The concept of blockchain emerged nearly a decade ago, facilitating the need to provide a decentralised, traceable and unalterable database for the proper functioning of evolving technologies like cryptocurrencies at that time. Bitcoin was one of the most famous players in the rising space enabling users to transact in the online world without the interference of banks using this technology. However, the potential use of blockchain is not limited to cryptocurrencies. It can be employed for various other use cases in the modern world which this article aims to discuss.
Blockchain essentially is a virtual peer-to-peer network of data storing and sharing systems in packets (termed as ‘blocks’) such that every block is connected to each other. Each time a new array of data is stored, a new block is created with its unique address. Every new block is connected to its respective previous block with structures known as chains. The new block’s address depends on the previous block in a way that its traces are stored in the previous block. It becomes nearly impossible to alter or hack the data by external means as the creation of a block is irreversible. With the unmatched privacy and authentication of blockchain, it can be integrated into various modern sectors such as:
*Financial instruments- A controlled structure for financial transactions can be made possible using blockchain. It leaves no place for hiding transactions therefore we can imagine a corruption-free society in the upcoming years. The government across many countries has started using Central Bank Digital currencies(CBDC). For example, India has officially announced a blockchain-based sustainable transacting system for its citizens named E-Rupee. Various tokens of different values are issued which can be exchanged with other items much similar to older systems.
Voting- Blockchain can be used to create a transparent voting system which can prove to be the most secure and resistant to fraud and manipulation. By doing so we can increase the accuracy of elections worldwide while saving the amount of capital and time invested in voting too.
Non-Fungible Token(NFT)-NFTs use blockchain to protect the originality of the content enabling the exchange of digital arts in the form of images, audio, and videos while retaining the ownership of the content.
Smart Contracts- These are essentially digital contracts which use blockchain to execute themselves when a certain given condition is met. It can be used across various scenarios like real state transactions when a fixed amount is transferred to a person, the ownership is also transferred to the buyer. In stock and commodity trading, it can be employed to automate the task of buying and selling the ownership of the commodity. It can also be used in supply chain management, lending money, usable products, etc.
Healthcare - Blockchains can be used to create secure interoperable health records that can be accessed by patients and health institutions. An accurate medical history ensures proper treatment during an injury or in an emergency situation. Irrational reasoning for the disapproval of deserving health insurance sum can also be avoided with the help of blockchain.
Exams results- The results of exams can be stored on a blockchain which ensures a transparent system and increased data security system making the records trustworthy and so as the student and the institutions.
Identity maintenance- Blockchain can track the identity of an individual his/her birthplace, previous travelling history, criminal records, etc. This saves the time and energy of the migration department and makes their job easier. It can also help to segregate deserving candidates for visa approval or other government schemes implemented for a specific set of people.
Most blockchain available today work on the proof of work (POW) systems which requires a kind of specific puzzle to be solved to validate the transaction. Any computer can validate this according to its computing power. The challenge associated with it is that it needs a significant amount of energy to validate each transaction. This energy sums up to a big number if seen on a large scale. The current technology of validation cannot be hacked using the current systems. However, Quantum computers have the ability to do so with their immense computing power. Therefore more efficient and infallible blockchains can be imagined in the upcoming future.
The transformational promise of blockchain technology extends well beyond cryptocurrencies. It has the potential to retain the originality of content and institutions in the world of realistic deep fakes and counterfeit documents. Its capacity to provide openness, security, and automation has created new opportunities for innovation across a wide range of sectors. We're likely to see a major transformation in the way we do business, handle data, and generate trust in our increasingly digital environment as we continue to investigate and utilise the powers of blockchain.
References [1] Applications of Blockchain Technology in Medicine and Healthcare: Challenges and Future Perspectives