In the last years thanks to the rise of cryptocurrencies’ popularity we heard talking a lot about blockchains.
Blockchains is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. One of the main properties of blockchain is that they allow mutually mistrusting entities to exchange financial value and interact without relying on a trusted third party, moreover thanks to a complex system of cryptography and authentication they secure data protection and storage and allows to provide transparency(1).
When we hear talking about blockchains the first thing that comes to the mind is cryptocurrencies however this technology could be valuable to businesses of all kinds. Some research show that the technology could far outpace cryptocurrencies in terms of its value creation on business, and that the real potential of blockchain is only at the beginning. Blockchain technology can be deployed in three main domains.
- Smart contract: those contracts are simply programs stored on a blockchain that run when predetermined conditions are met. These conditions are simply represented by statement like “if/when/then” that are then translated into code on a blockchain. When the statement is met the smart contract thanks to a network of computer can self-executing and self-enforcing the actions. smart contracts can be used and be helpful in many different field like for e.g. construction, mortgage, land registry, insurance and many others. Those contracts represent a cheaper, faster and more secure alternative to the traditional law contracts (2).
- Identity management: with the raise of the internet age and online platforms one of the main issues has been the identity security. Individuals, organizations and governments are securing private information online. However, there are always people who try to steal and make profit form those secret information. Blockchains are characterized by a tremendous high level of security thanks to the independent process of authentication and verification. This mechanism that is currently used to authorize cryptocurrency activities but it can be deployed in other types of verification including identity verification of individuals or organizations(3).
- Cross-border payment: traditionally making international payments, especially when multiple currencies are involved, is slow and expensive. The main reason is because many banks in different location are involved in the transaction. Thanks to blockchain technology this process could be done in a much faster and cheaper way. transfer fees can be up to 20% of the amount transferred blockchain mai decrees costs to just a fraction of that(3).
We are only the beginning, many other application of blockchain technologies are possible. Several companies and start-up are experimenting every day new implementation of those technology in different industry. Some example are the start-up Civil which is working to combine journalism and blockchain in order to promote sustainable journalism(4). Bloq that develops blockchain ecosystems that improve business infrastructures and it protects data from breaches.(4). Doc.ai that implement artificial intelligence and blockchain tech in a platform that combines a patient’s medical data from pharmacies, hospitals, doctor visit etc etc under one secure app. The app allows patients to manage all their personal medical data and get prediction about their risk for future disease(4).
The deployment of blockchain technology seems to have all what it need to become one of the most important innovation of these decades. Let me know your opinion.
references
(1) https://www.euromoney.com/learning/blockchain-explained/what-is-blockchain
(2) https://www.ibm.com/nl-en/topics/smart-contracts
(3) https://www.investopedia.com/tech/forget-bitcoin-blockchain-future/
(4) https://builtin.com/blockchain/blockchain-companies-roundup
