Blockchain technology is applied in many other practical fields. Let’s find out some blockchain solutions that are expected to make a difference in 2023!
Blockchain: What is it?
Blockchain is a technology platform where information is stored in blocks; these blocks are linked together by “coding” to form a chain. Each block in the Blockchain system will be linked to the previous block, containing information about the block creation time along with a timecode and transaction data.
The essence of Blockchain’s operating model is an electronic ledger distributed on a decentralized computer system that stores all information about transactions and ensures that that information is almost immutable. All the data stored on the ledger needs to be verified by a series of computers in the common network.
Blockchain’s principle of operation
Data: Each blockchain network is different, so the data stored will be different types of information.
Hash of the current block: This is the cipher used to identify blocks. Each block has a unique hash function and is seen as a human fingerprint. When there is any change in the block, the hash also changes.
Hash of the previous block: This is the hash function that helps the blocks be linked together and form a chain. When the hash of a certain block is changed, it immediately creates an anomaly in the chain, which can make it easier to detect deviations or attempts to crack the blockchain.
In addition, the first block in the blockchain that is not linked to any previous block is called the “Root Block”.
Benefits of Blockchain Technology
Blockchain solutions are becoming increasingly popular due to the numerous benefits that it provides.
The blocks contain the same data but are distributed in different places. Therefore, the data will remain intact if the block in some places is lost or corrupted.
Blockchain technology is operated independently by computer algorithms and is not under the control of any organization. Therefore, blockchain technology can avoid the risks or interference of third parties.
Once the data is put into the blockchain, it cannot be changed or adjusted but will be stored forever because of the unique hash code and consensus algorithm.
Smart contracts are digital contracts created by an If-this-then-that (IFTTT) code in a technological system. These contracts allow the blockchain to execute itself without the need for a third party. The terms written in the smart contract, when combined with the previous conditions, will be executed, and no one can stop or cancel them.
Transactions are recorded and can be seen by everyone. So the transaction history can be checked and restored. People can even share permissions to allow others to access a piece of information on the blockchain.
Cannot be destroyed or forged
Theoretically, only quantum computers can interfere with and decrypt the blockchain. Blockchain can be completely destroyed when the Internet ceases to exist in the world, but of course, this is not possible.
Blockchain solutions in production
Blockchain solutions are used to improve productivity for production lines with information devices, machines, and software that take on the roles of process optimization, data management, distribution management, etc.
Blockchain solutions in production:
- Manage production and inventory warehouses.
- Controlling the origin of raw materials in supply chains
- Track purchases and sales in the production process.
- Check the origin of goods and input materials.
With its great advantages, blockchain brings many great benefits to the manufacturing industry. Thanks to blockchain solutions, commodity transaction history becomes more transparent. Besides making it easier to track production operations, this technology allows companies to exchange data, show the exact source of information, and track the progress of complex supply chains involving many parties. Blockchain solutions also protect important intellectual property in the manufacturing industry. For example, in the event of a patent dispute, a business can use blockchain technology to prove ownership of that intellectual property. Blockchain solutions establish secure channels in order to secure records and evidence for the sharing of an enterprise’s intellectual property. In addition, this technology also simplifies product protection and inspection procedures.
Blockchain solutions in Education
Blockchain technology is agreed by many experts around the world as the “Light of the Future” because of its great benefits. Many countries around the world have begun to use blockchain solutions in education to teach at a universal level. One of the jobs where blockchain technology can be applied is learning management. All data related to learning work will be stored under Blockchain in a transparent, clear, immutable way. This process will minimize the problem of cheating on grades or degrees in education.
Besides, blockchain technology is also a bridge between students and employers. Recruiters can easily review student information, which is stored on the blockchain, to select the most suitable candidate. On the contrary, candidates can also track information about recruiting businesses and share information in their IDs. In fact, in San Francisco, Holberton School announced a Blockchain-based student management project in the new school year. Sylvain Kalache, the co-founder of Holberton, shared: “The use of blockchain solutions will also help the school save costs in building and operating its own database.”
Blockchain solutions in banking and finance
Payment and remittance activities
By enabling peer-to-peer payments, blockchain can reduce transaction costs and risks while delivering real-time payments and increasing transparency and traceability. With these undeniable benefits, it is not surprising that both central banks and private institutions have begun to use blockchain solutions in their fields of activity.
In fact, cross-border currency payments are not only associated with business transactions, in which money transfers also account for a significant amount of cross-border money transfers. In this context, the close combination of the blockchain system and mobile technology has the potential to bring billions of dollars to many households in developing countries, thereby closing the gap between poor countries and rich countries. There is more, and it is significantly reduced.
