A blockchain can be considered as a distributed database where the information is stored on each node running the network. Because the database is distributed among the network operators, it ensures that the data stored within it is accurately and securely stored.
As the name implies, blockchains store their data in blocks that are added to the network over time. Each subsequent block is based on information stored in previous blocks, which means that blocks form a timeline of data that can be reliably trusted.
When it comes to cryptocurrencies, blockchain ensures trust and solves what is known as the Byzantine generals’ problem, which describes the difficulties faced by decentralized parties in reaching a consensus. Because Bitcoin uses blockchain technology, it is possible to verify exactly that money is not spent twice, that its supply is limited and that the history of online transactions.
However, the technology goes beyond these use cases, as a number of companies and institutions have already adopted blockchain without cryptocurrencies.
Blockchain technology is usually associated with cryptocurrencies, with the Bitcoin Network being its number one use case. At its core, however, blockchain is a distributed ledger shared on a network of nodes, which means that its use cases go far beyond cryptocurrencies.
Blockchain uses without cryptocurrency
Cryptocurrencies steal most blockchain-related headlines, but adoption has nonetheless grown with technology. One example could be IBM working with the Abu Dhabi National Oil Company to test a blockchain supply system for oil and gas production.
There are several other examples, including the Da Beers Group, which runs valuable diamonds along its supply chain with blockchain, and JPMorgan uses the technology to calculate credit collateral.
Johnny Lyu, CEO of cryptocurrency exchange KuCoin, told the Cointelegraph that blockchain use is “common among government agencies and companies,” noting the Global Shipping Business Network (GSBN), a group that relies on the involvement of major institutions including the Bank of China. DBS Bank and HSBC, for example.
GSBN has been testing the integration of its own blockchain platform to digitize and track container shipments. Lyu also noted that the Indian state of Maharashtra has started issuing verifiable casts on the Polygon network, but the Romanian Financial Supervisory Authority has introduced blockchain technology to “speed up the workflow and reduce the time for manual processing of large amounts of data.
The examples continue, Lyu said, noting that it would “take a long time to list all the latest blockchain initiatives launched in 2022,” adding:
“There is no doubt that we are seeing a huge and widespread adoption of blockchain technology and the number of companies doing so will grow day by day. Blockchain is becoming a necessity, just as websites and social networking accounts once were.
Ben Livshits, CEO of the blockchain platform Zilliqa, told the Cointelegraph about one more use: The UN Food Program has used blockchain technology in its building block project, enabling organizations to “collaborate, trade and share information securely in real time on a neutral network without stigveldis. “
The program, Livshits said, “has already processed over 15 million entries and supported over 1 million people. Several other companies, including Ford, FedEx, Walmart and Maersk, have either managed or used blockchain technology.
The benefits of using blockchain technology are numerous and as a result, investment in space has been significant.
Advantages of blockchain technology
Taking food and beverage companies as an example, Livshits pointed out that blockchains can provide “the necessary transparency that consumers today demand and expect” as “the average consumer today no longer cares about what they eat and how it should cook, “but consider where the ingredients are sourced from and how they are treated.
Recent: Regular Consequences of India’s Encryption Tax
Livshits added that the adoption of blockchain technology could become widespread and “even help with faster payments. He said:
“The benefits are obvious: less human error, better access to information, increased security, traceability and transparency, which can ultimately help to reward all those through the supply chain satisfactorily.
Blockchain technology, like other technologies before it, should “be about creating value and usability for users,” Livshits said.
Sankar Krishnan, CEO and Head of Banking and Capital Markets at Capgemini Financial Services, told Cointelegraph that blockchain technology is “very ESG friendly”, citing increasing environmental, social and governance standards for investors.
Krishnan added that most people do not realize “how many people are in the supply chain business. A large number of participants means that a lot of data needs to be traced, including data related to importers, exporters, the trade itself, the product, shippers, marketplaces, transport companies, insurance companies and other intermediaries.
He added that each of these parties either prints out information or exchanges it via email multiple times and consumes resources. All this consumption, Krishnan said, would be eliminated if blockchain transactions were done.
In addition, Krishnan added, blockchain provides more transparency and improves tracking capabilities for raw materials while making data accessible to all parties involved simultaneously, significantly reducing the risk of fraud. He added:
“What really happens is that the entire manual workflow is replaced by smart contracts and there is an agreement between all parties involved on how these workflows go through the blockchain.
According to the expert: “The industry will benefit from using blockchain and smart contracts,” as very specific use cases have evolved for financial services, healthcare and retail. Krishnan also pointed to loyalty program management, commission payments and government applications as other uses.
Despite all these uses and possibilities, there is a reason why not all companies in the world are diving into the blockchain world and the technology is not taken up by the masses.
Although the use of blockchain technology has continued to grow in recent years, some companies have not yet begun to adopt it despite the many benefits offered. The problem with this type of technology is the investment required to implement it.
This is what Arry Yu, chairman of the Cascadia Blockchain Council of the Washington Technology Industry Association, says. In an interview with the Cointelegraph, Yu said that the implementation of enterprise-class software technology requires “significant investment”, adding that it may also be necessary to change management as some stakeholders may not want to provide transparency.
Yu added that training stakeholders in new processes and preparing the right reports that give each stakeholder significant key performance indicators also increases costs, as does the “enormous amount” of pre-investment “related to process redesign, documentation, training, support and more.
Kieren James-Lubin, president and CEO of blockchain solution provider BlockApps, told Cointelegraph that while this type of technology “ensures that data is not altered or deleted,” it does not guarantee accuracy, as “it depends on the person uploading the information – Manual data entry can be prone to mistakes.
Recent: Will Intellectual Property Prevent NFT Uptake?
The solution to these errors, the CEO added, would be to use precise sensors on objects to “pull data directly”.
The use of Blockchain is increasing regularly and developers are still figuring out exactly what can be done with this type of technology and how far it can go. When Bitcoin (BTC) was first launched, smart contract applications such as those now seen on Ethereum were unheard of.
Technology can still help revolutionize some industries, even if it is more than a decade old. It remains to be seen whether Satoshi Nakamoto’s best invention was Bitcoin or its underlying blockchain.
Mail Bonus – #Blockchain #encryption #Adopted #distributed #technology