We are living during a truly revolutionary time of decentralization, cryptocurrencies, and tokenized economies. However, none of this would be possible if it weren’t for the advent of the Blockchain. The most simple definition of a Blockchain is a distributed database, meaning that a network exists in which every participant has access to the entire database. These participants then get to decide what information goes into the Blockchain.
Additionally, it is impossible to alter information stored within a Blockchain once it is actually input. It’s also worth noting that an excessive amount of computing power would be required to take down an entire Blockchain. So excessive, in fact, that it is impossible with current technology. The benefits that can be drawn from utilizing this technology might not be as clear as day in the beginning; however, there are in fact real use cases and real issues that can be solved through the use of a Blockchain database. Let’s get into those.
Currency and Transaction Support
At the moment, sending money to another either domestically or internationally requires the use of a third party, be it your local bank or PayPal account. What’s so bad about that? Well, these intermediaries usually charge hefty fees, and transactions can take an excessive amount of time. Additionally, we must trust these third parties in how they handle our personal data. It’s also worth noting that not all individuals even have access to banking services.
One of the benefits of Blockchain technology is that these databases work seamlessly with cryptocurrencies, which are, simply put, digital cash secured by cryptography. Blockchain technology allows for individuals to send cryptocurrencies between one another as a transfer of value. This is done without needing to rely on third parties.
Supply Chains and Item Histories
Have you ever been to a store and been suspicious about whether or not an item of your choice was actually authentic? Could an expensive bottle of wine actually be a knockoff? This happens often in today’s society. Thankfully, Blockchain technology can help us trace the history of any good or item back to its source in such a way that tampering with it unnoticeably would be impossible.
With the help of Blockchain technology, one could easily find out where a product was made, by whom, and if the quality and condition of said product or item is of an acceptable quality.
Voting
Voting always seems to raise suspicions, especially during heated presidential elections. This was certainly the case with Hillary Clinton vs Donald Trump in 2016, during which foreign intelligence agencies (for the most part, Russia) were blamed for influencing the United States’ presidential election.
If Blockchain technology were to be used for voting purposes, there would be no question as to the results’ authenticity and legitimacy, due to the fact that all entries in a decentralized ledger are immutable and irreversible.
Government Operations
Politics and transparency don’t always go hand in hand when it comes down to it. Government entities have budgets and responsibilities that they need to fulfill in view of their citizens. At the moment, it’s quite difficult to monitor everything that they do expense-wise and make sure that money is being spent ethically.
Basically, Blockchain technology’s use in terms of political operations would allow us to make sure that no transactions or odd deals were taking place “off the books.” The increased transparency provided by a decentralized ledger would also help increase overall integrity.
Read about six more problems and the ways Blockchain deals with them in the full article on MLSDev blog.
