The first idea of blockchain was deliberated in the 1980s by David Chaum. He went on to start a company based on the idea of digital cash that eventually declared bankruptcy. A decade later, Bitcoin was launched through blockchain, becoming the first modern cryptocurrency. Since then, the two concepts (blockchain and cryptocurrency) have been interlinked in every meaningful discussion.
Disruptive technologies like blockchain are a rare occurrence and limiting their application to one domain is an injustice to its potential. Large corporations like IBM and Maersk are investing heavily into incorporating blockchain to harness its extensive functionality. Similarly, let’s consider blockchain beyond cryptocurrency. Let us discuss the major sectors and industries that can benefit the most from blockchain.
Blockchain has made major advancements in cryptocurrency, but its main prospects lie beyond it.
This blog explores the basic concept of blockchain and how it works. It then highlights three main fields that can profit from inculcating blockchain.
Blockchain Explained
Blockchain is a digital ledger that chronologically stores data in a decentralized system. It is distributed across the network with every having copies of each transaction. However, the data is immutable which means once it has been entered, it cannot be altered. Another plus point is the consensus mechanisms which ensure security and enhance trust by replacing human auditors.
To put it simply, it is a chain of blocks, each individually consisting of stored data and an encrypted code known as a hash. This code guarantees data security by rejecting any oddball blocks and locating the network through which it came. These advantages present an unmissable opportunity to embrace blockchain into different sectors.
Applications of Blockchain
There are multiple domains in which blockchain can be effectively utilised to increase efficiency and lower costs.
Blockchain for Voting
Not having their voices heard or being misheard is a frequent dissatisfaction reported by many citizens of a country. A centralized system like the Electronic Voting Machine (EVM) enables this. Blockchain can tackle these issues by ensuring every vote counts and by fighting voter fraud due to its decentralized and immutable nature.
Blockchain for Healthcare
Many companies have already updated their data management and storage systems to one reliant on blockchain. They use it to safely store patient data and protect it from cybertheft and any consequent litigation. Drug trafficking and the following misuse is a major concern in the industry. Through blockchain, every single pill is traceable which restricts counterfeiting. In addition, coordination among healthcare professionals is significantly improved.
Blockchain for Supply Chain
The supply chain of even the simplest products has multiple steps that must be fulfilled to deliver the final product to the consumer. Every stage is a chance for mismanagement to work its way in and impact the entire chain. With the help of blockchain, stakeholders can follow the entire trail by providing product status throughout the process to every partner in the supply chain.
Blockchain for the Future
Blockchain has many applications beyond cryptocurrency. The lack of effort put forth by businesses in separating the two and understanding its potential restricts it to digital currencies. Three major applications lie in the core domains revolving around a country’s democratic process, securing healthcare data, and supply chain management. Overcoming the initial drawbacks of costs and security concerns is tough but blockchain is the database for the future.
