In order to know how blockchain technology is disrupting the world, one needs to know the concept of blockchain. It sounds complicated, but its core concept is really simple. A blockchain is a type of database or a collection of information that is stored electronically on a cloud or computer system.
Blockchain is a type of a specific database, unique for its information storage solution. The way it stores information is how it differs from a typical database. A blockchain collects information or data together in groups, known as blocks, and they hold sets of information. Each block has certain storage capacities and, once it is filled, they are chained onto the previously filled block, thus forming a chain of data known as the “blockchain.” Any new information that has to be added is compiled into a newly formed block which then will also be added to the chain once filled.
The main reason blockchain seems to be disrupting the world is because it is breaking the current scenario of data management. Most of the data management follows a centralized system. Blockchain technology depends on decentralized concepts, entirely against the current centralized system.
Usage of blockchain technology in various fields
Financial transactions, Public administration, Data management, Tourism are a few such areas, in which Blockchain is implemented gradually. One can aim to improve transparency in administration. It’s highly used to increase security for financial transactions and data management. It aims to the reduction of costs and improved efficiency.
Why Blockchain is considered to be disrupting the world?
Blockchain creates a secure and trustable ecosystem that works automatically. It avoids the threats of fake transactions or documents. It puts an end to sectors where pyramidal and hierarchical organizations are no longer needed. Since it is decentralized, nobody owns the network, hence the network acts as the supreme authority.
Benefits of blockchain
- Reduction of costs
- Reduction of paperwork
- Highly trusted
- Provides maximum security
Certain industries disrupted by blockchain
Finance Industry
Bitcoin has a very strong brand in the digital currency space. It is one of the best-known applications of blockchain technology. This technology provides Bitcoin, with a verifiable ledger of transactions. The best part of the blockchain is to provide security to the ledger. Hence, it does not permit any middlemen nor banks to take full control of digital money. Every block in the blockchain is distributed to various people of the network, thus the control does not exist to one sole proprietor or a firm.
Music Industry
The music industry is adapting to transformation with blockchain technology. It can be used for music streaming. It is used to ensure musicians are paid fairly and quickly for streams and sales of their work. The blockchain increases transparency. This would be beneficial for artists to see into the process of splitting royalties. This will avoid the publishers and record labels who were to hold the royalties before giving them to artists so far. This is possible only because of blockchain technology.
Fighting counterfeits
This revolutionary technology has been developed to build an anti-counterfeit solution. It brings transparency from the blockchain to supply chains. It can verify diverted goods, counterfeit products, fraudulent transactions, and stolen merchandise. Some of the best solutions used to fight counterfeits will include pharmaceuticals, luxury items, diamonds, and electronics.
Ownership
Blockchain technology helps to distribute ownership. Blockchain is used for data management and record-keeping for businesses and governments.
- Money is secured by the financial records
- Property is secured by real estate records
- Credit and identities are secured by the citizen records
If all this information exists in a centralized location these records can be hacked or maliciously changed. With blockchain technology, all the information is distributed rather than having it be centralized. Hence it makes it impossible to hack a distributed network. This is one of the blockchain’s greatest benefits.
Health Sector and Ecosystem in fighting against pandemics like COVID-19
One of the most important strategies to rein in the spread of coronavirus infection is contact tracing. That is to track and isolate the close contacts of infected individuals. Many countries, including Germany, South Korea, Norway, and Singapore, have developed contact tracing applications to control the outbreak. Its effectiveness, though, may be riddled with the challenge of data breaching and insecurity.
Blockchain technology collects information from contacts without identifying them. This system does not expose any personal identifiers; this is achieved by the use of a digital fingerprint or key to label each patient.
The Automotive Industry
Third parties such as Car Insurance providers and other TPAs are often involved during the lifetime of a vehicle. This is especially true for cars used for business purposes. The blockchain can access information related to a vehicle that is needed by these third-party services. Blockchain systems coordinate shared rides, identify vehicle owners, check the ownership of vehicles, auto insurance, vehicle recall optimization, ownership transfer, and identification of auto parts.
By controlling the core properties of blockchain technology, including the transparency of transactions, the immutability of data, and data security, public health agencies and governments can address many problems, taking the world several steps ahead and heightening the global economy back to normalcy.
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