Before diving into the abilities of the Blockchain, Let us know what it is and what makes it different from other technologies ?

What is a blockchain?

Blockchain can be defined as a distributed ledger technology which stores the information in such a manner that it is permanent and tamper-prof. It works on protocols designed to make an agreement among different parties who do not trust each other so that they can work together to achieve different purposes which benefit the whole group.

Blockchain Technology got its first recognition in the year 2008.

What makes it different from other technologies ?

• Open - One of the major advantage of blockchain is that it is accessible to everyone. Means, anyone can become a participant in the contribution to blockchain technology. Nobody require permission to join the distributed network.

• Verifiable - It is used to store information in a decentralized manner so everyone can verify the correctness of the information by using zero-knowledge proof.

• Permanent - Records or information which is stored using blockchain technology is permanent . Means, one need not worry about losing the data because duplicate copies are stored at each local node.

• Security - It uses hashing techniques to store each transaction on a block which indeed connected to each other. Accordingly, makes it more secure . It uses SHA 256 hashing technique for storing transactions which is immutable .

• Immutability - Data cannot be tampered with in the blockchain due to its decentralized structure. So any change with in it, will be reflected in all the nodes where a individual cannot do any fraud.

• Efficiency - Blockchain removes any third-party intervention between transactions and removes the mistake making which builds the system more efficient and faster. Moreover, settlements are made easier and smooth.

• Cost Reduction - As blockchain needs no third man in between. Therefore it reduces the cost for the businesses and gives trust to the other partner.

These are the vital aspects which consider the blockchain as a unique and beneficial technology .

Major Use cases in the Blockchain world :

• DAO - The idea of a Decentralized Autonomous Organization (DAO) is to ensure everyone has an equal say in particular projects. Every DAO uses blockchain technology to record and enforce rules, financial management, etc. The DAO concept has tremendous merit for any organization without ties to governments or non-profits. More transparency and immutability will always be beneficial, and blockchain technology is the catalyst driving that new narrative.

• Digital Identity - As the world had been introduced to NFTs and the Metaverse, establishing a digital identity has become a hot topic. Whether through avatars or other means, the world seems to transition to digital identities sooner rather than later. That will also bring forth a new set of regulatory requirements.

• NFT's - A Non-Fungible Token(NFT) is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold on a blockchain by ensuring that a sole owner can claim full rights to it. Due to blockchain technology, consumers can now claim sole ownership over some of the most desirable digital assets out there.

• Smart Contracts - Smart contracts are like regular contracts which are coded by the developer. But the rules of the contract are enforced in real-time on a blockchain, which eliminates the middleman and adds levels of accountability for all parties involved in a way not possible with traditional agreements. This saves businesses time and money, while also ensuring compliance from everyone involved. These are used to build some decentralized applications which can be stored on-chain and implemented directly in the browsers.

• DeFi - Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. It eliminates the fees that banks and other financial companies charge for using their services. Individuals hold money in a secure digital wallet, can transfer funds in minutes, and anyone with an internet connection can use DeFi .

Real time events of Blockchain :

• Healthcare Appliances - One of the biggest issues with healthcare is the fragmentation of data across different providers and clinics. A patient’s medical history, records, current providers and mostly everything else a medical doctor would need to know is constantly and securely accessible .The blockchain-platform allows patients and doctors to stay in constant communication, while a steady pipeline of medical data allows for any medical professional to quickly and safely diagnose patients based on a clearer medical history.

• Blockchain Logistics - A major complaint in the shipping industry is the lack of communication and transparency due to the large number of logistics companies crowding the space . The report goes on to say blockchain can solve many of the problems plaguing logistics and supply chain management. The technology can also make the logistics process leaner and more automated, potentially saving the industry some billions of dollars a year.

• Media - Many of the current problems in media deal with data privacy, royalty payments and piracy of intellectual property . Blockchain has the ability which can give the industry a much needed facelift when it comes to data rights, piracy and payments. Its ability to prevent a digital asset, such as an mp3 file, from existing in multiple places would be very useful.

• Blockchain in government - One of the most surprising applications for blockchain can be in the form of improving government. With this technology we can secure government documents and it can also improve the bureaucratic efficiency, accountability and reduce massive financial burdens .

Summing up :

With blockchain, we can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Intermediaries like lawyers, brokers, and bankers might no longer be necessary. It has the potential to create new foundations for our economic and social systems. But while the impact will be enormous, it will take decades for blockchain to seep into our economic and social infrastructure. As the process of adoption will be gradual and steady but not sudden.

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