Blockchain has been there since the evolution of cryptocurrency Bitcoin and at the initial stages the focus was mainly on cryptocurrency itself and people ignored the technology behind it. But you need to know that blockchain is the main technology behind all the cryptocurrencies and nothing could have been possible without it.
Blockchain has become a very popular term nowadays and is often heard on the internet and other digital media. But very few people understand what blockchain really is and its role in today’s modern world. Blockchain, as the name suggests, is nothing but a piece of the block containing information of new cryptocurrency transactions like bitcoins. As and when the individual blocks are completed they are added in a chain thus creating a chain of blocks which is popularly known as the blockchain. Blockchain can also be defined as a digitized, decentralized, public ledger of all cryptocurrency transactions.
So by now, you must be having a clear idea of what blockchain is and therefore today we will focus on the crucial role that blockchain plays in today’s modern world.
Banking & Payments
Blockchain enables faster exchange of money in a more secured and efficient manner and thus more and more banks are getting interested in adopting blockchain technology in order to provide better and more secured transactions for their customers. With the increasing adoption of blockchain technology banking transaction will be faster and more secured than before as the encryption used in blockchain is extremely high level in nature.
Unified Communications
Fast, safe, highly reliable and automated communication is only possible with the help of blockchain and it is already being used in a large scale in certain industries which have implemented pre-built algorithms based on blockchain. Several examples of such applications are call notifications, emails, and system alerts.
As per "Matt Peterson, the co-founder of Jive Communications" who has adopted Bitcoin at an early stage, there are already a lot of communications which are automated but this type of communication based on blockchain are generally asynchronous and non-critical. He believes that blockchain can expand its operational area and allow bi-directional, authorized communications and transactions that can take place more easily in an automated manner and create communications which remain unchanged over a period of time. In this way, the reliability and safety of our communications can be enhanced to a great extent.
Cybersecurity
Any data in blockchain is totally encrypted and verified by using highly advanced and sophisticated cryptography so that it is nearly impossible to hack or make any unauthorized changes. On the other hand, centralized servers are quite venerable to hacks, data loss, human error, and corruption and there have been several situations where data and critical information of reputed companies such as Deloitte, Target, Equifax, and Verizon have been hacked or compromised. However, if the data could have been stored in the cloud using blockchain-based decentralized distribution system the security would have been more robust and such incidents could have been avoided.
Transparency in Government Operations
We all are fed up and frustrated with the way Government agencies work. In any point of time in life, we must have dealt with corrupt politicians or Government officials or must have waited in a long line while visiting the motor vehicles department for some work related to our driving license or car. But the situation can be drastically changed with the help of blockchain and it can result in the removal of bureaucracy and increase in work efficiency and transparency. The Government can easily verify and distribute welfare and unemployment benefits with the application of blockchain and even votes can be verified and counted for legitimacy.
Internet of Things (IoT)
Internet of things has revolutionized the concept of internet and has connected internet with anything and everything we see and use around us like doorbells, smart homes, buildings, cars, and even software powered refrigerators. But the problem is that all these devices are operated from a centralized location which handles communication and they can be easily compromised by hackers and access to your car or your building might go in their hands. However, blockchain can be really useful in minimizing these potential risks as all the data and information is kept in a decentralized manner which provides higher security.
Donations & Crowdfunding
You must have donated to some organization or NGO for some good cause at some point of time in your life. It is indeed a very good activity. But have you ever thought what portion of your donation is actually being utilized for the purpose it is taken for? With the help of blockchain technology, you can ensure that the money you donate goes exactly to the place where it is intended for. Charities based on Bitcoin have already created trust with the help of smart contracts and online reputation system which allows donors to see the complete path through which their donations are made and hence creates transparency in the donation process. Recently blockchain technology has been implemented by UNWFP through which refugees can purchase food by Iris scans instead of using cash, vouchers and credit cards.
Ride-Sharing & Rentals
You might be a regular user of Uber or Airbnb and might think that all the data are stored in a decentralized manner as it operates across different countries in several parts of the world. However, the real scenario is completely different and the platform owners have complete control over their respective platforms and naturally charge a fee for offering their service to us. Blockchain can be of great help in these kinds of situations and enable the creation of peer-to-peer ride-sharing apps that are operated in a completely decentralized manner so that the car owners can pay automatically for parking, fuel, and tolls.
Thus to conclude we can say that blockchain technology is a huge blessing for mankind with endless possibilities and it should be used in a positive manner for the betterment of all human beings in the years to come.