Are You Working With Digital Assets
- If yes then read on and continue to next step
- If no then do not use blockchain
Blockchain is an ideal solution for those processes which have digital native assets. This means normal assets that can be digitized. There is a simple and straightforward process where a digitized version of the physical representation is created with all the necessary details. For example, real estate properties can be digitized by storing all the vital information.
The Future Potential Of Blockchain
Blockchain means a digital system for executing and recording transactions can be visualized as a building block constructed from intelligent algorithms and collected data, and secured by cryptography. Whether in financial markets, healthcare, or the military industries and governments are using blockchain technologies to redesign hi-tech paradigms . According to Gartner, blockchain is among the top 10 strategic technology trends for the years 2018 and 2019 . Cearley, Burke explain that using a public blockchain can remove the need for trusted central authorities in record transactions and dispute arbitrations. This is because trust is built into the model through immutable records on a distributed ledger. Blockchain technology is considered by some as the most significant invention after the Internet, and is widely anticipated to resolve trust issues through peer-to-peer networking and public- key cryptography solutions . It is commonly agreed that the technology still needs time to mature , but we need to be ready for adoption of this unprecedented architype. The potential of blockchain technology to radically transform interactions should raise critical questions for governments and society.
Removing Supply Chain Inefficiencies And Lowering Costs
How blockchain will transform supply chain management
In supply chain and trade finance, verification of documents takes several days for transactions to complete. This is due to manual documentations. There are high inefficiencies, fraud, and the process is also rated for the high cost.
Different blockchain platforms are being applied to solve this problem. They include IBMs Batavia, R3s Marco Polo, Digital Trade Chain operated by various banks, and the Hong Kong Trade Finance Platform. For instance, they make it possible to complete these transactions in a few minutes at a fraction of cost.
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Why Is Blockchain Important For The Environment
The now well-documented fact that we are severely polluting the world we live in and irreversibly destroying resources has given governments concerted efforts to address the problem an ever-increasing momentum since the 1990s. And we are only now beginning to see the results of these efforts.
For example, the ozone layer, which thinned by about 10% in the 90s due to the increasing use of CFC gas, has started to increase in thickness by 3% per decade since 2000 because of the measures taken against the use of this gas. This is great news. Is it enough? No, it is not. This is just the beginning and moreover, some countries, including China, are still claiming to be a threat to the ozone layer with some of the chemicals they produce.
It is right that environmental problems should be addressed in a coordinated way by governments. But because of the complexity of the system, the different interests of the players and the high cost of environmental investments, there is still a long way to go. Governments should first agree on any issue, then the necessary auditing and measurement/reporting mechanisms should be established in accordance with these agreements, and finally, private, and public players should act in accordance with these rules, measure the results of their actions and report them to the relevant authorities. This is a very slow mechanism. This slowness may lead us to leave an irreparably damaged planet as a legacy for future generations.
Wasn’t There Anything Like This Before
There have been systems on the internet. Remember Limewire and Napster? They were examples of decentralized services.
But they had a flaw: those services weren’t very good at preventing duplicates of files. This is called the double spendingproblem. The double-spending problem is all about preventing people from spending money or using assets twice on two different things.
Your bank solves that problem by checking with its centralized database to see if an asset has been spent or used more than once. The blockchain solves that without the need for a centralized database.
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Platforms And Marketplace For Traders
A report by global community of blockchain leaders Enterprise Ethereum Alliance, named Real Estate Use Cases for Blockchain Technology, which was released in 2019, said that asset management investors are constantly looking for ways to increase or preserve liquidity options, allowing them to improve positions and manage risk.
“A pension fund, for example, might own several large commercial buildings in one city but might want to expand into another city either as part of a diversification or portfolio expansion strategy. They might not, however, have the desire to buy an entire building or an investment block. Instead, they might want to buy a smaller securitized portion of a property,” says the report.
Blockchain can help tokenise real estate and exchanges like cryptocurrencies, thanks to the inclusion of smart contracts in blockchain platforms. Blockchain technology is disrupting the real estate sector and creating innovative, new business models. In the first place, real estate tokenisation creates alternative ways for financing projects, while enabling the transfer of assets in a transparent and trustless manner,” says Assudani.
