risk into dubious business cases, arbitration fees, and fraud. It builds up trust and productivity. Property such as a house, a car, and the likes, and patents, company shares, property titles and the likes can be embedded with smart technology. Certification of such properties and their contractual details of ownership can be locked away on the blockchain ledger. The approved parties are allowed to use smart keys to access their details. The ledger provides swapping of these smart keys after the contract is authenticated. The distributed ledger develops into a system of registering and dealing with the property rights and facilitate duplicating smart contracts if smart key or records lost.
Blockchain Internet of Things
The blockchain ledger brings in security to the Internet of Things. Cybersecurity experts are concerned about making distributed information secured with tons of devices hooked up closely. It has become a concern as to how to cover inventors’ ideas, governments to secure their confidential information, companies to safeguard their operations from a breach. It also has become a concern as to how to set up and evaluate the enormous volume of data generated by these connected devices. Here, the blockchain ledger ensures authorized information is recognized and distributed to reliable parties. The ledger gives parties a platform to evaluate the huge data.
Blockchain Digital Music
Rights of ownership, transparency, distribution of royalty are key issues in the music business. The digital music often overlooks rights to ownership, while it focuses on the monetization of production. Smart contracts and the blockchain applications can help solve these issues with the creation of a database of distributed and comprehensive music rights. On the other hand, the blockchain ledger enables communication of royalties to an artist transparent, besides real time distribution of labels to the involved parties. The participants get paid digital currency as per their specified contract terms.
Blockchain Electronic Voting
It is believed that the hackers can manipulate votes with tampering electronic voting system. The blockchain applications can avoid this tampering with encryption of votes. The voters can verify that their ballots counted and affirm who they chose. The government can save money by implementing this system. The blockchain ledger further presents a program of 'response, open data', which is a freely available government-provided data made accessible across the internet to everyone.
A Mckinsey and Company report of 2013 says the world can become richer by 2.6 trillion dollars by implementing this program. Businesses can utilize this information to crack deceitful schemes, farmers to complete accurate cropping in their farms, and parent to inspect the medicine’s side effects causing to their kith and kin. At present this data is distributed once a year, but cannot be responsive to user input. The blockchain as a social ledger can make this data available to users at all times.
A Concluding Word
As pointed out above, many of these blockchain applications getting developed but still unfolded. The near future is expected to explore and apply all conditions in the world under ethical norms with node-to-node network motivated. The blockchain continues to remain to revolutionize our functions. The blockchain also expected to develop into a potent medium to improve business, managing fair trade, and help support honest, free, and transparent societies, and universal economy.