What can we learn from Blockchain's decentralized methodology?

Blockchain is a fast-moving phenomenon. Due to its decentralized methodology, many leaders in the finance and technology industries are taking blockchain seriously.

A blockchain consists of a distributed database of all transactions on a network. Each constituent of this database represents a “block”. As the state of a transaction changes, a block gets appended to the blockchain with a reference to the previous block in a linear and chronological order. The new block is then replicated across the network so that each node has the same blockchain. Every participant of this transaction has a copy of the blockchain. Thus, any participant can validate a given transaction. This methodology has removed the need for having a centralized, trusted third-party transaction validation. Blockchain technology has a broad applicability range and has great transformative potential. Thus, business leaders must use this technology to explore the range of possibilities available to their business and their sector.

Business use cases of blockchain technology

1.   Cyber Security

Using blockchain’s ledger methodology and cryptographic techniques, data can be sent across a network securely. A blockchain technique will ensure that the data is from the correct sources and that nothing is intercepted in the interim. If this technology is more widely implemented, the probability of hacking can go down. Blockchain is more robust than the legacy systems in your organization. Thus, blockchain technology minimizes cyber security risk by simply removing the need for human intervention.

2.   Voting

During elections, authentication of a voter’s identity is crucial. It also requires a secure mechanism for keeping track of votes and trusted tallies to determine the winner. Here, blockchains can act as the medium for casting, tracking and counting votes. Voters can cast votes as transactions within the blockchain. Using this methodology, there will be no voter’s fraud or foul play as blockchain audit trail can verify that no votes were changed or removed, and no illegitimate votes were added.

3.   Networking and IoT

Blockchain technology can act as the backbone of a decentralized network of IoT devices. Blockchain can serve as a public ledger for a massive amount of devices, which would no longer need a central hub to mediate communication between them. Without a central control system to identify one another, the devices can communicate with each other automatically and can manage bugs, software updates, etc.

4.   Real estate

In several cases of real estate procurement, there is a lack of transparency during and after transactions. Additionally, there are copious amounts of paperwork, and possibilities of fraud. Blockchain offers an effective way to reduce the need for paper-based record keeping, to speed up transactions by tracking the records of transfer land titles, property deeds, liens etc. and to ensure that the documents are accurate and verifiable.

5.   Healthcare

Several healthcare institutions are not able to securely share data across platforms. Blockchains facilitate better data collaboration between providers which means a higher probability of accurate diagnoses. Also, it increases the ability of healthcare systems to provide patients with cost-effective care and facilities. Blockchains allow concerned healthcare providers and hospitals to share access to their networks without compromising on data security and integrity.

6.   Supply Chain Management

With blockchain technology, monitoring transactions have become more secure and transparent. Supply chains are basically a series of transaction nodes that link to move products from one point to other. By utilizing this technology to document transactions in a supply chain, companies can reduce time delays, costs, and human errors.

Blockchain’s verifiable and networked data structure is suitable for application across many other industries. Companies undertaking digital initiatives to gain a competitive advantage should not overlook blockchain. According to us, we will begin to see significant commercial applications of blockchain technology taking hold within a year, and several industries will feel its impact.