Blockchain Technology in real world scenarios:
How blockchain technology affects software solutions.
Blockchain technology is one of the most talked about technologies right now. It is the underlying technology that allows Bitcoin to exist. It is also the technological backbone of other cryptocurrencies like Ethereum, Litecoin and Dash. However, the uses of blockchain technology don't just end with cryptocurrencies. In fact, blockchain technology can be used for a myriad of things, from security to creating a decentralised marketplace.
A blockchain is nothing but an open distributed ledger and the open ledger technology is the foundation of blockchain. It is the place where all of the data and information is stored. This can be financial, personal, or anything else that is important to the owner of the data. It is a public file and anyone with the right applications and software can access it.
How blockchain technology is changing the global business scenario?
Blockchain is one of the most disruptive technologies ever developed. But the blockchain technology is still at its early stages and is continuously being developed and enhanced. Blockchain technology is an open database distributed to multiple nodes (computers) on a peer-to-peer network. Blockchain database can be public or private and doesn’t require a server, administrator or middleman. The database is secure, immutable and auditable. Blockchain helps to develop smart contracts and this technology is used in almost all the industries. Smart contracts are self-executing with specific instructions embedded on it. Smart contracts can be used in financial industry for asset management purposes, for health care industry for patient records and for many other industries as well. In the next 5 years blockchain will completely transform the global business scenario.
Use cases for blockchain and how is it disrupting the software application market
The technology is still new and is not without limitations, but it seems that the biggest impact of blockchain technology will be in the financial services industry. However,
Blockchain is a database and a network. It was invented to support Bitcoin cryptocurrency, but the potential use cases for blockchain technology are far beyond just cryptocurrencies. It's incredibly tamper-resistant and, thanks to its public nature, highly transparent. This makes it ideal for keeping track of financial transactions, stock exchanges, contracts, identities, and even votes.
In Blockchain transactions between two parties can be validated, recorded, and stored. For example, a company can use blockchain to track all changes made to a document and who made those changes. Or a company can use blockchain to enter transactions into an immutable database (like Wikipedia) so that no one can change the number of coins someone owns. And it's fast and cheap -- the technology eliminates the need for a centralised data or processing centre since all the database maintenance is done by network participants.
Healthcare and insurance industry
Blockchain has the potential to revolutionise the healthcare, insurance, and pharma market because of its built-in features of decentralisation, immutability, transparency, and security. Blockchain technology will provide all these four key attributes to the healthcare, insurance, and pharma industry because it is based on an open-source network that is shared by a group of people or entities. For example, Estonia is already using blockchain to secure its citizens' health records, also Estonia is the first country that using blockchain technology to secure the health records of the patients
So, if our medical records were kept in a database using blockchain technology, it would be near impossible for someone else to hack it. The information wouldn't be easily changed, but would always remain accurate. Plus, it would be nearly impossible for someone to change the information without the doctor's approval. All of that would decrease medical errors and help doctors more easily treat patients.
Blockchain in Banking, stock market and government sectors
Banking is a vital part of today’s economy. It helps in the transfer of money and other financial services. It is a heavily regulated sector and forms the base of the global finance and trade. Traditional banking is done by financial institutions. They are trusted because they are backed by governments. This mean when you deposit money into a bank account, it is insured by your government.
It is inevitable that blockchain will permeate into the finance sector. We will see this happening at two levels. One, the technology being behind the blockchain will make its way into banking. The second level is when the blockchain technology becomes the platform to be used by banks themselves. In the meantime, we can expect banks to be using blockchain technology to store and transfer fiat money, especially since the technology to be used is thousands of times faster than the systems they use now.
The application of blockchain in stock market will help improve existing structures and make them more effective. It will help reduce cost and provide a secure trading environment. There are various sectors where blockchain can be applied for stock market like trade settlement, purchase-to-payment cycle, and post-trade derivatives. Many financial experts are exploring how blockchain technology can be applied in traditional financial settings to make them faster, cheaper, and more secure.
Blockchain is a technology which can eliminate the need for a third party in any transaction. Governmental sectors are always looking for better ways to deliver services to its people. So this is the right technology for them. Blockchain can allow governments to streamline paper-based processes and identify where processes could be completed digitally. Blockchain has many different applications in the government sector. Some of the applications are Identity management, Tax collection, National health service, Dispute resolution, Land registries, Voting processes etc. The government could also use blockchain to speed up and ease cross-border transactions.
Blockchain in real estate, music and art industry
Music and arts industry are always the most difficult part of the economy for any government to monitor and control. A blockchain solution is an opportunity for the music and arts industry to provide an open source model for funding, tracking and buying of music and arts that always remains under their own control. In this model, no one can take music and arts away and they can get paid every time someone sees their content on the internet.
Blockchain in retail and consumer goods industry
Retailers can use block chain technology as a verification system for transactions. For example, if a customer wants to buy a product, he will scan its barcode, then the blockchain will verify the information in the barcode and give an answer, whether it can be purchased or not. Also, the blockchain will keep track of the product and its history.
In India, 3.6% of the transactions are made online in 2020, with the rest occurring in bricks and mortar retail stores. However, many of the in-store transactions require a payment system that is both safe and effective. Blockchain technology makes this possible. A blockchain ledger holds every transaction which takes place. The ledger is transparent and public, so that every individual has access to the same information. The information in the ledger is updated in real-time, so that the information is reliable and accurate. The ledger can also be used internationally, so that money can be sent internationally with ease and speed.
Let’s Put It All Together
Blockchain technology is one of the most talked about technologies in the world today. Most people are aware of the technology, and many people have a vague idea of how it works. However, not many people truly understand the implications this new type of technology will have for the future. In this article, we tried to explore it.
It is always important to note that the blockchain is not a magic bullet that is going to solve all of our problems. In fact, it is important to understand the blockchain is simply a tool. It is a tool that can be used to solve a number of security, privacy, and trust problems that we have in the world today.
We hope you enjoyed our article about how blockchain technology is used in software applications. This is a rapidly growing field that is revolutionising the way we think about data storage.
Thank you for reading, we are always excited when one of our posts is able to provide useful information on a topic like this!