The very idea behind the blockchain network was invented back in 1991. But only after the Bitcoin system was created and launched in 2009, they began to look at it not only from a theoretical but also from a practical point of view. Interesting is that Bitcoin was created by an anonymous group or even one person acting under the nickname Satoshi Nakamoto. This is definitely a nickname since it was not possible to get real information about this person, despite the fact that the supposedly technological innovations belonging to him have seriously changed the attitude to money and finance around the world.
Most blockchains operate on the principle of information distribution within the entire network, which seriously increases its resistance to changes and hacks. Of course, regarding a variety of cryptocurrencies, this is an extremely important condition for the existence of the entire network. But, as it turned out, this principle can be useful for other industries.
And since cryptocurrencies based on the blockchain are developing incredibly actively these days, very soon this principle of interacting with information can become, if not generally accepted, then at least extremely popular. You just need to figure out how to adapt it specifically for each particular industry.
The main attention should be paid to the following advantages of the blockchain:
- System transparency. All members of the network have all the information about its status and processes.
- Decentralisation. There is no single centre, which increases the stability of the system.
- Uniformity. Most often, they use peer-to-peer networks, which means that none of its members has advantages over others.
- High hack resistance. It eliminates the need for security costs.
- The trust. It means that the information from individual network participants is automatically checked for authenticity.
All of these advantages can be very beneficial. Let us now examine how exactly various industries can use this method of information exchange.
It is difficult to find an industry where transparency, reliability and security of information are more in demand. And where they are not ready to invest really large sums in this business. So the blockchain technology is very close to perfection. With it, you can immediately determine exactly where the funds will be spent and for what specific needs. The risk of personal abuse is also reduced.
And there are already examples of such charitable organisations. Blockchain Charity Foundation — BFC. A non-profit organisation that is engaged in the implementation of blockchain technologies to fight poverty. This organisation works all over the world and, we have to admit, quite effectively.
Most of these systems have issues with transparency and trust. In some situations, it is impossible to track when the next task or order is transferred to subcontractors. And this can seriously affect the final cost and quality of the goods, and the profit of individual participants in the supply chain as a whole. So a distributed database is one of the few ways to control a process at all stages. With the blockchain technology, you may worry not about the authenticity of products, transparency of payments and misuse of resources.
Concealment of important information, errors in filling out data, and bureaucracy at its worst are problems of the modern healthcare sector. The use of the blockchain technology is as relevant as ever. It not only enhances the overall security of confidential data that various hackers often hunt for, but also helps to track drug supply chains more effectively, which ensures transparency in pricing. Not to mention that “backdating” the medical history will also fail.
All this, no doubt, is beneficial for patients. But for doctors themselves, there is also benefit: reducing bureaucracy, reducing the amount of paper work and the ability to quickly receive information. And a general improvement in the quality of medical care, which will finally become transparent and understandable.
Fees for artists
Digital piracy, dishonest production agencies, and the banal refusal to pay honestly earned money are problems that many artists face. The creation of an interaction platform based on the blockchain system also looks appropriate. And not only it but also other similar systems for interacting with information, e.g. smart contracts. This method can be used to create an automatic payment system that works only under certain conditions.
Using the blockchain system, you can create a management system that is much more democratic, operational and transparent than most modern ones. In addition, the blockchain can help in ensuring the security of elections since it makes data falsification a task, although real, but very difficult. And full transparency guarantees the impossibility of creating effective and large-scale corruption schemes. However, this is why the introduction of the blockchain in the management system is not as active as we would like.
Money transfers and DAPPs
The effectiveness of money transfers using the blockchain network is a proven fact. The only problem is to introduce this phenomenon into the legal norms of various countries. Which is somewhat hampered by the active opposition of banks that receive a certain commission from money transfers.
In addition, the blockchain system allows you to work without intermediates, through the use of decentralised applications — DAPPs. We can say that they allow individual users to interact with each other directly, while not having to worry about trust issues due to automation of compliance with the terms of the transaction. Nowadays, systems and programs that control the work of peripheral departments and participants are very popular. The blockchain system allows organising the work of the centre no less efficiently. So much so that there may be no need for it. For example, the use of the blockchain could eliminate the Uber system, which takes interest from the driver, directly linking it to the consumer of services.
Internet of Things (IoT)
The automated processes of the blockchain network are perfectly superimposed on the internal interactions of the IoT network , which is already partially decentralised because it collects data from different sources. Blockchain can provide this data with transparency, security and accuracy. Moreover, it is an ideal support system for machine-to-machine transactions (M2M). So it is not surprising that many companies that use automated IoT networks in their work are actively implementing the blockchain, too.
Blockchain is one of the most convenient forms of distributed ledger technology. It provides networks with transparency, accountability, increased security and efficiency. And in most areas of human activity working through the exchange of various forms of information, the blockchain can be useful.