According to a survey by consulting firm Accenture, more than 50% of top managers today acknowledge that blockchain solutions are important to the success of banks and financial companies. This technology allows the banking system to save manpower, reduce cumbersome procedures, and speed up the processing of transactions. They believe that, in the future, blockchain solutions will gradually replace the basic operations of banks.
Credit is another area where blockchain solutions can drastically change current operations. For the credit activities of commercial banks, the inefficiency of the credit information system is mainly due to scarce data and poor quality of information, making it difficult to judge the financial ability of individuals. In addition, the difficulty of sharing data among stakeholders and the unclear ownership of user data, which leads to privacy and security concerns, also cause fear of lack of information. effectiveness of credit information.
Currently, blockchain solutions can provide some assistance in solving these problems. Indeed, through a Know Your Customer (KYC) application, banks store customer information in their own databases and then use blockchain technology to upload summary information. off to store in the blockchain system. When there are query requests, the original data provider can be notified using the blockchain, and that query can be executed. As a result, all parties can search big data externally while not disclosing their core business data.
When it comes to credit scoring, the data marketplace can represent lenders and borrowers, through which information is securely exchanged. Data markets are essentially centralized systems, thus requiring different stakeholders to trust a third party to manage their data. This proves that the data used for credit scoring is highly sensitive and potentially valuable. In this context, blockchain solutions can be leveraged to create a trusted data marketplace through information providers, borrowers, and lenders while ensuring the origin and integrity of information and data. Therefore, blockchain systems assist in improving the credit scoring process, thereby reducing the risk ratio and providing certain economic benefits.
In the past, when blockchain solutions did not exist, interbank transactions would take a few days to complete because the international transaction process needed to go through an intermediary. So this is time-consuming and costly.
When the banking system uses blockchain solutions, similar transactions will be settled directly. This means that banks will not need to rely on a network of custodial services and regulators like SWIFT, but they will be able to deal with requests directly via a public Blockchain application.
Blockchain solutions in Agriculture
Blockchain is a ledger consisting of accounts and transactions written and stored by the participants. This is a reliable technology that opens up opportunities for the development of farms, warehouses, and agricultural contract enforcement. Here are some typical blockchain solutions in business:
Focusing on authentic data if there is volatility and impact, 3rd parties will provide important data to make insurance decisions for farmers. Such information could be weather information. The Blockchain technology that provides private key encryption is a powerful tool that provides authentication requirements. Therefore, it can securely link the data about growing and harvesting agricultural products and cannot change that information.
In fact, Arbol3 is a smart crop insurance provider. Here, a farmer can propose a contract that includes premium payments, payouts, and payment-triggered weather events. An investor, acting as a counterparty, can then agree to that proposed contract. Initial and final payments are made in Ether.
Smart agriculture is based on digitizing, controlling, and adjusting the influencing factors of the environment, medicines for crops and livestock, diet, etc. Supporting devices need to be connected and continuously transmit information to ensure sufficient information is provided to the processing system. This information makes it easier for farm owners to know their products’ operation status, growth, or production time more easily through familiar devices such as computers, mobile phones, or computers. tablet. This is achieved by combining IoT and blockchain technology. This is the basis for farm owners to use to retrieve farming information and improve product value. On the other hand, companies supplying agricultural materials better understand, improve products, and reach customers.
Food supply chain
The global food supply chain has seen strong but equally complex developments. Many problems arise for food, such as food traceability, food safety and quality, food trust, and inefficient supply chains, which add to the risks for society as a whole. economy and human health.
The use of blockchain technology helps to establish a relationship of trust between producers and consumers. At the same time, build a reputation for their products by transparently providing individual product information in the blockchain. Enterprises can achieve better product value and thus increase their competitiveness. This will make it difficult for reputable suppliers and poor-quality products to remain in the market and force all suppliers to improve product quality throughout the agricultural and food sectors.
Besides, blockchain solutions provide users with authentic and trusted information about how food is produced and transacted. It helps address consumer concerns about food safety, quality, and environmental friendliness.
Blockchain solutions also give consumers the ability to interact with producers, as they can understand the food production process more conveniently and in more detail. It assists consumers by removing obstacles in the exchange of goods to strengthen their relationship, which in turn strengthens consumer confidence in food safety. From the point of view of regulators, blockchain provides reliable and accurate information for them to implement regulations effectively.
In the last article, Twendee shared with you the Top 4 Popular Blockchain Solutions in 2023. We hope readers have a better understanding of the close applications of blockchain to life.blockchainblockchain solutionsblockchain technology