Since Satoshi Nakamoto published an invention he called bitcoin in 2009, cryptocurrency has had its ups and downs. People have looked beyond bitcoin as being a controversial currency used for criminal activity or black market transactions. Into the endless possibilities that it presents. So blockchain is a public ledger that records every bitcoin transactions around the globe.
The blockchain is now an exciting new alternative to traditional currency, centralized banking, and transaction methods. That is not only changing the way we handle financial transactions but also alternative uses that will change the world.
In simple words, blockchain is a distributed ledger that maintains a continuously-growing list of every transaction across every network distributed over tens of thousands of computers. This makes hacking very hard and is more secure than any other method for banking.
In this article we will discuss few applications of blockchain
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Smart contacts
The term ‘smart contract’ was first coined in 1993. Thanks to the 2013 release of the Ethereum Project(The Project “is a decentralized platform that runs smart contracts) . Applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference”.
Let’s see how this plays out in a supply chain example. Buyer B wants to buy something from Seller A, so she puts money in an escrow account. Seller A will use Shipper C to deliver the product to Buyer B. When Buyer B receives the item, the money in escrow will be released to Seller A and Shipper C. If Buyer B doesn’t receive the shipment by Date Z, the money in escrow will be returned. When this transaction is executed, Manufacturer G is notified to create another of the items that were sold to increase supply. All this is done automatically.
Companies like Slock, which is an Ethereum-enabled internet-of-things platform, uses this application to allow customer to rent bicycles where they can unlock a smart lock after both parties agreed on the terms of the contract.
Cloud Storage
Cloud storage will be another application that businesses can take advantage of. Storj is one such company that’s offering secure cloud storage while decreasing dependency. Storj founder Shawn Wilkinson told VentureBeat that “Simply using excess hard drive space, users could store the traditional cloud 300 times over,” like how you can rent out your home on Airbnb. This increases the speed and decreases the device complexity exponentially.
“I don’t need a hard disk in my computer if I can get to the server faster… carrying around these non-connected computers is byzantine by comparison.”
Steve Jobs, Co-founder, CEO and Chairman of Apple Inc.
Supply chains
Another intriguing use for blockchain could be in tracing food from its origin to your plate. Since blockchain data is immutable, you’d be able to trace the transport of food products from their origin to the supermarket. and if there is a food-borne illness, blockchain would allow the source of the contaminant to be found considerably quicker than it can be now.This helps us to identify and destroy a pandemic or an epidemic right from its roots.Also since data is immutable it is resistant to hackers or infrastructure problems.
Phil Gomes says that “Most of the things we buy aren’t made by a single entity, but by a chain of suppliers who sell their components (e.g., graphite for pencils) to a company that assembles and markets the final product. The problem with this system is that if one of these components fails ‘the brand takes the brunt of the backlash.’” Using blockchain technology would “proactively provide digitally permanent, audit-able records that show stakeholders the state of the product at each value-added step.”
A few companies like Provenance and SkuChain are attempting to solve this issue.
Digital IDs
More than 1 billion people worldwide face identity challenges. People’s online identities are also often attached to their financial details. For hackers, compromising someone’s online identity, whether through password cracking or unlocking a large centralized database of personal details, is the digital equivalent of a gold mine.
The blockchain protects your identity by encrypting it and securing it from spammers and marketing schemes.
Many companies like nuggets and Microsoft are working on this issue recently Microsoft is creating digital IDs within its Authentication app which is currently used by millions of people. It would give users a way to control their digital identities.
“A blockchain ID system adopts a user-centric approach, eliminating central points of failure by empowering individuals with self-sovereign possession over their own data.”
Al Johnson, the CEO and founder of the Nuggets blockchain identity and payments company
Internet-of-Things (IoT)
Any material object is a ‘thing.’ It becomes an internet of things (IoT) when it has an on/ off switch that connects it to the internet and each other. By being connected to a computer network, the object, such as a car, become more than just an object. It is now people-people, people-things, and things-things. The analyst firm Gartner says that by 2020 there will be over 26 billion connected devices. Others raise that number to over 100! How does the IoT affect you? Your printer can automatically order cartridges from Amazon when it runs low. Your alarm clock will change your time for brewing coffee, while your oven will produce an immaculately timed turkey for Thanksgiving. On a larger scale, these can be used to develop cleaner environments, more efficient energy use, and so-called ‘smart cities,’ to improve how we live and work.
Now imagine these to be hacked what do you think would happen the devices would run amok and you would lose control over your own house but if connected by a blockchain. It is relatively difficult and almost impossible to break through the security which is offered by blockchain.
Conclusion
It’s important to note that for the blockchain to work, the node-to-node network must be motivated and agree to work under ethical standards. Once, and only if, these standards are adhered to, the blockchain could become a powerful tool for improving business, conducting fair trade, democratizing the global economy, and helping support more open and fair societies.
