The ideas behind the blockchain were conceived back in 1991, but it was not until 2009, when Bitcoin was developed, that more attention was paid to this technology. Bitcoin was created by a person or group of people under the pseudonym Satoshi Nakamoto. Although Satoshi Nakamoto still doesn’t know for sure, their technological innovations have already had a huge impact on how the world creates and uses money.
Most blockchains work as a distributed ledger that records and protects digital data using cryptography. The technology is often applied to networks of digital currencies (cryptocurrencies), but its decentralized and secure nature also makes it a powerful tool for many other sectors.
With the development of cryptocurrency space and the improvement of solutions based on blockchains, it is very important to learn how to apply this innovative technology in various scenarios.
Eliminating the need for trust and costly security, the blockchain offers greater efficiency. In addition, a decentralized network can be configured as a transparent database, visible to all participants. In this sense, the blockchain technology provides the ability to create a distributed, but a single entry. This opens up opportunities for increasing productivity and security in many sectors and organizations (for example, charitable organizations, supply chains, healthcare, etc.).
Many charities around the world seek to face the challenges of resource management, operational transparency, and effective management. Blockchain technology can certainly help these funds streamline the process of getting and managing funds.
We already have several notable examples of blockchain technology integration into charity. For example, the Blockchain Charitable Foundation (BCF) is a non-profit organization that works to achieve sustainable development goals aimed at fighting poverty and inequality, with the goal of securing block-based philanthropy worldwide.
Most supply chain networks face many obstacles in terms of transparency and efficiency. The current management system is still dependent on trust and is nothing but the right integration between companies and stakeholders.
Blockchain technology can be used to track the entire process of creating and distributing materials in a supply chain network. A distributed database may be suitable for securely registering any associated data, ensuring the authenticity of the products, as well as the transparency of payments and transport.
Operational bottlenecks, data errors and bureaucracy pose a major challenge to the health sector. Blockchain has several options for use in the healthcare sector, including drug monitoring through the supply chain and patient data management.
In addition, the blockchain can offer significant security benefits to hospitals, as these institutions are often subjected to hacker attacks due to the high value of the data they store and their high reliability on them.
Companies are studying the use of the blockchain as a way of archiving digital medical records. Such solutions can reduce overhead and at the same time improve data privacy and accuracy.
Musicians, video game creators, and artists in general often struggle to get the rewards they deserve because of digital piracy, unfair relationships with third-party agencies, or simply because they are not paid for the rights due.
Blockchain technology can be used to create a platform where creative talents have consistent and transparent information about those who rent, buy and/or use their content. This platform can also facilitate payments through smart contracts, which are essentially automatically executed digital contracts.
Blockchain technology can significantly improve management in various sectors. By managing networks and operations more democratically, fairly and safely, blockchain-based systems can be implemented as a tool to eliminate electoral fraud and increase confidence during elections or other constitutional processes.
They can also be used as a powerful tool against corruption, improving data integrity and traceability in a variety of scenarios, from tax collection to distribution of financial assistance.
Payment solutions and applications
When it comes to sending money all over the world, blockchain technology has already proven its effectiveness. Sending cryptocurrencies to friends, families and other people around the world is cheaper and faster than centralized banks and payment solutions can offer.
In addition, centralized websites and applications do not give users control over their data and often do not encourage them, depending on the true value they bring to the platform.
Decentralized blockchain-based applications (dApps) eliminate the middleman, giving users the opportunity to benefit from lower rates, increased incentives, and improved transaction efficiency, as well as the ability to send and receive digital money.
As Vitalik Buterin said, blockchain solutions allow people to work directly with each other, eliminating the need for intermediaries or centralized systems.
“Although most technologies, as a rule, automate suburban workers, performing modest tasks, blockchains automate the work of the center. Instead of firing a taxi driver, Blockchain dismisses Uber from work and allows taxi drivers to work directly with a client. ”
Internet of Things (IoT)
Blockchain and the Internet of Things (IoT) is a natural combination. Blockchain is a decentralized technology, and IoT networks are often used to collect data from disparate sources.
The blockchain allows organizations to maintain an immutable and transparent register of IoT devices, the data they collect and the interactions between them. Among the security features and applications for cryptocurrency, blockchain offers the ideal platform for transactions between computers (M2M).
Since the blockchain is a technology based on ensuring accurate and secure transactions, it is logical that it is integrated with IoT to ensure the responsibility, accuracy, and security of data. That is why many companies have invested a lot of resources in the blockchain-based IoT network.
As a distributed ledger technology, blockchain is able to provide networks and organizations with greater security, transparency, accountability, and efficiency.
Technology improves privacy and eliminates the need for trust. It also creates a valuable Internet where users can perform peer-to-peer transactions without limits.
That is why blockchain and cryptocurrency technology is not only here to stay, but they also have the right to transform all types of industries and aspects of life, from finance, agriculture and big data to the government, voting, and law.