A phrase without a doubt called a buzz nowadays is blockchain technology. As one might compare it with the advent of the Internet in the late 90s, its impact has been profound.
During the 20th century, an information revolution paved the way for e-commerce, which then quickly morphed into social connectivity. The Blockchain revolution has now been summed up by replacing “information revolution” with “cryptocurrency revolution.”
In various sectors of the economy – banking, blogging, automotive, IT, legal, even manufacturing – Blockchain appears to offer a solution that is all-encompassing.
This is about the financial sector, mind you. As a result of cybercrime, this sector faces high skepticism. As a result, if a technology brings about a significant and progressive change in its working, it holds immense potential and value.
The government and the average person, as well as large and small businesses, benefit from value in this case.
Blockchain Technology Explained
Your transaction details have always been stored in a database overseen by someone at some point. The security of your assets depends solely on the safety of this database.
It has taken experts most of the 21st century to find a secure way to conduct transactions in order to address this uncertainty. This results in Blockchain being the best of all.
Blockchain technology functions as a distributed ledger. Blockchain refers to a distributed network of blocks that store transaction details. The entire chain is affected by any change to any block.
What does this mean?
To break into the network, a hacker would need to modify every block. Due to the chain of blocks being stretched, it isn’t easy to do that.
We can use Bitcoin and Ethereum as examples. A blockchain-based cryptocurrency operates on this principle. Due to their widespread use, their Blockchain is constantly updated. An increasing number of blocks makes tampering with the network more difficult.
How did blockchain technology become so hyped?
Be trusted. It would be best to consider the trust factor when discussing the importance of Blockchain.
Because homomorphic encryption is so robust, even someone without prior knowledge can operate it safely. Moreover, the multiple encryption and validation process provides a perfect substitute for traditional auditing and accounting practices.
In addition, there’s no chance for third parties to interfere. Due to this, blockchain technology makes sense as a financial intervention for the disadvantaged, especially those from low-income backgrounds.
The capability of blockchain technology to develop an international trust network is highlighted by Ma et al. (2020).
Blockchain is the beginning of human beings developing a network of value transmission, which will lead from individual trust to institutional trust to machine trust.” —Ma, et al. (2020).
This technology has unquestionably generated a lot of hype. The following benefits of blockchain technology for the average person should not be overlooked even after the hype dies down.
Benefits of Blockchain Technology for Individuals
International Money Transfer Made Easy
The process of international money transfers requires meticulous attention. Bank commission rates and company commission rates further exacerbate the situation. A blockchain intervention can, however, avoid these problems.
A recent article in The Conversation magazine presented a striking contrast between traditional practices and blockchain transactions. Almost 20% of the commission cost of sending money back to Ghana was incurred by a US worker.
When Bitspark (now closed) charged amounts exceeding $150, it charged only 1%. Today, most international transactions are based on this principle. Because of this, big players have reduced commission rates. Of course they must!
How is the society most influenced?
International transfers benefit everyone, but people from less affluent backgrounds benefit most from them. It is a great relief to them that their already limited income is not facing further cuts.
Identity Realization — CRITICAL
What’s more important than identifying someone? It’s impossible to pick one thing. A passport, an identity card specific to your country, or even a birth certificate could be used to prove your identity.
In the event that none of those are available to you? Isn’t that a fix? Let’s take a moment to think about those without smartphones or computers. It is difficult to comprehend the complexity of the world.
Over one billion people around the world have no access to any form of identification. In underdeveloped nations, about half of women lack an identity, which is even more worrying.
If you didn’t have any proof that you existed, it would be terrifying.
As a result of Blockchain, decentralized identities can also be created. By providing an opportunity for poor people to create identities even without official proof, it provides an opportunity for them to come forward.
The fact that this is available to those who are committing fraud is like icing on the cake and much more. The reason?
You become the manager of a Decentralized Public Key Infrastructure (DPKI) that secures and stores your identity.
It’s impossible to ignore the automotive boom!
According to an IBM study from 2018, Auto Pioneers are taking a keen interest in blockchain technology. According to the study, the automotive industry will be governed by Blockchain by 2021.
How OEMs and suppliers invest in blockchain will be greatly influenced by the potential for creating new business models.
-International Business Machines Institute (2018)
Why such inclination?
In addition to manufacturing processes, finance management, and vehicle data security, there are many reasons for this. The facility to buy and sell across the globe seamlessly appeals to both companies and customers.
Blockchain technology has been adopted by companies like Carnomaly for the benefit of their customers. A blockchain-based registry and cryptocurrencies can be used to facilitate vehicle verification, as well as payment with cryptocurrencies.
Payments can be made via cryptocurrency such as Bitcoin, Ethereum, and LTC with Carnomaly. Anywhere in the world, the customer can get the vehicle shipped directly to the dealer after confirming the payment. Easily, quickly, securely, and reliably.
Bringing your attention to the food industry
There was no such thing as an unverifiable thing in COVID-19. Different food products can be imported in this manner. In order to ensure food safety, companies must adhere to a sophisticated food monitoring procedure, which keeps them from taking all measures possible.
It is important to comply with various safety standards, yet food safety remains a concern in developing nations and underdeveloped nations. As a result, food manufacturing, processing, and transportation become integral to individuals’ lives.
Blockchain can help to alleviate all these concerns. In the case of IBM Food Trust, Blockchain stands up to the challenges of supply chain management and monitoring. As a result, the company has established blockchain registries to ensure end-to-end visibility.
Registries like these provide valuable information about the freshness of food. Due to the open nature of the Blockchain, information is always available. As a result of IBM’s Insights capabilities module, transparency is maintained.
Tracing speeds are increased as well as coverage from tip to toe. This ensures that consumers always receive healthy products. Just a few years ago, such a revolution in the food industry seemed unlikely. As a result of blockchain technology, however, a positive shift has occurred, which is being leveraged for good.
Blockchain technology has many sides. When it is used to eliminate third-party intervention, it can also facilitate swift and secure cryptocurrencies transactions. Its success is largely due to that fact.
Despite most of the attention being given to blockchain in the business world, end-users are the ones who stand to gain most from the technology. Due to the evolution of technology, the common man was able to protect his transactions and identity from becoming a target of fraud.
Blockchain is also gaining traction because governments are using it for a variety of financial transactions. Blockchain not only keeps the resources in place, but also optimizes their existence – and the decentralized nature prevents corruption.
Accordingly, Blockchain is for the benefit of the general public. As a result of its dynamic nature, it is well suited to meet the needs of the modern world. Hackers won’t be able to exploit this until all governments realize this.