Many new crypto enthusiasts refer to “Blockchain” and “Cryptocurrencies” as synonyms. But the innovative technology of Blockchain is far-reaching and is no longer considered a base for decentralized payments. The blockchain technology is the distributed ledger which stores encrypted data on each transaction that was once made within the network. Thus, the scope of application for Blockchain is extremely wide and covers almost any sphere of life.
Salient features of Blockchain Technology
Let’s start with basics. It’s clear that Blockchain technology is the decentralized system that consists of small parts – blocks – which record and store information.
The system is unchangeable and irreversible. But there are many more unique features of Blockchain that might prove useful for various industries:
- Each participant on the chain acts like a server, there’s no central node or person controlling the flow of data within the Blockchain network. Blockchain depends on the community and is regulated by consensus.
- Direct transactions. Decentralization leads to building the global network where participants interact with each other without middlemen.
- Information that circulates within the Blockchain network is protected by cryptographic algorithms. Thus, it becomes nigh impossible to hack Blockchain.
- Transaction history tracking. The blockchain is designed to record each transaction in place. This makes the process of record keeping transparent, so anyone who wants to check the validity of a certain operation can do it quickly and easily.
- Smart contracts. Users are allowed to conclude deals with predetermined conditions which can’t be changed after signing. Blockchain controls the performance of contracts and provides for their automatic execution once the conditions are met.
5 industries disrupted by Blockchain Technology
The thing is that developers can build a decentralized app for nearly every business, from a sushi restaurant to a space travel agency. But where will Blockchain technology be of most use? Let’s explore.
So far as Bitcoin aims to replace national currencies, people consider crypto a kind of digital alternative to fiat money. Regular banking systems are outdated, relatively slow, expensive, and accessible to a limited number of customers.
Blockchain systems allow every person with the Internet connection makes transactions without high intermediary fees. There are two ways to do this:
- Replace banks. Bitcoin’s way. With it, the cryptocurrency system functions on its own without governmental or financial control in a fully decentralized way.
- Collaborate with banks. Ripple’s way. It provides for merging the Blockchain system with banks. This decreases anonymity but facilitates bank transactions.
Blockchain technology affects money transfers and exchanges, credit history tracking, hedge fund management, stocks and bonds trading, social payments, etc. Regardless of the exact method and sphere, Cryptocurrencies can make the financial industry more user-friendly, remove middlemen and borders, and accelerate transactions.
The Internet is multifaceted and includes several sub-industries. Here are the most revolutionary Blockchain application for Internet-based industries:
- Cloud computing. Distribution of data storage and computing power is now controlled by large corporations like Google. Blockchain allows for introducing decentralized cloud services with fairer fees and less vulnerability to hacker attacks. Examples are Golem, Filecoin.
- Social networks. For messaging, another feature of Blockchain becomes crucial. It’s encryption. Cryptographically protected messages ensure digital anonymity and security. There are several Blockchain-powered social networks so far, but the Telegram open network is probably the most noticeable.
The Internet industry is fast-growing, so it’s becoming more attractive for crypto developers.
With its peer-to-peer functionality, Blockchain-powered transport systems will connect drivers and passengers directly without any third-party supervision. Arcade City tries to create a fair ridesharing system, where car owners may build their business with no need for central management. Another example is LaZooz, which allows for sharing the unused vehicle space with people who want to travel.
The number of Blockchain applications for government control is still limited. However, there are two main options:
- Voting systems. Blockchain will be of much help when building transparent platforms where voters and observers can track the election process and be sure of the fairness. There are several solutions already – FollowMyVote and DemocracyEarth.
- Decentralized infrastructure. Blockchain-based websites for public services can be created. Governments and citizens may control each other thanks to full and immediate access to public data.
When it comes to centralized control, Blockchain has fewer chances to be implemented. However, several states and cities are ready to improve government services by introducing decentralized systems. Dubai wants to become the first Blockchain city by 2020; Zug launches the voting system based on Blockchain, and Delaware creates decentralized infrastructure for business.
Modern gambling facilities accept Cryptocurrencies, so users remain anonymous while playing and may receive significant profits thanks to spiking cryptocurrency rates.
However, more important features of Blockchain are better security and transparency. Blockchain casinos don’t require revealing sensitive personal data, so hackers can’t intercept or tamper with the bank details of a player.
All rules, terms, and conditions can be backed by smart contracts to ensure gamblers of casino fairness. In addition, gambling house owners can protect themselves from fraudsters and scammers.
Is Blockchain here to stay?
In conclusion, we want to cite Alistair Milne, CIO of Altana Digital Currency Fund. He claimed that Cryptocurrencies and Blockchain have the bright future despite skeptical opinions of financial whales like Warren Buffet or James Dimon. “You wouldn’t ask the owners of the post office how they felt about email”, – Alistair tweeted.