5 Unexpected Ways to Use Blockchain Technology
An average person on hearing about blockchain technology will certainly relate it with bitcoin, which makes a dual effect on perception. On the one hand, the popularity of bitcoin also raises interest to the blockchain, on the other hand, bitcoin is often associated only with something negative, forbidden and even persecuted by legislative regulation.
For those who have not previously been familiar with the term blockchain, as well as for those who have associated it exclusively with digital currency, it will be cognitive to find out what it actually means.
Basically, blockchain is a tool, similar to the database. A tool can not in itself be known to be good or bad. Blockchain is a data structure accepting a digital ledger of every online transaction. The idea of blockchain technology is as simple as it could be – it's a huge public database that operates without centralized management. In the context of bitcoin, the transactions are verified by the so-called miners – participants of the system, who confirm the authenticity of the committed actions and then form blocks from transaction entries. Miners operate a distributed database consisting of a "chain of blocks". That is exactly why blockchain allows monitoring the transaction’s validity without control of any financial regulatory authority.
Except for digital currencies, there are other ways to use blockchain technology in the future. How can it facilitate the transactions of the future? Here are five awesome things how the technology may soon change our lives.
Blockchain Smart Contracts
An ability to do transactions anonymously – it is a key feature of the blockchain technology. The parties sign the smart contracts using the same methods as signing the sending of funds in the existing cryptocurrency networks. The smart contract tracks under the specified conditions the achievements or violations of the points and makes independent decisions based on the programmed conditions. Thus, the main principle of a smart contract is the complete automation and reliability of the performance of contractual relations between people. To get rid off the paperwork means a lot for business. Being based on cryptography smart contracts can provide a better security than traditional contracts based on law, and reduce other transaction costs associated with contract execution and possible legal costs. Some experts share an opinion that in the long term the majority of business processes can be conducted on the basis of smart contracts, which will make a profound transformation of the business automation approach.
Blockchain For Cloud
Most of us use the cloud as a digital storage. Still, it would be really great to see the blockchain usage for a private network. This kind of integration is not far off, which will clearly change the confidence level to cloud storage and frequency of using it. Just imagine, critical information is in a secure environment anytime and anywhere. It will help to bring the tamper-proof data and variability to transactions. The cloud would be more resistant to external attacks due to the dispersed transaction ledger. Still, blockchain technology is no good for storing large amounts of data. The IPFS (InterPlanetary File System) can make a beneficial relationship with it by providing blockchain applications with a public data base. Meanwhile such advantages of blockchain as immutability and transparency can timestamp content and make it publicly verifiable. Seems like perfect match.
Voting Using Blockchain
Such controversial subject as online voting might solve many issues. Conducting local or Presidential elections through online voting with blockchain technology can be a more safe way. The technology may prevent hacks – the main buzz the online voting system causes.
Preventing Internet Scam
Online transaction fraud problem may be solved with blockchain technology as the transparency of blockchain currently allows spending the currency token only once. Banks already started regard blockchain technology as an effective way to block any kind of online fraud. Protect financial sector from an ability to steal personal financial data would turn things around.
The One and Only Uncompromised Data Storage
A variety of popular services for storing data have been compromised due to unreliability. Blockchained data is extremely reliable. Since blockchain is a distributed DB, there is no single place where all the data is stored. The information is located simultaneously for all participants of the system and all records are automatically updated to the latest version during each alteration or addition is made. Data can not be deleted from blockchain, which makes the system foremost transparent. The system stores digital fingerprints of user certificates and digital proof of ownership, records time and every micro transaction, completely eliminates the possibility of a widespread hacker attack "man in the middle" and excludes need in third party integration (escrow). Thus, the use of blockchain technology to store information is the most open and reliable.