Examples Of Blockchain Government Applications
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Blockchain Technology Applications In The Environment
When blockchain technology is profiled alongside the environment, many are only interested in the supposedly excessive energy consumption crypto mining generates. However, the use of blockchain technology in the supply chain, businesses, and other sectors help enhance the efficient use of resources, a development that helps achieve sustainability. This has an overbearing impact on the environment.
Blockchain technology has also found applications in environmental disaster management. There is a growing number of startups that have designed unique blockchain solutions to predict potential volcanic eruption events and immediate response to such hazards. Through blockchain, car emissions can be monitored and curtailed by players in the automotive industry and more.
Example of blockchain application in environmental sustainability
The various environmental data generated to curb climate change can be stored on open blockchain networks to give increased access to such data. Furthermore, you can gain a reward for recycling or install a tracking mechanism to reduce waste.
How Can Blockchain Be Used To Its Full Potential Final Points
Blockchain technology obviously has its merits and governments, stakeholders in the capital markets, regulators, and innovators need to start asking the critical question, what can blockchain do for our future? From this question would we start seeking new ways to integrate blockchain and distributed ledger technologies into business processes, the Internet of things , and other digital systems, a move that will enhance transparency, security, and efficient resource use as the case may be.
A piece of innovative technology will find no relevance if it is not applied, but with a mainstream embrace, such tech can transform our world. Blockchain is one such technology. Deloittes global blockchain survey underlines all its benefits.
Learn Blockchain!
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Blockchain For Business Requirements
As Lucas explains, the blockchain that supports Bitcoin was developed specifically for the cryptocurrency and had to be modified to meet the rigorous standards of businesses. There are three main characteristics that separate the Bitcoin blockchain from a blockchain designed for business. Assets over cryptocurrency: Blockchain can be used for a broad range of assets like cars and estates, as well as intangible assets such as bonds and securities. Identity over anonymity: Bitcoin thrives on anonymity, while in blockchain for businesses it is required to know exactly who each participant is dealing with. Selective endorsement over PoW: Consensus in a blockchain for business is not achieved through mining, but rather through a process called selective endorsement. This allows the control of exactly who verifies transactions.
Application In Copyright Protection
Blockchain can secure copyrights
There are countless startups using blockchain to allow their customers to secure IP rights. Once artwork is registered on the platform, customers can protect their work from being used illegally without their permission. The owners can also pursue legal injunction in case of violations using the certificate provided on the platforms.
For instance, Blockai and Copyrobo use blockchain and artificial intelligence to help artists to protect their art on the internet in seconds. They can create a timestamp or fingerprints on the blockchain and they, in turn, will get a copyright certificate to prove the copyrights. These platforms discourage infringement of copyrights and encourage licensing.
Bernstein Technologies GmbH and other companies also use blockchain to support companies through the innovation lifecycle. Companies can register inventions, designs, and proof of use in the platform. This, hence, creates a trail of records on Bitcoin blockchain. This way, companies can secure their trade secrets and other notarized information using blockchain.
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Examples Of Blockchain Internet
Disadvantages And Challenges To Bear In Mind
Early implementations of blockchain have exposed some of the technology’s disadvantages and challenges as well, experts cautioned.
“That’s the biggest weakness in blockchain today,” Menting said. “It all the parties involved adhere to standards, but someone could lie. So there needs to be checks to confirm information. There needs to be some mechanism behind the information to confirm it.”
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Blockchain Applications: What Is Blockchain Used For
This Tutorial Explains Various Blockchain Applications, Use Cases & Examples. It also Includes Steps for Integrating Blockchain in Organizational Settings:
This previous introductory Blockchain Tutorialcovered the basics of blockchain technology. Now, we will go beyond the basics by looking at how the technology is being utilized today in the organizational and individual settings including in healthcare, banking, cryptocurrencies, and Decentralized Autonomous Organizations.
We will look at Ethereum and Bitcoin as popular examples of blockchain. We will also see how the technology can be implemented within an organization and what limitations such organizations expect in adopting it.
What You Will Learn:
And So As We Blaze Through Early Stages Challenges Arise
Blockchains detractors pinpoint several issues that need to be solved before the technology can fulfil its promises of greatness. Whether youre on the team that thinks these can be solved and its just a matter of time, or on the one spousing that we should be focusing on re-inventing centralized solutions altogether, its good to go through these objections quickly:
Blockchain problem #1: Trust issues
Ethereum-based stablecoin issuance. A non-fun thought would be to ponder what could happen to these billions of dollars given smart contract failure. Source:.
