Blockchain has become a common buzzword in most first world countries, but many people do not yet exactly understand what it is and what it means for emerging technologies.
Put simply, blockchain is a ledger system for accurately documenting digital transactions. It cuts the costs within certain industries, and also speeds up the transaction that is taking place.
If we look at blockchain through cryptocurrencies, it works by keeping a ledger for each account known as a public address, which is an encrypted number given to name the account. As this account transacts with another one, a new ledger is made on either side with all of the details of the transactions, as well as a timestamp.
This ledger is in the form of a block. When the accounts have a long line of successfully completed blocks, they are recorded up in the form of a chain, which is where blockchain gets its name from.
Blockchain in Banking
Blockchain transactions are publicly transparent meaning that anybody can view the ledger block and public address of transactions being made, which is why the system is so secure. Because of all of these benefits of using blockchain, 80% of banks are expecting to start using it by 2020.
The facts we're stating were gathered in an infographic created by Bitfortune. They also say that blockchain is so secure that banks will not need to monitor and sign off every transaction, meaning that transactions are almost instantaneous. This means that a lot of money will be saved, cutting the transaction fee by 2-3%.
If used within an organization, blockchain has the potential to save up to 70% of the running costs of the company, which is why a third of CEOs are either exploring blockchain or have it within their system already.
Blockchain in the Medical Industry
Many companies and people have recognized that there are numerous potential uses for blockchain that have not yet been explored. For example, within the medical industry. The aim is to give 'one-stop' access to patients and medical professionals to the patients' medical history from all medical providers. This will result in reduced time and increased efficiency in providing quotes.
PokitDot is already using blockchain for all sources of patient data, from EMRs to medical devices and pharmacies. SimplyVital Health already has two health-related blockchain products on the making, Connecting Care and Health Nexus.
Blockchain in Energy Management
Blockchain also has potential in energy management, as seen in the aforementioned infographic. It can reduce the transaction costs and settlement time. In 2017, KEPCO announced that it intends to build electric car charging stations managed with blockchain. SolarCoin and Bankymoon also solved power shortage problems with the bitcoin donation method on the Smart Meter in 2017.
Blockchain in Retail
This technology has huge potential wherever money is being used, especially in the retail industry. For the reasons of being so secure and becoming more widely accepted, Argos and McDonalds are intending of accepting payment in bitcoins by the end of 2018, and Overstock.com has been accepting bitcoin payments since 2014. In retail, the advantages of using blockchain are: keeping better track of your buying habits, transparency of logistics, increased trust, and proof of ownership.
Blockchain in Data Management
Blockchain has also been used rightfully for data management within the shipping industry where Maersk and IBM are creating a company that will apply blockchain technology solely for managing the global shipping supply chain.
In a Nutshell
Since its inception, blockchain has grown a lot, but it is estimated that its current development is comparable to where the internet was 20 years ago, meaning that it's potential is yet unknown. The estimated worth of the blockchain market will be $20B in 2024. This technology clearly has a bright future and its development will be interesting to keep up with.
