Blockchain has long been a buzzword in the financial technology field. Thanks to its great benefits, blockchain promises to bring its users a more progressive, modern, and classy society.
What is Blockchain?
What is Blockchain?
Blockchain is a decentralized database that stores information in blocks linked together by encryption and expanded over time to form a chain. Each block in the blockchain will be linked to the previous block with a timecode and transaction data.
In simple terms, blockchain can be seen as an electronic ledger distributed on many different computers, storing all transaction information and ensuring that information cannot be changed under any circumstances. any form. No machine will be able to change or delete the data in that ledger because all the information stored on that ledger will be verified by a series of computers connected to a common network.
The benefits of Blockchain technology for businesses
Use Blockchain to save time
Blockchain technology helps to reduce the transaction time from a few days to a few minutes. Since there is no central authority for authentication, transaction settlement is faster.
Use Blockchain to improve security and privacy
By using end-to-end encryption, the blockchain creates a permanent record of transactions, which increases security and eliminates the possibility of fraud.
In addition, blockchain data is stored on a secure network of computers, making it harder for hackers, viruses, or other potentially dangerous sources to attack this system. In addition, this technology also has the function of supporting data anonymization, restricting access rights, and ensuring good privacy features for users.
Use Blockchain to save money
Another great benefit of blockchain technology is that it helps businesses save money. It can be affirmed that blockchain is a tool to help businesses deploy transactions more efficiently, reducing manual costs such as data aggregation and information processing.
Not only that, but blockchain also simplifies reporting and auditing processes in enterprises. This application will help businesses cut a large number of costs by eliminating intermediaries and third-party providers.
The influence of Blockchain Technology on the future world
Decentralized Social Platforms
Blockchain technology promises to allow social network users to experience a more transparent and secure decentralized social network without a central administrator or control point for users’ personal information.
Decentralized social platforms underpinned by blockchain enable end-to-end encryption of all interactions, providing individual privacy and individual access control over user information. In contrast, mainstream social media platforms exploit user information and behavior for profit, turning users into goods to be sold to contractors.
Blockchain-based social media platforms protect user rights, allowing you to voice your opinion without the risk of retaliation. Besides, Blockchain’s distributed ledger technology allows users to conduct private currency transactions that are not accessible to the scrutiny of third parties. Blockchain users can permanently save their published content without fear of deletion.
Blockchain can enable faster, safer, and more reliable automated communication. Automated or digital communication based on pre-built algorithms is already happening at scale in a number of industries. Examples of this include email, system alerts, and call notifications. Matt Peterson, co-founder of Jive Communications and an early adopter and miner of Bitcoin, told me that while a lot of communication is now automated, this type of communication is generally unimportant. synchronized. He said that “Blockchains can change the playing field to allow authorized two-way communications and transactions to occur more freely in an automated environment and create an immutable communication record.” This will greatly enhance the safety and reliability of communication.
Immutable Digital Records
Essentially, each blockchain is a giant digital ledger that records financial transactions. It can also be used to protect important and valuable records from alteration, theft, or misuse. Property certificates, birth and death certificates, financial transactions, insurance records, legal disputes, and other sensitive documents can be securely recorded and stored on the blockchain.
Blockchain and Healthcare
In the past, it was not difficult to see pictures of families going to the hospital for medical examinations with medical records. Besides, it is not uncommon to forget to bring medical records or lose test results. However, this problem has gradually improved as blockchain technology has emerged.
Nowadays, patient information or drug transaction invoices… are gradually being managed by intelligent management systems at medical facilities. However, these platforms still have many limitations related to privacy, security, and multi-dimensional data connectivity.
Thanks to its optimal information storage capacity and high security, blockchain is considered a universal key to helping solve all problems. It was quickly applied thoroughly and put into electronic medical records to serve the medical examination and treatment process at hospitals, clinics, or grassroots medical lines. This simplifies and shortens the procedure and treatment time.
Blockchain and Travel
Among the benefits that blockchain can bring to the tourism industry, stability and security are most appreciated. The decentralization of blockchain has helped prevent information from being hacked by hackers, ensuring that every transaction is traceable.
