Blockchain for dummies. 10 simple ways of blockchain use in business
Blockchain technology development followed the appearance of the first digital currency – Bitcoin. Soon after, the creators found other possible areas of its implementation. What makes blockchain a win-win solution is the absence of the necessity in intermediaries as well as transparency and data safety.
When explaining blockchain principle to dummies, one hits the mark comparing it to a diamond chest: everyone can put there something publicly visible though impossible to be unlocked without a key. Also, only the owner can take away or change something stored in the chest. Moreover, this a chest with thousand cells since each user can store the information here.
From a technical aspect, blockchain literally is a chain of blocks, a distributed data base: a storage that doesn’t depend on the central processing unit. This a list of well-ordered records (blocks) marked and linked to the previous ones.
With blockchain, you can make any deals (agreements, contracts, money transactions) transparent and fair without intermediaries such as banks, notaries or surety services. That is the secret of the technology success. It allows to reduce expenses on intermediaries and enhance users’ confidence.
Why blockchain namely?
Blockchain is a perfect solution for recording of the process such as transactions, user account management and proof of origin.
- Records are used in financial sphere (transactions and payments).
- User account management is applied in user identification services, insurance programs, real estate registry, etc.
- Proof of origin works for documentation storage programs, goods and products tracking services.
Blockchain serves a base for digital currencies, fiat money equivalents that are possible to be exchanged for goods and services. However, they aren’t tangible and controlled by no bank on the globe.
Among them, Bitcoin and Ethereum are the most well-known. The technology is also used for various apps capable of storing big data, analyzing and spreading information. All in all, blockchain proved to be quicker, more user-friendly and cheaper than technologies of the previous generation.
Spheres of application
Currently, blockchain is an indispensable part of our modern life: every day there appear new services that offer original ways of blockchain application.
All Blockcahin for dummies articles present financial sphere as the leading one for the technology, which in fact is true. Cryptocurrencies, payments services, digital currency exchanges and transition systems are the first to work on blockchain. According to enthusiasts, cryptocurrency and decentralized services will substitute fiat money in several years.
Countries are showing their deep interest in blockchain, for good reason. The technology allows to develop effective management systems and reduce expenses on existing mechanisms maintenance.
The necessity of big data storage and processing (confidential information, payments and accrued items, medical data, etc.) makes charges for usual insurance services exorbitant. Blockchain helps to develop accessible insurance products.
Authorship and property right
Blockchain is where you can store author’s credentials and confirm the property rights (real estate, land properties). Also, apps allow to transfer rights of author to publisher or between two land owners, etc.
Energy extraction, its trading, consumption control and management can be easily fulfilled via blockchain. The technology allows to integrate energy control systems within smart house networks and enterprises automation.
For the reason of records safety and marks, identification blockchains are used in systems of data bases control and information analysis in various spheres.
Dealing with unemployment
enables creating a digital labor market and various services for talent acquisition. The identification processed in such systems will protect employers and candidates while smart contracts will assist in employment staying home.
Trade and logistics
Blockchain is a perfect solution for storage of data about manufacturers and all stages of its moving from a seller to a buyer. As for food, the services will track the information about their freshness and quality, which will be given by automatic sensors.
Blockchain is a base for high-level transparent voting services including identified and anonymous ones. The results cannot be cooked up due to the absence of a central data storage.
Gambling and entertainment
Currently, online casinos, lotteries and online gaming services are working on blochchain. The technology integrates with VR (virtual reality) in order to develop new entertaining products.
New technological revolution
To draw a conclusion to the guide for dummies, the only thing should be outlined: blockchain technology is thriving. Not only IT enthusiasts show their interest in it but countries governments also. That is why this phenomenon is related to the appearance of the Internet. Today, you know more about blockchain so the technological revolution will not come as a surprise someday.