Blockchain technology is one of the exciting developments of this century, having great potential to revolutionize many industrial sectors. But the question arises: What is blockchain technology, and how can it be used in our everyday lives?
Keep reading, and let’s find out!
What is blockchain technology?
In simple words, blockchain is a combination of two words; “block” and “chain.” It is a system of storing information such as digital transactions in a way that cannot be changed. The Block stores the information and the Chain is the record of the Blocks. It is Blocks of information that sit on a chain also known as a Digital Ledger.
Think of Blockchain as a type of advanced database that captures, records, and replicates data to make sure it is accurate.
Decentralization, transparency, immutability, and no third-party involvement are the main pillars of blockchain technology, and most of the blockchain projects are built around these core properties.
Applications of blockchain technology in everyday life
Blockchain technology is widely used in our daily life. Some of the examples are given below.
The internet has become a part of our everyday lives, and today digital security is the primary concern because hacking is common.
Blockchain technology can help in this situation because of its potential to track and manage digital identities. It can not only store information securely but manages everything in one place, reducing the overall expenses.
The Healthcare sector has tons of information such as patient records. It is not easy to manually handle this considerable amount of data. Although the existing digital system is efficient, blockchain technology can make it more secure and easily accessible by combining different databases, comparatively saving a lot of time.
Transparent voting is essential for a successful democracy. Blockchain technology can help organize a transparent, reduced-cost, online voting system while ensuring voters’ privacy.
In 2014, Liberal Alliance in Denmark was the first organization that used Blockchain technology for voting.
Blockchain-based smart contracts can be used in the construction industry. Using these contracts, involving parties in the project set their rules and regulations and work accordingly. Each milestone is appropriately recorded, and payments are released accordingly.
If any of the conditions are not met, the system will act according to predetermined terms. In this way, the entire system works in a manageable manner, where everyone involved in the project has access to the information and is accountable.
Blockchain can significantly improve the efficiency of the entire construction industry, reducing the chances of disputes.
Government databases store the information of the entire country and can be a perfect target for hackers. It is challenging for the current system to manage this large amount of data.
Blockchain technology can significantly mitigate the risks by ensuring more transparency, immutability, and accessibility. Governments can trace back any transaction to ensure there is no corruption in the system.
There are many other examples of blockchain technology implementation in various sectors such as the food industry, retail industry, financial services, real estate, etc.
Record keeping is the biggest concern in most sectors, and blockchain technology is the best solution that ensures speed, low cost, streamlines, and easy access within the network.
Many industries are warmly embracing blockchain technology, while some are still reluctant. But the truth is, blockchain technology is here to stay!
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