A common misbelief states that blockchain use cases in real world are limited to cryptocurrencies. Fortunately, it is far from the truth since blockchain-based solutions are applied in many industries. Such apps provide numerous advantages over traditional applications – they are much more secure, work faster, and help reduce expenditures. How is this level of efficiency achieved? Let’s find out!
Technological Background of Blockchain
To understand what a blockchain is, imagine a file that stores certain data. This file comprises multiple records, also known as blocks, with each of them keeping some information. All blocks are interconnected using cryptography – every added record contains a timestamp and a one-way function called a cryptographic hash. Blocks that contain related information link into a chain (hence the name of the technology). Blockchain stands out from other ways of storing data due to its decentralized nature. No single entity or person can manage, change, or delete information from the chain without reaching an agreement with all users who have ever accessed their respective data. That’s why Bitcoin is so popular – a transaction processed using this cryptocurrency can’t be blocked by a bank or a government.
Blockchain in Business
Blockchain-based solutions offer multiple advantages for businesses of any scale:
- Secure transaction processing. Blockchain applications allow users to keep records of all transactions between parties, which is essential for international trade, where multiple entities are involved.
- Enhancing digital relationships with smart contracts. Smart contracts are a great tool for controlling valuable assets and automating transactions.
- Reduced expenditures on intermediary services. Blockchain applications can eliminate the need for intermediaries by connecting businesses with end consumers.
- Storing information on past actions. Deleting information from a block is impossible, which makes blockchain a perfect solution for managing a history of changes to a document.
Implementation of Blockchain Solutions in the Financial Industry
The financial industry is among the pioneers of blockchain implementation. Cryptocurrencies were the first massively applied products that used distributed ledger technology; so, it is not surprising that the financial sector adopted other blockchain-based solutions as well. The latter are used to make international payments simple and convenient while reducing expenditures on banking services. In addition, using cryptocurrencies allows organizations to enhance security. Intervening into a cryptocurrency transaction is impossible, while banks are vulnerable to hacker attacks. Decentralization helps businesses protect the personal information of their customers by storing data in multiple locations.
How Governments Use Blockchain?
COVID-19 pandemic has indicated the need for updating public services, including the operation of federal mail service, non-business entities, and even presidential elections. Blockchain can be applied to guarantee more efficient functioning of all public services, from USPS to transportation in particular cities. For instance, the technology in question can be applied for package verification, which would help reduce mistakes and deliver needed goods to the right people.
Building Your Blockchain Application with Innovecs
Building a blockchain-based solution requires careful consideration of all business needs along with a team of professionals capable of delivering the required result. Fortunately, engineers from Innovecs know how to build innovative solutions from scratch and fit them to your particular preferences. Make sure to contact Innovecs if you need a groundbreaking blockchain app at a reasonable price.