Over the next three decades, technological innovation will be a crucial element driving economic growth. To tackle and thrive in this constantly evolving environment, businesses must first comprehend the driving forces behind technological advancement, then examine the industries they may touch and forecast how they might provide a perfect client experience. Blockchain has risen as one of the most promising developments in the last several years. In this blog, we will take a brief look at what blockchain technology is, why it is gaining popularity, its features, how secure it is, who can use it, and why blockchain is directed to as the most disruptive technology of this era or how it has the potential to revolutionise the world in the coming years.
The essential aspect of the blockchain is that any member can access the data stored in digital blocks. Once data is saved in blocks, it cannot be changed, making the blockchain a dependable and secure database. Because all participants can see any modifications made in the chain, the system’s transparency and visibility are strengthened. As a result, blockchain is safe for storing sensitive transaction data and classified information that a particular group should only have access to.
A Synopsis of Blockchain Technology
Blockchain is a database that stores a record of any information, such as transaction details, a directory of stakeholders, personal information of people working for a specific organisation, or pieces of bank account holders. In addition, a blockchain can be used to store any material that could be regarded confidential but needs to be reviewed by multiple persons. Blockchain is primarily defined as a distributed and decentralised ledger that holds data in the form of blocks. Every block in the ledger is connected to the previous block, so all blocks are inextricably linked to the ones before them.
When a block’s capacity to contain information is exhausted, new information is placed in a new block, chained to the preceding one.
The blockchain’s most essential feature is that any member can access the data stored in the form of digital blocks. Once data is saved in blocks, it cannot be changed, making the blockchain a trustworthy and secure database. Furthermore, because all participants can see any modifications made in the chain, the system’s transparency and visibility improved considerably. As a result, blockchain is highly secure for storing sensitive transaction data and classified information that only a specific group can access.
Insights on the Blockchain Technology Market
Blockchain technology is a game-changer, and its market value is the ultimate measure of its success. Statista shows global spending on blockchain solutions is estimated to reach 6.6 billion dollars by the end of 2021; by 2024, the figure will likely reach 19 billion dollars. According to another survey, the banking industry, with a market share of 30% in 2020, would have the most significant portion of global blockchain market revenue, followed by process manufacturing, with a share of 11.4 percent.
Banking
The banking and finance sector has risen as the major player in the blockchain business, accounting for 30% of net global blockchain market revenue. Many of us are already aware of cryptocurrencies such as bitcoin, dogecoin, Ethereum, and others that have fundamentally disrupted the finance business. Cryptocurrency is actually a kind of digital currency that uses blockchain technology to operate. It is a distributed and decentralised network that spans several computers and functions as a currency that can be used to provide services and purchase things. It differs from traditional currencies in that it does not exist in physical form and is not issued or distributed by any government or third party. Cryptocurrencies are protected by cryptography, considered the most stringent security mechanism.
Cryptocurrencies based on blockchain technology are resistant to manipulation since it is practically impossible to alter the data stored in blocks because they are protected by cryptographic hashing. Furthermore, the blockchain stores information of every transaction executed, which can be viewed by any participant, providing complete transparency. Today, large corporations such as Starbucks, Microsoft, Virgin Galactic, Shopify, Tesla, and many others accept cryptocurrencies such as Bitcoin as payment. Aside from cryptocurrencies, blockchain technology can be used to record transactions employee and customer information and increase transparency and security.
Cybersecurity
The grown reliance on the internet and the digital world has, without question, improved the quality of human lives, but it has its drawbacks as well. It is now quite simple to obtain anyone’s personal information via social media, other online banking apps, and payment gateway apps. These systems have created Pandora’s box for cyber thieves, fraudsters, and unscrupulous individuals. According to the FBI’s Cyber Crime Complaint Center’s annual report for 2020, the centre received 791,790 complaints about various internet crimes with alleged damages of roughly $4.2 billion, an increase from 300,000 complaints received in 2019.
Blockchain technology has developed as a potential solution for defending systems and the public from internet crimes in the cybersecurity industry. Blockchain-based storage solutions are being used by eCommerce, travel booking, social media, and others to record users’ sensitive personal information. As we all know, only parties with the access id for a specific blockchain may access the data stored in it; hence, the likelihood of an outsider obtaining the information is improbable. Furthermore, even if an infiltrator gains access to the system, it would be nearly impossible for him to get every user’s information in certain conditions. As a result, the likelihood of data theft and a threat to the security of millions of users is significantly reduced. In addition, businesses that employ blockchain technologies can more easily regulate who has access to user information.
Logistics and Supply Chain Management
Supply chain management has always been a complex undertaking, and incorrect item handling or even little neglect can result in a loss for the company and its customers. Management becomes more complicated when the supply chain includes valuable metals and perishable goods. Supply chain management is frequently jeopardised due to product mishandling by the logistics department, vendor fraud (i.e., the vendor sends fewer quantities than ordered or deploys decaying goods), theft, etc. Organisations look to effective blockchain solutions to prevent such incidents and limit potential losses.
A blockchain system appears to be the most effective solution to all supply chain issues. Blockchains are used to store supply chain data such as item quantity, price, date of dispatch, the shelf life of the article, certification, dispatch location, destination, number of intermediate stops, and other pertinent information. This blockchain should be made available to workers directly involved in the supply chain to promote clarity and hold every one on the same page. RFID tags are often placed on every item in the supply chain and store all of the object’s details, such as the date of manufacture, expiry date, batch number, etc.
These tags feature unique identifiers that can be saved on the blockchain and tracked to improve supply chain traceability and ensure that every item arrives at its destination on time and in good condition. As we all know, data saved in a blockchain cannot be altered; hence, all critical supply chain data is safe and cannot be tampered with, drastically lowering the likelihood of counterfeit and fraud.
Non-Profit Organisations
Most potential donors constantly scrutinise non-profit organisations due to a lack of transparency and control over who receives financial assistance from the organisation and how. Lack of trust in NGOs’ administration and operating techniques due to recent fraud and money laundering instances has encouraged organisations to embrace blockchain technology to establish trust among the public by giving more transparency. NGOs can utilise blockchain solutions to store a variety of data, ranging from donor information and the amount provided to the details of the beneficiary who received assistance from the organisation. This blockchain solution is available to all non-profit members, including contributors and beneficiaries. NGOs can check and guarantee that the amount stated by the donor for donation equals the amount received; donors can also check what amount has been awarded and to whom it has been granted. As a result, the operation of an NGO becomes more transparent and hence trustworthy.
To sum up
Along with AI, IoT, AR, and VR, blockchain is a technology that has fundamentally revolutionised the twenty-first century. Founded in 2008 as a structure for Bitcoin, blockchain technology found its usage outside of currency in 2014 as a mechanism to securely store documents and build improved transparency. Almost every major business now uses blockchain technology to construct systems that improve security and transparency. This blog reviewed some of the major industries in which blockchain technology has benefited and been altered. The cases of blockchain technology adoption are not restricted to the ones stated above; as the technology’s popularity grows, more and more businesses are moving toward implementing blockchain solutions.