What is blockchain, the technology behind cryptocurrencies and what are other uses
Blockchain: What is this technology?
As the name suggests, blockchain is a Chain of blocks containing encrypted information for each transaction on the Internetbasically, acts as a database It maintains a distributed, decentralized, synchronized and secure record of user information on any digital device.
One of the advantages of this technology is that it allows it Any activity that is verifiable, transparent and improbableThat is, it generates a unique and secure code for every action performed on the network.
Blockchain uses beyond cryptocurrencies
Although the term is closely related to the use of cryptocurrencies, there are opportunities beyond the trading of crypto assets.
In accordance chain lightA global blockchain analytics platform, there are at least four uses and applications for this technology: DeFi and smart contracts, digital asset management, supply chain (logistics) and public sector or digital governance.
Smart contract and DeFi system
in the future, Blockchain systems can provide a cheaper, safer and more accessible alternative to the banking sector, or even converge with it as a central bank for digital currencies.,
Currently, developers strive to meet these specifications through greater availability, security, and customizability.
together with DeFi developers works in a similar direction but uses a different approach which is based on creation of smart contracts which eliminates third-party interference Within other financial activities such as lending, derivatives trading and currency.
blockchain in the supply chain
Integrating this technology into supply chains can Improve inventory, delivery and inventory tracking,
According to a survey by the consultancy DeloitteThere are four potential benefits of implementing blockchain in logistics management:
- Improves material supply chain traceability to ensure regulatory compliance.
- Minimizes the damage caused by fake and illegal sales.
- Improve visibility and compliance with outsourced manufacturing.
- Reduce paperwork and administrative costs.
In contrast, the consulting firm suggests Other intangible benefits such as reputation, reliability and transparency in operations large companies, such as heroine You walmart,
Implementation of blockchain solutions in supply chains, however, requires cooperation from all stakeholders, which becomes an opportunity to rethink and reshape business relationships, thus creating a more collaborative ecosystem.
digital asset management
Although still exclusively associated with the art world, NFTs (like all other digital assets) have an inherent connection to blockchain technology.
Every time a crypto asset is bought, traded or sold, it retains a permanent record that proves digital ownership.What sets NFTs apart from other digital assets is the possibility of cryptocurrencies giving monetary value to art or collectibles.
Although, Thanks to the implementation of Blockchain technology, when digital transactions are made, it is possible to track who has what.,
blockchain-4129138_1920.jpg
In this regard, they indicate that from Chainalysis When NFTs move beyond the images they representOwnership of an even wider range of digital assets (3D assets, video game objects, music copyrights and more) Could change the way businesses and creators make money,
In 2021 alone, users sent at least $44.2 billion in cryptocurrency ERC-721 and ERC-1155 contracts, two types of smart contracts Ethereum NFTs linked to markets and collections show a growing enthusiasm for exploring these types of digital assets.
Public sector, Blockchain and Digital Governance
Without a doubt, technology has improved the way people interact with each other in the digital world. In what sense, Blockchain provides a secure platform to validate every cryptocurrency transaction or exchange of information.,
according to experts The World Bank, Governments in many countries have experimented with the use of this technology for various industries and services. Such as property registration, academic accreditation, healthcare, recruitment, food supply chain and identity management.
But despite the potential of blockchain, tests and studies show that there is still a long way to go before significant government change can be achieved.
Surely, trust is a valuable resourceMust be earned over time and diligently maintained. As long as specific companies build and maintain this trust, we’ll see how Anyone can benefit from blockchain technology,
