Blockchain technology has the makings of being the one idea that can modernize the way money is handled. It renders moot the need for a go-between and empowers people to conduct transactions without having to involve banks and other financial entities. It can make every process or an organization wholly self-sufficient.
What veritably helps the progress of Blockchain technology is the increasing use of cell phones in the transaction of money by way of mobile applications. Blockchain technology would simply do away with all the financial arbiters that you’d traditionally require when transacting using your phone. This provides an effective if not elegant solution for your qualms of depending on the increasingly vacillating financial institutions. The risk of cons greatly reduces in the face of this new technology. Blockchain can not only be used to log financial transactions but also record anything of value.
Blockchain And Its Applications
A blockchain refers to a collection of records, called blocks, which use cryptology to securely link with each other. It protects everyone’s privacy along with ensuring them access to the global economy.
Here are the applications of blockchain technology
- Bitcoin’s exponential growth in the past year has given us a rough idea as to the benefits of the technology it uses.
All the problems that plague online transactions and the likes such as those with identity, contracts will be tackled by blockchain technology. It will augment if not completely overhaul processes used to evaluate the legitimacy of potential customers. Bitcoin isn’t managed by a central authority but by the entire network, which is what decentralization actually means.
- Business operations all over the world have massive security concerns pertinent to the use of the internet. Blockchain offers unrivaled security and alleviates the risks underlying online business operations.
The fact that blockchain is based on cryptography shields it from any risks of being hacked. Being distributed over multiple networks is another feature of blockchain which further makes it invincible. No government can presume to bring it down thus ensuring its durability.
In addition, blockchain can function as an impregnable archive for all sorts of important documentation that can be prone to misuse.
Blockchain isn’t controlled by a single individual because it cannot be.
In short, blockchain technology has the potential of making the internet a secure place in the future as opposed to the wobbly thoroughfare it is today.
- Cancelling out the need of a middleman: The example of SWIFT is the most recent in the case of an arbiter bungling the security of transactions. Blockchain to its credit purges the need of a middleman which will decrease the chances of scams exponentially. Blockchain beats the possibility of manipulation because a massive amount of computing power will have to be used to override the whole network.
- Another possible application of blockchain technology is bringing transparency to elections just as it does to financial transactions. Distributed database technology has the potential to bring this fruition. Governance of any company can become just as transparent when it comes to handling equity or digital assets.
- When applied to the real world market, blockchain-based time-stamping can function as a certification for the products that customers buy. The authenticity of the products we buy is a constant nagging concern which can be put to rest by the use of blockchain technology.
- Remedying theft of intellectual property: Contemporary internet doesn’t exactly protect a copyright holder’s interest when it comes to the matter of intellectual property. The use of smart contracts can streamline the entire process of the sale of such creative works online and prevent the risk of piracy at its root.
- Stock trading: Peer to peer network can mitigate the long periods that trade confirmations usually take; some clearances sometimes take as long as three days. The liaison generally needed for this is also done away with.
- Blockchain enables the use of digital tokens for customers in loyalty programs which can negate the problem of online fraud.
Cryptocurrency is just a small portion of what blockchain can be applied to. Its real-world applications can be much more far-reaching than what cryptocurrency has managed to be. Blockchain technology can play a crucial role in securely tracking transactions in almost every type of industry be it insurance, real estate, healthcare or banking. A lot of blockchain companies have emerged in the last one year. See this list of blockchain companies in India, which is a sign of change coming up in this field.
Bitcoin limited the use of blockchain technology to payments, quite unlike what Ethereum was designed to. Ethereum can ease all sorts of smart contracts, something entirely outside the purview of bitcoins. Ethereum facilitates smart contracts which can be set to execute when certain conditions are met. Smart contracts have only been used as of yet for simple functions but Ethereum has the potential to scale it to meet a larger market. Smart contracts of Ethereum reallocate surplus renewable energy when solar panels of the grid are found to produce excess energy.
Building on the success of Ethereum, a lot of decentralized apps that use blockchain technology have popped up, each of them adding a certain degree of customization to the underlying technology or the application for which it’s being used.
Dapps and Its Benefits
These decentralized apps like Cardano, NEO, NEM, Litecoin have all characterized themselves by focusing on niche features like P2P cash, smart assets, global payments etc.
There’s plenty of room for many more of these decentralized apps to grow further. Their benefits as such are:
- Ability to reduce overhead costs by doing away with platitudes like accounting and fraud prevention.
- Ability to close business deals anytime anywhere without having to agonize over business hours.
- Unparalleled security on account of the causal technology’s storage features.
- Improved business owing to the revamped operational performance.
- Minimal transaction costs as an extension of reduced overhead costs as pointed out earlier.
- Increased accessibility in the future will lead the way to support a diverse group of businesses.
Future of Blockchain Applications
There is no doubt that there are plenty of businesses are already embraced this new technology for the reasons mentioned above. Many countries have officially accepted Blockchain technology as a platform for their upcoming projects. Blockchain is a technology framework and several platforms that use this framework have already evolved and many more are under development. Just like Microsoft has Windows, IBM has its own framework called IBM Hyper Ledger. Companies like Logiticks and IBM are already offering IBM Hyperledger blockchain application development services. India being the offshore development hub of the World, many Indian IT companies are gearing up to take advantage of this new technology by setting up research centres and development offices. Let’s wait and watch how the world is going to change with Blockchain technology.