Blockchain Beyond Cryptocurrency: Decentralizing the Internet for Greater Freedom
Although most often associated with cryptocurrency, blockchain technology has a myriad of other uses.
The digital ledger can be used in any application that requires reliable, immutable, transparent record-taking.
As such, it has already found use across the financial industry as well as in supply chain management and other data-intensive industries.
Cryptocurrency
Although it does have other uses, cryptocurrency has become synonymous with blockchain.
Bitcoin unleashed the technology on the world and even cryptocurrency’s early critics, of which there were many, praised the potential for the technology it was developed on.
While crypto hasn’t yet become the mainstream currency early innovators hoped, its use has become more widespread.
It is used for overseas remittances, is accepted by thousands of businesses worldwide, and has become especially popular in gaming and online casinos.
Recent Card Player coverage highlights the primary benefits of crypto casinos, including improved privacy, better staking limits, and faster payments.
Online gambling expert Andelija Blagojevic notes that the best crypto casinos offer anonymous play with lightning-fast payouts.
What Is Blockchain Technology?
These benefits are afforded to crypto casino players, and other crypto users, because of blockchain technology. A blockchain network is a digital ledger.
Records are created as parts of blocks that are chained together and distributed across networks of unrelated computers.
Decentralization
The computers do not know which other computers store what other data, or even what other data is being stored.
This decentralized structure is what sets blockchain apart from existing networks and systems.
It provides openness while ensuring privacy and security. Decentralization also eliminates intermediaries and controlling parties, which can help reduce costs and administrative time.
Enhanced Trust
Blockchain records are visible. Anybody can access records using blockchain explorer software.
This not only makes it possible for parties directly involved in a transaction to view the records, but it means that interested third parties can also verify information.
Third parties can analyze the data, too, which can be useful in compliance and independent auditing.
All of this visibility means enhanced trust which can further develop relationships, whether they are business, social, or political in nature.
Privacy
Although records are visible, none of them contain personally identifiable information.
Using cryptocurrency as an example, the payer and payee wallet addresses are published, along with transaction value, time, and other relevant data.
However, user names, locations, and other personal information are not transmitted. Furthermore, some blockchains use methods like ring signatures and fake wallet addresses to obfuscate data even further.
Immutable Records
Once a blockchain record has been created, it cannot be altered or deleted.
The record will exist forever, which further assists in analysis and transparency, although it does also pose some challenges.
Errors cannot be amended. Rather, additional records will need to be created, which does require multi-party participation. The pros are generally seen to outweigh the cons of blockchain’s immutability.
Blockchain Applications
Cryptocurrency is blockchain’s best-known application. More than $10 trillion of Bitcoin is sent every day, although a lot of this is attributable to investors and traders, rather than people paying for goods and services.
There are thousands of other cryptocurrencies, with new ones launching every month, while more and more people expose themselves to crypto in some way, so its use is only going to increase.
Healthcare
Beyond cryptocurrency, blockchain is already used in some healthcare settings and has the potential to change the handling of patient records and data.
Patient records could be stored on blockchain with patients being able to release their own records to other healthcare providers when required.
Records could be updated with test results, prescription drugs taken, and other information.
Supply Chain Management
Supply chain management requires the tracking of products from manufacture to consumer.
Traditional methods tend to be opaque, which opens inventories up to fraudulent activities and errors.
Using blockchain, everything from the source of raw materials to the movement of finished goods can be tracked and easily accessed, eliminating fraud and ensuring a streamlined process for all parties.
Democratic Systems
Blockchain offers everything that is demanded of reliable democratic or voting systems. Users can vote by creating a blockchain record.
The result of the individual vote and the collective result becomes visible, while individual voting choices are obscured.
Smart contracts can be used to count votes, determine winners, and inform process stakeholders throughout the process.
Fraud can be virtually eliminated, and through the use of private keys, it is possible to ensure that only legitimate voters can cast their votes. Some governments are trialling blockchain’s use for registered voting.
Legal Documents
Legal documents like contracts and even court records can be created and stored on blockchain.
Such documents are usually considered sacrosanct, and blockchain’s immutability ensures this remains the case.
A single blockchain network holding such documents would also be beneficial when looking for documents like birth, marriage, and death certificates, which can become very difficult to locate, especially decades after they were created.
Personal Information
Personal digital records can be stored and shared easily via blockchain.
Such information can include details like date of birth and marital status, as well as insurance numbers, employment status, and more.
Individuals can share specific details from their records with authorized third parties and, importantly, revoke access when it is no longer required.
This could provide a much simpler way of providing verified identification and showing driver’s license or passport information.
Smart Contracts
Smart contracts are used in cryptocurrency and are deployed throughout blockchain. For example, a basic example would be in personal ID provision.
A user can establish a smart contract to allow a healthcare provider access to their health records for a set duration, with access being restricted thereafter.
It could also see physical items like buildings being tokenized and then bought and sold via blockchain, streamlining these processes while ensuring transparency and accessibility.
Conclusion
Blockchain is the system that cryptocurrency is built on, but this is only one possible use of the digital ledger technology.
It has already been used across other areas of the financial industry, as well as in healthcare, real estate, and voting and democratic systems.
