Blockchain is a technology that has taken the world by storm, since its inception in 2008. The Blockchain technology was originally defined for the cryptocurrency termed as Bitcoin but has evolved over the years as a technology that has shaped many different industries. It has the ability to shape our future as believed by many, as a technology which transfers data, in an efficient and secure way.
As stated by Aswath Damodaran, the professor of finance in New York University, the digital currencies like Bitcoin has just started to act as substitutes of gold among the younger generation and the currencies like Ethereum and Bitcoin will be pitted in the future against the paper currencies. That’s why blockchain development companies are in the boom right now.
However, at present the Bitcoin is still in a nascent stage when it is yet to fulfil the criteria that define “money”. These attributes are storing a value, measuring a value and acting as a medium of exchange. The question that follows is “How to define Blockchain?”.
It is apt to define Blockchain as a distributed network, without any third-party intervention, that ensures security and efficiency. However, we need to focus on certain issues related to Blockchain. Let us now highlight on “What are the Issues?’.
The Issues Related to Blockchain
First. Bitcoin has only four ATMs in Belgium and this points to lack of infrastructure. Second is the scaling that results in a delay in transaction validation. Finally, there is lack of standardization, due to absence of regulation as well as abusive nature of anonymous network.
Next, we will delve into “How to use Blockchain?”.
How to Use Blockchain?
Although Blockchain technology is known as the distributed ledger technology, that allows to buy and sell cryptocurrencies in the private markets. But, it can act as the everyday business-to-business transactions, inclusive of enterprise applications.
In this post, the insights are provided on some of the use cases on Blockchain that will add value to your business, if implemented.
Some Blockchain Use Cases
The use cases in Blockchain will streamline the various business processes and provide with the most secure and flexible processes and these are:
- Combining Big Data and Blockchain technology
The Big Data technology requires scalability as one of its most important criteria. The distributed ledger technology of Blockchain provides with unprecedented levels of scalability. The banks are trying to bring an innovative outlook to the services provided by them, that enables them to stay ahead of their competitors, while harnessing the power of Big Data.
Moreover, this technology will provide with the additional layer of security to data storage. Furthermore, the application that sits on the distributed ledger, will provide consumers all over the world with financial services, across a wide range of devices. This is exactly what is required by the consumers, all over the world.
- 2. Secure Decentralized Private Records with Encryption
The traditional databases relied on third parties to secure the shared information with the help of firewalls and restricted access. However, in case of Blockchain, the individual data element is encrypted with the member keys. So, it becomes impossible for the cybercriminals to access the entire Blockchain data, by accessing the key for each of the members.
Some good examples to cite would be the employee and student data records that use Blockchain, where the employers or the students can add grades, new qualifications as well as work positions, accessible by the human resources too. So, the employees can easily share secure copies of the certificates, without faxing the copies, which might be unreliable and forged.
- Maintain Autonomous Marketplace
Tracking and trading of the things of value by the asset owners is one of the primary functions of Blockchain technology. An example to cite is an outstanding invoice. In fact, a verified invoice generated from one of the Enterprise Resource Planning (ERP) packages enables the enterprises to quickly raise the necessary cash. Alternatively, the invoices can be sold in an invoice-factoring autonomous marketplace, resulting in accelerated flow of cash.
Moreover, there is no place for third-party oversight in case of Blockchain transactions. because of its open framework – visible to all transaction participants. The ultimate result is that the assets are viewed in a multidimensional way, in terms of value and that is opportunity value and of course not the face value.
- Tracking Product Quality
Blockchain technology can guarantee product quality and safety by locating the products and materials in use as well as making it easier to track. The example of an automobile manufacturer is perfect to cite here. It uses a Blockchain that encompasses the suppliers, sub-assembly makers, quality-control providers and public regulatory body. This way the recalling of defective parts would be faster and more effective.
- Blockchain and Self-driving Cars
The automakers in the past were unable to protect their vehicles from the onslaught of the cyberattacks. But they can achieve the impossible, through the use of Blockchain for the driverless cars. The technology will be perfected in the test runs but will be ready for the future marketplace.
However, the self-driving cars use the machine learning algorithms – ensuring the safety and security of the passengers and the vehicles. Blockchains help in pooling the data and machine to machine payments. Blockchain is a distributed database that is tamper resistant and storage of the driving data with Blockchain makes sense, as the training data is not compromised.
Blockchain applications are affecting every aspect of the travel industry, whether that be consumers or the transportation providers. A blockchain based platform is extremely beneficial for the consumers as well as the airlines companies- both for real-time luggage tracking and baggage management.
Moreover, there are many start-ups that are transforming their business models based on booking transportations that are based on blockchain-based versions of Uber and Airbnb. Furthermore, there are others who provide information to the digital nomads on the workplaces spread all over the world, imparting a sense of community among these entrepreneurs.
- Smart Contracts
A smart contract is a piece of code that executes an action with Blockchain. With the growth of Blockchain technology and the rise of cross-chain transactions, the smart contracts are becoming more important.
The smart contract is enforced based on the immutable, decentralized, open nature of the Blockchain. This makes a significant impact on the smart contracts, as it is impossible to enforce a contract outside the governmental and judicial contract.
We conclude to say that the use of blockchain requires the creation of new business processes or reconstructing the existing ones by using the Oracle Cloud applications. But the flexibility of the technology is such that it finds application in any industry.
Finally, the Blockchain technology will breed a new kind of entrepreneurship in both the developed and developing countries, that breaks down the barriers imposed by corruption and the inherent bureaucracy, by avoiding the power structures. The most important fact is that the technology enhances the trust in the system.
Blockchain is similar to internet as a technology that acts as a disruptive force which is a game-changer at the same time. Eventually, it will bring a massive shift in power that will affect the masses and emerge as a revolutionary concept.