The trust problem with blockchain technology originates in its very nature.
There are nearly 170 million unique Ethereum addresses, and this number will only grow through time. Several billions of dollars are locked in DeFi protocols, which increased in individual users by almost 65% just in the second quarter of this year. DeFi addresses only represent 1.81% of all existing Ethereum addresses, suggesting a possibility for great expansion.
And, along with this spectacular growth, weve witnessed hundreds of millions of funds being stolen, lost, or locked forever because of hacks, theft, rug pulls, and system failure. About $120 million were stolen from DeFi platforms in 2020, which creates an aura of lack of security surrounding the industry. Despite the fact that blockchains aim to be trustless networks, users still need to trust them to do their job securely.
Blockchain problem #2: Costs
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Learn About All The Different Applications And Use Cases For Blockchain Technology
The idea of a blockchain was first conceived as the mechanism supporting Bitcoin. To solve the double-spending problem associated with digital currencies, Satoshi Nakamoto devised an immutable ledger of transactions that chains together blocks of data using digital cryptography.
While the idea works extremely well for Bitcoin and other cryptocurrencies, there are loads of other useful applications of blockchain technology. Here are 15 of them.
Blockchain In Government Sector: Ensuring Safety Of Public Records
The government sector has been actively trying to tap on the full potential and power of blockchain technology. The largest record of each individual in the country is stored in a government database and is the perfect target for hackers. Mitigating these risks is crucial for any government. With the blockchain data structures deployed for secure storage of such data, governments can harden the network security and prevent any breach. It reduces the single-point-of-failure risk and ensures minimum cyber breach in the data.
Through decentralization, blockchain can offer more transparency in government operations. It can ascertain its people that there is zero corruption and they can look into and verify the data anytime they want. Moreover, it is also not feasible for any government to reserve large chunks of resources in this. They need to be efficient and reduce costs at all costs.
Blockchain technology can be implemented to reduce the redundancies in operations, streamlining it, and decreasing any burden on audits. It could also speed up the process of reconciling funds and many other government operations. The governments of many countries are already implementing blockchain technologies in many of their operations.
Real-Life Examples
#1: Reducing Voter Fraud
#2: Storing Public Data
The government of Estonias Guardtime has joined hands with Ericsson to create a new center for database storage and management so that public data can be securely moved to blockchain 2.0.
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Pros And Cons Of Blockchain
For all of its complexity, blockchains potential as a decentralized form of record keeping is almost without limit. From greater user privacy and heightened security to lower processing fees and fewer errors, blockchain technology may very well see applications beyond those outlined above. But there are also some disadvantages.
Improved accuracy by removing human involvement in verification
Cost reductions by eliminating third-party verification
Transactions are secure, private, and efficient
Transparent technology
Provides a banking alternative and a way to secure personal information for citizens of countries with unstable or underdeveloped governments
Significant technology cost associated with mining bitcoin
Low transactions per second
History of use in illicit activities, such as on the dark web
Regulation varies by jurisdiction and remains uncertain
Data storage limitations
Having Said All That Heres The Scope Of The Future Of Blockchain Technology
If you didnt appreciate the long introduction , you might as well do the fact that its over.
You now know the issues preventing blockchains from reaching what some think is their ultimate destiny. And weve taken a good hard look at where we are in the grand scheme of things. We now can talk about how blockchains are meant to impact a variety of industries in the future. Aside, of course, from the obvious financial implications.
Some of these industries are
Although they might sound similar, both concepts in the previous subtitle are not the same thing. Blockchain games happen on-chain, while blockchains could, without a doubt, find use cases in the videogame industry. Both of these are attractive applications that could signify something, so its worthwhile to take a look.
Josh Chapman, MP of Konvoy Ventures, a firm dedicated to esports and gaming, has said about this: Gaming does not need blockchain blockchain needs gaming. Blockchain will only see mass adoption and mass application once it provides significant value to the video gaming ecosystem. And, indeed, one of the very first iterations of NFTs happened thanks to gaming: CryptoKitties a Tamagotchi-like game centered around breedable, collectible, cute creatures called CryptoKitties. Thanks to its blockchain presence, a kitty is always unique, unreplicable and indestructible.
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