5 popular areas of practical application of bitcoin technology
Some associate blockchain only with bitcoin. In fact, the "chain of blocks" (blockchain) is used to solve completely different problems. And it works much better than standard algorithms.
The number of areas where blockchain technology is used is limited only by the imagination of software developers. Moreover, they are not always associated with cryptocurrency.
Sphere 1 – Information technology
Blockchain was “born” thanks to information technology, the development of computers and the global network. Therefore, if you look for where blockchain technology is used, then you need to start with IT.
The main direction in which blockchain can be in demand is to ensure the safety of data. In the modern world, they are the main value.
Local storage of information on a computer is fraught with loss due to a breakdown or theft of the drive. The “cloud” option is not suitable due to the risks of hacking the server, destroying the data center. In addition, in the “cloud” for user identification in the classic version, one database with logins and passwords is used. Therefore, leakage and change of information is possible at different stages due to the human factor. Therefore, the entire system will be weakly protected.
Blockchain functions automatically. Block chains are verified using built-in algorithms. Information is stored by each network member. Therefore, hacking or destroying one node (node) will not affect the operation of the entire system in any way. Authentication occurs constantly by checking the hashes of the “neighbors”. Even if one element is “fake”, it will not pass verification and will be replaced with a genuine one.
The use of the “chain” allows you to prevent interference in the operation of information networks, rather than deal with the consequences. Moreover, functioning solutions already exist on the market.
Sphere 2 – Sale of goods and services
International trade is an area of application where blockchain has almost unlimited benefits. It is considered one of the trends that will determine the development of retail over the next 10 years.
Large retailers have already paid attention to the possibilities of technology. For example, Walmart, a popular megastore chain in the United States, is implementing blockchain to organize the purchase of goods outside the country. For this, a special program was developed. It allows you to track the supply chain from the manufacturer of products to the supermarket. As metadata, the blocks will store information about storage periods, transportation conditions, and the manufacturer.
Information industry giant IBM is paying close attention to blockchain. The company’s programmers are implementing a project aimed at controlling the quality of food products and improving its safety. Retailers have already become interested in it, as well as food manufacturers from around the world.
Sphere 3 – Getting an education
Blockchain provides guaranteed data safety. Transaction records are stored on all nodes, and they cannot be deleted or overwritten. You can only add a block that contains replacement information. With the help of the blockchain, you can keep records of education and the awarding of academic degrees. As a result, any participant in the system will be able to verify the authenticity of the document, its author and the user who made the changes.
So far, blockchain is rarely used in educational institutions. But there are already examples. One of the higher education institutions in Cyprus uses this technology to store issued diplomas. The same institute accepts tuition payments in cryptocurrency. Now similar systems are being launched at MTI and the Open University in the UK.
Area 4 – Legislation and legal practice
Due to the inability to change or erase data, distributed networks can be used as a way to store legally relevant information. For example, contracts for the sale of real estate or works of art. It is also possible to fix the fact of transfer of the right to dispose of intellectual property objects.
A striking example of this use is the sale of digital paintings using the NFT token.
Already, databases with information about the owners of real estate and land plots have been digitized. But, for example, in Sweden, government agencies have gone further. In this country, a blockchain is being introduced, in which transactions on the transfer of property will be recorded. It has access to state regulatory bodies that determine the fact of transactions. This is how individuals or companies are identified whose income does not correspond to the amount of taxes paid.
Sphere 5 – Medicine
Blockchain in healthcare facilities is an opportunity to make data processing simpler, faster and more understandable. But the main obstacle is the low speed of data processing. When adding new blocks, information about them is verified by all nodes. Therefore, the procedure takes a long time.
The way out of the situation can be new blockchain algorithms with fast transactions. For example, Healthureum (HHEM). Its peculiarity is that the data is stored separately from the “chain” blocks. They contain only links to records. Consequently, the blockchain itself will be small and data synchronization will be faster.
It is too early to wait for working solutions in the medical field. A limiting factor is the legislative regulation of the collection and use of personal data of patients. Therefore, it is first necessary to adopt and put into effect regulatory legal acts. And then you can use distributed networks in medicine.
What is the result
The list of 5 areas where blockchain is used or will be used is far from complete. In addition to the applications listed above, this technology is in demand in the entertainment industry. For example, when making payments on online casino sites. Or to confirm the authenticity of video clips, music recordings, photos.
“Block chains” can be used in everyday life. For example, to issue consumer and microcredits, to sell cars without intermediaries in the form of government agencies. Take a look around, you may already be using the power of blockchain. Even if you don’t suspect it yourself