Trends in Tech: Blockchain

“Blockchain provides supply chains capabilities that were not possible in the recent past” - Dave Waters?

What is blockchain?

Blockchain is a type of shared database distinct from a typical database in how it stores information. Blockchains store data in blocks linked together through cryptography, and this data can be easily accessible from any device spread out across the network called nodes.

A simple analogy for understanding blockchain technology is a Google Doc. When a document is shared among people, those people are granted access to the same file instead of multiple copies. This constructs a decentralized distribution chain that grants everyone access to the document simultaneously. Thus, all parties can alter the record in real-time, making changes completely transparent.

Figure 1 - How blockchain works (visual roadmap)

Why is blockchain important?

Blockchains are an optimal and reliable way of storing data. Today, there are more than 10,000 cryptocurrency systems using blockchains. Blockchain remains a highly effective record-keeping system protected from hacking and data tampering despite its complexity.?

Interestingly, blockchain has other advantages and some drawbacks that are described below.?

Advantages:

• Improved accuracy by removing human elements in the verification process
• Cost reductions by terminating third-party verification
• Transactions are secure, private, and optimize
• Transparent amongst all parties?
• Delivers a banking alternative and a way to safeguard personal information, especially for citizens of countries with unstable and undeveloped governments.?

Drawbacks:

• Significant technology cost?
• Potential to use for illicit activities
• Data storage limitations?
• Regulations?
• Environmental impact?

Who benefits from using blockchains?

Healthcare?

Healthcare providers can use blockchain technology to store their patients’ medical records securely. For example, when a medical record is generated and signed, the information can be digitally transferred into the blockchain, supporting the patients with proof and trust because those records cannot be easily altered. These medical records could also be encoded with a private key. This means they are only accessible by specific individuals, guaranteeing the patient’s right to privacy.

Supply chain?

Supply chains deal with massive amounts of information, especially with goods that travel from one part of the world. It can be hard to oversee everything with traditional data storage approaches, like which vendor provides poor-quality goods. In these circumstances, by transferring information on the blockchain, record-keeping would be easier.

Banking

No industry benefits more from implementing blockchain than banking. Typically, financial institutions operate during business hours, usually five days a week. If someone tries to deposit cash on Friday at 5 pm, they will likely have to wait until Monday before the money appears in their bank account. In addition to this, if they try to deposit a large amount of money during working hours, the transaction may still take up to 3 days to process. This is due to the sheer volume of transactions that banks need to verify. In other words, blockchain never sleeps.?

By integrating blockchains into banks, consumers can see their transactions processed in at least 10 minutes, regardless of holidays or any time of day or week. Moreover, banks have the agency to exchange funds between branches more quickly and securely with blockchains. For instance, in the stock exchange, the settlement of the stock can take up to two days after a trade is made (sometimes longer if trading internationally). This means that the money and shares are inaccessible for that period. This is inconvenient and can also impose costs and risks to canonical transactions and banks.?

The future of blockchain

NFT

For the ever-changing digital world, one of the most relevant uses for blockchain is cryptocurrencies, and it is here to remain that way for some time. Nevertheless, an even more exciting future is here, with the emergence of blockchain technology: non-fungible tokens (NFTs).

NFTs are an innovative and revolutionary way of buying and selling digital assets that represent objects like music, in-game items, and video. They are generally unique and contain built-in authentication, which serves as proof of ownership and can’t be replaced or swapped as they can only be traded, sold, purchased, or given away by the original creator of that asset (hence non-fungible).?

The technology brings out a new wave of digital collectibles, from rare artwork to one-of-a-kind sneakers and accessories. Its unique authentication prevents individuals with malicious intentions from copying, faking, or screenshotting the NFTs and reselling it to others, making them attractive to collectors. According to a 2021 news article, NFTs estimated $400 million in gross sales for the top ten collectible items. Moreover, NFTs afford artists and content creators unique opportunities to sell their crafts. Notably, artists no longer need to rely on galleries or auction houses to sell their arts but can monetize them directly as an NFT, which allows them to keep more profits. This demonstrates that the possibilities for NFTs are endless, and the tokens will likely have significant impacts on the future of digital ownerships.?

Figure 2 - Top NFT collectible sales (February - March, 2021)

Figure 3 - Search interest in “NFT” skyrocketed (December 2020 - March 2021)

Digital identity

Today, users protect their private information with passwords and authentication questions to prove their own identities. However, these methods are ineffective as personally identifiable information is the most targeted data as it comprises nearly 97% of data breaches in 2018. In addition, other digital identity issues such as inaccessibility, data security, and fraudulent identities made it harder for users to claim their identities. For example, 1.1 billion people worldwide don’t have a way to claim ownership over their identity. Blockchain could replace this system with a digital identity that is safe, secure, and easy to manage.

With blockchain, users’ digital identity is secured through a randomized set of numbers that is unique to them. This means that a user's identity can’t be hacked or accessed without their consent, making it more reliable than conventional methods.?

Final Thoughts?

As it can be seen, there are many prospects for blockchain technology, and it’s constantly expanding. Also, the future is looking bright, considering that blockchain technology is showing promise in nearly all industries, and it seems like its true potential is yet to come.?

The implementation of blockchain in business offers new methods and insights into how the sector can operate. Moreover, this technology contributes a role in extending and expanding traditional services offered when trading. Nonetheless, expanding and integrating new technology can be arduous for small to medium-size enterprises. Therefore, it remains unequivocal that having a dedicated application for your business can help keep it ahead in the fast-changing market. Here at Rofi Labs, our team of blockchain specialists has years of experience creating applications and providing tech solutions that have helped businesses stay on top of the competition. Contact us and get your FREE consultation today!

Author

Benley Nguyen, Copywriter @RofiLabs?