Blockchain technology greatly reduces the time it takes to check in with just a simple fingerprint or retina scan instead of having to present documents. Besides, blockchain technology also makes payments easier by fully applying the functionality of a global ledger. In the future, payments in bitcoin and other virtual currencies are predicted to be used by tourism businesses.
Voting and Public Policy
Voter fraud has become a burning problem in society. The encryption and decentralization provided by blockchain technology provide the foundation for an immutable and indestructible database to ensure that voting records are 100% verifiable.
With the help of blockchain, voter identities and political views will be protected from public opinion. A unique protected ID for each vote makes tampering impossible, and votes on the blockchain can be accurately tallied by election officials without regard for duplicate or fraudulent voting. identity fraud.
In 2018, blockchain technology was successfully applied on a large scale in the primary elections for the Democratic Party of Thailand. In the 2020 US presidential election, independent candidate Brock Pierce received the first vote using a blockchain application.
In addition to significantly reducing the risk of voter fraud, blockchain has a tremendous influence on democratic processes. A protected blockchain system that has allowed Americans to vote directly on public policy could wipe out corrupt lobbyists and politicians who do not represent the interests of the American people.
Crowdfunding and Donating to Charities
Donating to a worthy cause is never a bad idea. But what percentage of your donation is actually given to the people they are intended for? Blockchains can make sure your money goes exactly where you need it to. Bitcoin-based charities have built trust through smart contracts and online reputation systems while letting donors know where their donations are going through a safe and transparent register. The UN World Food Program is currently developing blockchain technology to enable refugees to purchase food using IRIS scans rather than vouchers, cash, or credit cards.
Blockchain and Internet of Things
How will Blockchain technology affect the world in the future?
Today, everything around us, from cars and buildings to alarm systems and even kitchen appliances, can be embedded with software, network connectivity, and sensors and is part of the Internet of Things (IoT). Because these utilities operate from a central point for managing communications, hackers can gain access to homes or personal vehicles.
According to Bitcoin and Ethereum experts, blockchain technology can overcome these fundamental security concerns because it decentralizes all information and data. This becomes increasingly important as IoT capabilities expand.
Self-Sovereign Digital Identity
Most of the big data sets are accessed through stolen user identifiers. User IDs and passwords are often vulnerable to robbery and hacking, so password security becomes increasingly complex as users create new accounts and conduct online transactions. For many users, logging into multi-layered sites becomes a troublesome process that keeps them away from established e-commerce sites.
Blockchain-based validated authentication solutions manage identities from online agencies and government agencies and place them in the hands of individuals with the right of ownership. They allow users to secure IDs without sharing them with third-party capabilities, empowering individuals to have autonomy over their unique identifiers.
Additionally, blockchain-protected access allows businesses to securely share and store data without the risk of data theft or fraud. Companies can allow tiers of restricted access to cloud data according to each employee’s secure decompression, reducing the risk of data theft. And blockchain-encrypted identifiers can protect data from hackers as it moves from the cloud to remote workers’ personal computers.
Blockchain and Financial Services
Blockchain technology has the potential to streamline everything in the financial sector, from taxes to investment records and insurance claims.
For example, in taking credit cards. Currently, if you use your credit card to pay for something, the payment goes through four different stages. And merchants will have to pay a processing fee of up to 3.5%. Thanks to blockchain technology, digital currencies like Bitcoin can simplify this and make the process almost free.
Now that Bitcoin has been accepted by larger retailers, large institutions like Visa are developing and looking to make digital money as acceptable as physical cash.
Government Digital Currency
Unlike any other service or currency, the value of Bitcoin has increased significantly since 2017. Cryptocurrencies are among the highest-valued assets available on the market. The value of Bitcoin is not determined by the basic concept of supply and demand. Even with a fixed cap of 21 million bitcoins, the demand for bitcoin will increase again. For this reason, governments are expected to create their digital currencies and take part in the market. This national digital currency is also a potential future application of blockchain technology.
Blockchain technology is creating a digital revolution. We can all look forward to a more secure, transparent, and decentralized digital space in the near future.
Blockchain applications in the field are growing rapidly and continuously. Capturing this technology and applying it to businesses can provide a great competitive advantage for smart business owners.
In this article, Twendee has given readers some of the effects of blockchain technology on the world in the future. This new technology has great potential to improve our lives, so we should grasp the huge benefits this technology brings and exploit it for the greater good.