Most people are familiar with blockchain thanks to bitcoin’s rise to prominence as the leading cryptocurrency. Blockchain is a technique of tracking transactions using technology that goes beyond simply bitcoin, and it may prove to be a game-changer. Despite being in its early stages, blockchain is being adapted for a number of commercial uses and is anticipated to be used for a wide range of purposes in the future.
The potential uses for blockchain technology are endless. Over the next five to ten years, blockchain will fundamentally alter everything we know, according to Mike Almeida, president of Empire ATM Group. “Blockchain technology can simplify many areas of our lives on a platform that can be mathematically proved,”
Blockchain, in a nutshell, is a sizable, decentralized database of transactions that is kept up by numerous decentralized sources. Because of this, there is no requirement for a single central authority, like a bank, to certify that transactions took place. The bottom line is that transactions entered into a blockchain are safe and, if confirmed, typically irreversible.
Although cryptocurrency is now the most well-known application, experts claim blockchain technology can be utilized for various purposes, from data management to regulatory compliance. Justo Paul, the creator of the digital currency Injii, stated that restricting blockchain to bitcoin would be a mistake that would underutilize the technology.
According to Paul, blockchain represents a paradigm shift in terms of who is in power and a dramatic transformation in how things operate. The financial sector and trade aren’t the only areas experiencing problems. It could have a favorable effect on all economic sectors.
Here are a few instances of how blockchain can alter the game in the upcoming years. View our primer to understand more about how blockchain functions.
Audits Blockchain essentially provides a permanent record of transactions, creating an easy-to-follow paper trail for internal and governmental audits. It guarantees accuracy and addresses the issue of obtaining records from several different sources.
CTO of SpringCM Antonis Papatsaras remarked, “The more you save on blockchain, the more history you have in your hands to audit.
- Quality control
Blockchain also has possibilities for quality control, particularly when something goes wrong. Blockchain provides a definitive, contiguous ledger to quickly identify the issue if a recall or inquiry into where anything went wrong is required since businesses can link every component of the supply chain.
Every bag from that batch would be highlighted for removal whether it was freshly packaged in the processing facility, in a truck being transported, or in the retail store already. Events like a salmonella scare could be quickly linked to the source. “Instead of taking days to alert everyone involved, this method could do it instantly,” Almeida added.
- Trading in securities and commodities
Whether trading securities or commodities, blockchain promises faster trades. A process that was previously completed over the course of several days is confirmed and completed in just a few minutes, thanks to the dispersed nature of the technology, substantially expediting the overall experience.
- Sensible contracts
Smart contracts give businesses a method to automatically manage lots of transactions, like those that cross supply chains. They can be used to interconnect services across several enterprises without disclosing confidential or proprietary information.
Nelson Petracek, chief technology officer of TIBCO’s strategic enablement department, stated that “smart contracts… allow enterprises to incorporate logic, via code, into a blockchain network for the automatic management of transactions across participants.”
- Supply chain administration
The supply chain of a manufacturing corporation, for example, can be tracked by a blockchain within an enterprise. Blockchain technology might be used, for instance, to track the transportation of a product from a factory to a warehouse and finally to a retailer.
According to Igor Barinov, co-founder of Oracles Network, “using blockchain for supply chain management, a business owner has more visibility into the processes of the business.” Blockchain can increase transparency and match a company’s interests with those of its ecosystem’s other members, whether they be suppliers or clients if public networks are built.
- Payments and transactions
Perhaps the most well-known use of blockchain technology today is in transactions and reimbursements. Blockchain technology underpins cryptocurrencies like bitcoin and Ethereum. With blockchain support, companies are now developing initial coin offerings (ICOs) for their platforms and currencies.
The price of a single Bitcoin has recently skyrocketed and is currently very close to $10,000. Some predict the surge won’t persist, while others point to the growing popularity of cryptocurrencies as a viable alternative to fiat money. Even some national central banks, like the Japanese J-Coin, are experimenting with their own blockchain-based coins.
According to Bitcoin eranew, votes can be sent over a blockchain in an impartial, accurate, and secure manner, just like money. Blockchain could fundamentally transform contemporary ideas of democracy and increase the reliability of election outcomes by serving as a platform for consensus-building among groups, communities, and even entire countries.
Voting is an intriguing use for blockchain because successful elections require both immutability and transparency, according to Spanos.
- How will adoption of blockchain look like?
How soon will there be widespread adoption of blockchain technology given all the ways it can revolutionize current record-keeping and transaction processes? Not to hold your breath, but adoption will likely happen in the future, according to the majority of specialists.
Blockchain technology adoption will take some time. Adoption cannot take place in a vacuum, even once the applications are created, according to Spanos. To fully achieve the potential of blockchain’s benefits, many diverse stakeholders in the numerous industries that stand to gain from blockchain must adopt it in unison.”