Blockchain is one of humanity’s most intriguing inventions. Blockchain technology is an advanced database mechanism that allows the open exchange of information within a business network. A blockchain database stores data in blocks linked together in a chain. The data is chronologically consistent because the chain cannot be deleted or changed without consensus from the network. As a result, you can use blockchain technology to create an immutable or indefinite registry to track orders, payments, invoices and other transactions. The system has built-in mechanisms that prevent unauthorized entry of transactions and create consistency in the overall view of those transactions.
How does blockchain work?
Traditional database technologies pose a number of challenges in accounting for financial transactions. Consider the example of a real estate sale. Once money is transferred, ownership passes to the buyer. Both the buyer and seller can record monetary transactions on their own, but neither party can be trusted. After receiving the money, the seller can easily claim that he did not receive it, and the buyer can claim that the money was sent, even though it was not.
To avoid potential legal problems, a trusted third party must monitor and validate transactions. The presence of this central authority not only complicates the transaction, but also creates a single point of vulnerability. Both parties will suffer from breaches in the central database.
Blockchain anticipates such problems by creating a decentralized, tamper-proof system for recording transactions. In the case of a real estate transaction, blockchain creates a single registry for the buyer and seller. All transactions must be approved by both parties and automatically updated in their registries in real time. Any discrepancy in transaction history will be reflected in the entire registry. These properties of blockchain technology have made it popular in various sectors. For example, they were used in the creation of the digital currency Bitcoin.
Applications:
- Blockchain could displace traditional trading.
- Stock market trades instantaneous
- Help the state to account for various indicators ( example: holding elections) uninterrupted and honest
- The possibilities are endless.
Pros of blockchain:
- Equal rights for all participants
- No centralized organization
- Reliability – impossible to fake data, change, edit, delete, destroy. No corruption or fraud
- Increased trust of the participants in the process
Where blockchain is being used to its full potential
Blockchain is an emerging, innovative technology that is being deployed in a variety of industries. The following are standard use cases in various industries.
Energy
Energy companies are using blockchain technology to create peer-to-peer platforms for energy trading and easier access to renewable energy. As an example, consider the following uses:
Blockchain-based energy companies have created a trading platform for selling electricity between individuals. Homeowners with solar panels use this platform to sell excess solar energy to their neighbors. The process is almost completely automated: Smart meters create transactions, and the blockchain records them.
Thanks to blockchain crowdfunding initiatives, users can sponsor and maintain solar panels in areas without access to electricity. Also, once solar panels are installed, sponsors can receive rent for them.
Finance
Traditional financial systems (such as banks and stock exchanges) use blockchain services to manage online payments, accounts, and market trading. For example, Singapore Exchange Limited, an investment holding company that provides trading services across Asia, is using blockchain technology to conduct more efficient interbank settlement. The introduction of blockchain technology has solved several problems, including the batch processing and manual reconciliation of several thousand financial transactions.
Multimedia and Entertainment
Multimedia and entertainment companies are using blockchain to manage copyright data. Copyright verification plays a key role in determining fair compensation for creators. Multiple transactions are required to capture the sale or transfer of copyrighted content. Sony Music Entertainment Japan is using blockchain services to improve the effectiveness of technical copyright protections. The successful application of blockchain strategies has increased the efficiency of copyright protection while reducing costs.
In the field of entertainment, more and more online casinos are successfully mastering blockchain technology. Crypto-casinos are usually platforms that can offer a full range of online gambling without restrictions. All blockchain casinos offer more than just slots. You can also find poker, roulette or blackjack in digital form here. Live casino is also very popular. Here you sit at a table with professionally trained live dealers and croupiers and can even chat with them or other players. Those who play with Bitcoin and other cryptocurrencies can do so completely anonymously. Although all transactions are transparent and can be tracked by everyone, you can only see the encrypted address of the wallet, but not who is behind it. For players, this means that none of the transactions to or from the casino show up on a credit card statement or bank statement. In addition, transactions are faster and cheaper than with fiat currencies.
Retail
Retailers are using blockchain to track the movement of goods between suppliers and customers. For example, Amazon has filed a patent for a distributed ledger system that will use blockchain technology to authenticate all items sold on the platform. On Amazon, sellers can map their global supply chains, allowing participants (manufacturers, couriers, distributors, end-users and secondary users) to add events to the registry after registering with the certificate authority.
