Blockchain. In the past 10 years, the term has become more and more popular thanks to the cryptocurrency known as Bitcoin. As the first and most popular cryptocurrency in the world, everyone came to know blockchain as the technology on which Bitcoin was based.
Six years after its release, around 2014, people began to separate blockchain technology from its original use and began exploring its potential in other ventures. Not long after, Ethereum was created, again highlighting the use for creating cryptocurrencies but now with the purpose of creating a blockchain system with the scope of further penetrating the financial industry with a technology now known as a smart contract.
So how does blockchain actually work?
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network with the scope of making it immune to hacking or fraud. Although the process which makes it so secure and how it works is a bit more complicated, what is important to establish its possible applications is that it can record information that cannot be modified without all parties being able to see it, both the old and the new versions.
What are the possible uses for blockchain technology outside of cryptocurrency?
1. Public and Private information/records:
In 2021, around 42 million people in America were victims of identity fraud according to the AARP. This could be prevented by moving social security numbers, birth certificates, and other sensitive information on a decentralized blockchain ledger.
2. Healthcare Industry:
Similarly, health records and medical history of patients could be stored using blockchain technology, which could improve the collection and accessing of data, reducing costs for hospitals and saving time for medical personnel.
3. Blockchain Logistics:
Given the size of the worldwide supply chain and the number of stakeholders and participants, a blockchain ledger, alongside other blockchain technologies, could improve trust and efficiency in the industry. With records impossible to modify, there would be less stealing, fraud and delays. This can be connected with the supply system of retailers to further improve the process.
There are lot more applications that show promise or that haven’t been tested yet such as blockchain’s use in governmental institutions, media, commerce, payments, insurance, automotive, and manufacturing. In conclusion, I think blockchain has real potential when it comes to useful applications and although most people associate it with cryptocurrency, I think in the next decade more and more uses of blockchain will increase its popularity in real-world business problems.
Reference List:
[1] 34 Blockchain Applications and Real-World Use Cases. https://builtin.com/blockchain/blockchain-applications
[2] Applications of Blockchain Technologies. https://medium.com/@kalyanicynixit/applications-of-blockchain-technology-f1021a74613b
[3] History of Blockchain. https://www.icaew.com/technical/technology/blockchain-and-cryptoassets/blockchain-articles/what-is-blockchain/history
[4] What is blockchain technology? https://www.ibm.com/topics/what-is-blockchain
[5] Blockchain for industries. https://www.ibm.com/blockchain/industries
Although I agree with you on the practicality of the Blockchain for this specific use cases, I believe that the “proof of work” required, as of right now, would hinder ones ability to use this technology for this cases due to the large amounts of energy required to keep the systems running. Nevertheless, in the future newer blockchain technologies are expected to not have to complete this proof of work. Thus, blockchain technology won’t require so much energy to operate, making it easier for it to be used in cases like the ones you pointed out.