#8 Possible Applications Of Blockchain Technology.
- 31 August 2020
- Posted by: Sanjana Gavand
- Category: Technology
Blockchain is an online distribution system that can store information. What makes blockchain so secure is it’s peer-to-peer connect which has a combination of very complicated algorithms, making it very hard to tamper with. A hash also serves as the identity of the block, every block has unique hash which can be used to trace the particular block or the information it holds. Some of the major factors of blockchain technology are —
- Consensus — A blockchain has a decentralized database. This reduces the probability of system failure and also makes it a very secure network of interconnected information.
- Security — A blockchain, as the name implies, is a chain of digital “blocks” that contain records of transactions. It is based on interconnected blocks which are linked to the previous block, each block stores encrypted information and is protected by a hash.
- Provenance — Every block has a unique hash. A hash is a combination of numbers and letters of a fixed length created by a complex mathematical algorithm. It serves as a unique Identity for each blog. Since each log connected to the previous blog and blocked after that it creates a chain, hence the name blockchain. Due to this, one can trace a particular event back to its origin.
- Trust — Since there is no central authority for maintaining a database no third party can have access or can tamper with the data. The peer-to-peer networking system also maximizes the efficiency of the functioning of a blockchain, which makes it very reliable.
Although the usual understanding is that this technology is only associated with cryptocurrency and its application is not only limited to the financial sector, but this is a very robust technology that could be widely accepted in various fields of applications. There could be may use cases for blockchain –
1. Food Production
Almost 82% of the Indian population is dependent on agriculture for their livelihood which makes up to 18% national GDP. However, it is the most exploited sector. Blockchain could potentially tackle the challenges currently faced by the agricultural supply chain, by linking transactions, introducing smart contracts, and encrypting all the information, making it makes easy for farmers to supply fresh produces to the end consumer.
In the banking sector, the major concern is to complete the KYC process of the customers before they could approve any transaction. This process is very vital for banks to prevent fraud and unfair trades, however, it’s very time-consuming. This is where the blockchain comes in. Blockchain can enable banks to do customer identification by Blockchain-enabled digital ID.
3. Stock/Financial Trading
Technology plays a very big role in trading. Algo trading, T+2 days settlement, online fund management, and instant fund/security transfers are only possible due to technology. But the concern about the third party and higher commission rates still remains, blockchain could be the answer for this. Blockchain could eliminate the requirement of brokers and intermediary since it would create a chain of information that would be interlinked.
4. Smart Contracts
Blockchain could even be used to enter into contracts. These are called smart contracts, they are written in code and are publicly available on the ledger. When an individual and turns into a smart contract and the stated terms are met the code executes the ‘after’ command of the agreement automatically. This kind of contract is much more convenient trustworthy and efficient, and also says a lot of time and money spent over entering time completion of an agreement.
5. Real Estate
Probably the only major concern, or you can say the biggest downside of the real estate industry is the involvement of intermediary agents and brokers. Blockchain could help eliminate this involvement and cut down costs. This could boost the real estate industry and could open up a lot of options to the customers.
From personal identification to passport and Visa identification blockchain could play a major role in the airline industry by cutting down long queues for the same and maintaining a record of the passengers in a much convenient manner. The allied industry is trying to implement blockchain for the smooth processing of operations and to maintain coordination amongst and within the airlines.
7. Personal Identification
Be it for banking or trading for entering into a contract, verification of personal identification is a very crucial factor yet it is the most time-consuming as it takes a lot of time to process and verify information of an individual. This challenge is faced by many industries and blockchain is going to change that by maintaining highly encrypted unique identification for each piece of information. Blockchain can store personal information of an individual in a single block which can be accessed and processed in multiple ways, helping an individual to optimize and overcome personal identification and verification in different contexts.
Apart from person identification blockchain can also store an individual’s medical history which doctors can review easily and give you the required medical assistance. This would not only solve the problem of having to explain your medical history every time you need medical assistance, but also will help doctors to keep a better track of their patient’s medical history, healthcare plans and financial coverages.