Application of Blockchain Technology

in StemSocial2 months ago

Introduction

Before I dwell into the topic as captioned in the title above, I will like to clear some of the misconceptions around the Blockchain technology, especially Blockchain, Cryptocurrency and Database. Discussing the three along with their differences will add to our knowledge of understanding Blockchain technology.

Indeed the emergence of Web 3.0 technology is already changing our world as it comes with a lot of enhancements to make our lives better and that may be the reason they used to refer to it as Game changer. However, Blockchain technology is just one among many applications running on web 3.0. You may like to read my brief write up on it here.

Diving into the subject matter

Blockchain technology and Cryptocurrency

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[Image source]

Many people could not differentiate the two terminologies from each other, this may be due to the fact that the first time most people heard of blockchain is through mentioning of cryptocurrency along with blockchain, of course yes, each time blockchain technology is being mentioned, most people always mention cryptocurrency along with it or due to the fact that cryptocurrency is running on blockchain technology.

However, cryptocurrency is just one among many applications running on blockchain technology, in fact blockchain technology covers beyond virtual money which is what cryptocurrency entails and there are numbers of applications that are also running on it (Blockchain), when we get to discussion on the application of Blockchain technology, you will understand more.

For now you just assume that Blockchain and cryptocurreny is just like the Internet and the world wibe web. Don't be quick to forget how we reminisced on that in my last blog here

Blockchain technology and Database

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[Image source: Flickr]

Blockchain technology is also a database but specific type of database which makes use of both Block and Chain when storing an information unlike ordinary / centralized database.

Blockchain Technology is called Decentralized database because it eliminates the third party usually called 'Admin' in Ordinary / centralized Database. This is so in order to restrict the power of administrative user(s) and give the control collectively back to all the users on the servers and that is why it will be difficult to manipulate data or information on blockchain technology because virtually all the users on the server need to agree before any manipulation will be succesfully take place. For instance, if A deletes a transaction from his node account, that particular transaction deleted on node A will still be existing on other nodes on the servers.

Blockchain Technology: like I have discussed above is a special type of database that makes use of Block and Chain when storing an information. information will enter through the block and later chain together with previously blocks of data to form a chain of data called Blockchain. It is different from centralized database, especially with respect to storage Structure, decentralization and Transparency as I have explained above.

Application of Blockchain Technology

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[Image source: Flickr]

Blockchain technology operates using digital ledger technology (DLT), it has a wide range of applications due to its decentralized nature, transparency and storage Structure.

As shown in the diagram above, some of the applications include: Health care, Automotive, Insurance, Banking and Finance, Media Entertainment, Travels and Transportation.

  • Health care
    Most advanced countries have succeeded in keeping patients information on a centralized database system for easy access and retriever, however, more could be achieved using blockchain technology because of its potential to protect data from security breech, also its crypt nature makes it ideal to protect patients identity and their medical data from the public. unlike a centralized database, decentralized database gives room for patients, doctors, nurses and all those concerns to share information as soon as needed. some of the countries who adopted blockchain technology in health care sector is Estonia and Tennessee: a state in the Southeastern region of the United States of America. It has adopted it since 2012 still using it till now.
  • Automotive
    The world is tending towards self driving vehicles, as such record management system of the self driving vehicles will be unavoidable. Information about the vehicles, trip, road among others could be checked by other self driving cars on the network. The security, transparency and decentralized structure will guarantee its effective use from payment to safety and delivery.

  • Insurance
    Just like automotive, application of blockchain technology in insurance will enhance the transaction, improve the efficiency transparency and security of the insurance companies.

  • Banking and Finance
    The use of DLT in blockchain technology will provide a lot of benefits in banking sector by ensuring smooth run of payment by eliminating third party option in centralized banking operation system, also Clearance and Settlement Systems, Fundraising, security, Loans and Credit, Trade and Finance and Customer KYC and Fraud Prevention.

  • Media and Entertainment
    Media and Entertainment industry has been struggling with two challenges over the years namely: Security and monetize intellectual property. With the advantage of blockchain technology, the two challenges can be eliminated.

  • Travels and Transportation
    Just like media and transportation, Travels and transportation also have been facing some challenges over the years, some of these challenges include: payments, too much reliance on paper transactions, delay in shipments (especially sensitive pharmaceutical products). All these difficulties can be eliminated by the power of blockchain technology through its features discussed above i.e Transparency, decentralized and storage Structure.

Conclussion

The importance of Blockchain technology goes beyond virtual money called cryptocurrency. Although the intent to create an alternate financial system to solve financial failure of centralized financial system being practiced all over the world led to the invention of blockchain technology in 2008. However, its application has gone beyond that and it has cut across every other sectors from banking to health sector, governance, media and entertainment, automotive, insurance and politics.

Although, politics is not discussed here among its applications yet blockchain technology has high potential to solve our voting system due to its features as discussed above.

Thanks for reading through!

References

1. Chatham House Primer: Blockchain ME
2. 15 EXAMPLES OF HOW BLOCKCHAIN IS REVIVING HEALTHCARE
3. Blockchain Applications in Healthcare
4. 5 Ways Blockchain is Changing the Automotive Industry
5. How Blockchain Could Disrupt Banking
6. The Future of Blockchain in Media and Entertainment
7. HOW BLOCKCHAIN IS REVOLUTIONIZING THE WORLD OF TRANSPORTATION AND LOGISTICS [INFOGRAPHIC]

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Let's just say that blockchain is the future. Due to the immutability, I expect countries to start building many things on the blockchain - financial records, national identities, businesses, etc.

Well said. The issues surround the wide acceptance of cryptocurrency has been the major set back for government to critically consider its backbone (blockchain technology) and fully adopt it. I hope with time, things will change in its favor.

I remember more than 10 years ago, I heard at a conference how blockchain technology can be used in the financial services industry, and this was well before cyrptocurrencies took hold (I think bitcoin was around but that's about it). but never heard anything about it since. Outside of Cryptocurrency the world has been slow to adopt blockchain, but I think that's about to change.

Great article

Thanks @notalk, Its benefits can never be overlooked. I hope we all embrace it as soon as possible.

I read about Mediblocks. They are trying to make research tokens for medical research institutions. I think the application of Block chain is potentially limitless in terms of the fields it can be applied.

Thanks for your feedback, however, Its limitation is due to the fact that blockchain architecture requires a lot of computing power to carry out the task across every node present on the network and that will automatically reduce the efficiency of the computer systems across the network. I stated this in my recent post on. You can read it sir

I guess I schemed through that part. But I recently read that someone was able to make a calculator mine Bitcoin, although I have no proof of the validity, newer technology is doing a lot.