Which industries can benefit from blockchain?
Blockchain can be used in many areas outside virtual assets or trading. Which solutions, directions, or industries can benefit from using blockchain?
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What is blockchain? The simple explanation
Blockchain is a distributed ledger, a decentralized database for recording and storing information in a specific network. This storage is designed not only for transactions or operations with digital assets such as cryptocurrencies or tokens – blockchains can be used in different fields and for various purposes.
They can be public and open or private and closed. A hybrid blockchain format is also open and available only to participants in a particular industry or service sector. It is called a “blockchain consortium.” In the latter version, the blockchain is controlled by a single owner and, by and large, is no different from the corporate database of any company or organization.
Blockchain basically means a chain of blocks. And this is not just wordplay. The technology is based on creating many records, which are formed into blocks (bundles). They make a continuous chain, where each newly formed connection is inseparable from the previous one and stores (duplicates) all information about it. This ensures a unique feature of any blockchain – immutability, security, integrity, and reliability of the stored data. Attempting to introduce unauthorized new or change existing data in any of the blocks becomes useless because they will be automatically adjusted to their original form according to information from neighboring blocks. Therefore, solutions built on blockchain technologies guarantee data reliability, immutability, and integrity and contribute to building trusting relationships between any number of participants and interested parties (stakeholders).
The principle of block formation
As mentioned earlier, blockchain can be used in various fields, industries, and areas that are in no way related to the cryptocurrency market. Let's look at industries, outside the digital asset realm, that can benefit from using blockchain.
Areas of blockchain application
There are dozens, maybe even hundreds, of areas where blockchain applications would significantly improve the existing data storage system and ensure invulnerability to any modification attempts by attackers or interested parties.
Blockchain use cases
Real estate and land ownership state registers
Blockchain can improve data storage in any state register or database. Many violations are related to attempts (unfortunately, in many cases successful) by fraudsters or criminals to change such logs to take possession of someone else's property. For this, bribery of private notaries or public officials is used, who, for a reward, make changes, breaking the law and becoming complicit in the crime. Blockchain technologies implemented in this area would make such violations impossible.
Logistics
Many companies engaged in transporting goods by air, water, or land are interested in improving their logistics management systems. This area is essential for trucking, postal, and large offline and online retailers. They strive to deliver the goods from point A to point B as quickly as possible with the lowest costs. Existing systems without blockchain technologies cannot guarantee data reliability and effectiveness.
The life cycle of final goods or raw materials
Customers, choosing products or any goods, want to know what raw materials were used during the creation of the product, countries of origin, what the packaging is made of, etc. Blockchain technologies provide an opportunity to verify the correspondence of accurate data with what is indicated on the package.
Voting and e-voting systems
The public blockchain can guarantee e-voting results during any elections at various levels, national polls, or referenda. Thanks to the public blockchain, everyone can watch the process in real time: parties, public organizations, foreign observers, or citizens. Votes are stored in a decentralized registry without the possibility of modification. Thus, the voting results will become impossible to falsify, and such a state body as the Central Election Commission will be subject to disbandment because counting votes and informing citizens about voting results in real time will be entrusted to the blockchain.
The sphere of healthcare
The history of diseases and treatment could be stored in the blockchain. Instead of local databases that fill certain medical institutions, it would be worthwhile to use solutions based on blockchain technologies. Due to pandemics, trust in such a system would be way higher, and border crossing would be simplified. Anyone could check the availability of vaccination certificates for citizens and licenses for doctors. In addition, all documents would be reliably protected from forgery.
In addition to these areas, blockchain is suitable for use in finance, lending, insurance, the Internet of Things (IoT), energy, agriculture, public services, digital identity, public management and tendering, etc. In more detail, we might discuss some areas from this list in the following articles.
By the way, even the world’s most famous crowdfunding platform, Kickstarter, plans to adopt blockchain and is carefully studying this issue.
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