HOW BLOCKCHAIN TECHNOLOGY IS CHANGING OUR LIVES AND SOCIETY
In the vast landscape of technology, there exists a term that might seem complex at first glance but holds the promise of transforming the way we live, work, and interact. It ushers a world where trust is automated, where information is stored in a digital ledger, where transactions are secure, and the integrity of data is absolutely guaranteed. Blockchain, often hailed as a revolutionary force, is not merely a buzzword for tech enthusiasts in suits but also a powerful force making the digital universe more transparent, secure, and accessible for everyone.
In this article, we’ll explain blockchain in a simple way, making it easy to understand. We’ll break down the complicated parts and show how it is really makes a big difference in many parts of our lives. From its role in empowering individuals to achieving financial freedom through cryptocurrencies, to enhancing the transparency of business operations, to ensuring fairness in the political system, and finally, to paving the way for the next iteration of the Internet with Web 3.0, blockchain emerges as a technology that transcends boundaries and offers diverse important use cases that anyone can leverage to benefit society as a whole.
HOW BLOCKCHAIN AND CRYPTOCURRENCIES ARE CHANGING OUR PERSONAL AND INSTITUTIONAL FINANCE
Blockchain and cryptocurrency have been reshaping how individuals interact with finance, offering unprecedented opportunities for financial freedom. According to a survey conducted by NORC, “More than one in ten Americans invest in cryptocurrency”¹. This underscores the growing interest and participation in the crypto space, reflecting the desire of individuals for alternative financial avenues.
Bitcoin, the pioneer in the cryptocurrency space, has gained recognition as a decentralized currency that transcends traditional banking systems. A research published by Grayscale in October 2023 shows that there is a rising demand for Bitcoin as the digital gold for individuals to safeguard their wealth in the face of economic uncertainties:
“Many investors turn to gold to hedge their asset from potentially damaging tail risks, including monetary debasement and military conflict. Traditional assets are struggling against a backdrop of heavy government bond issuance and active conflicts in the Middle East and Eastern Europe, and safe haven assets like gold and the Swiss Franc are benefiting as a result. In our view, Bitcoin is an alternative to physical gold that is being embraced for similar reasons by a digitally native generation²”
The empowerment of individuals through blockchain-enabled cryptocurrencies is further emphasized by the accessibility they offer. As of October 2023, Triple A’s Cryptocurrency Ownership Data “Estimated global crypto ownership rates at an average of 4.2%, with over 420 million crypto users worldwide.³” This widespread adoption indicates that cryptocurrencies are not confined to a niche group but are accessible to a broad spectrum of individuals seeking financial alternatives.
Moreover, the speed and efficiency of blockchain transactions challenge the deficiencies of traditional financial interactions. Traditional banking processes often involve delays, especially in cross-border transactions. In contrast, blockchain transactions, as highlighted by Ripple’s Global Payment Network Trends report, are completed almost instantly, providing a swift and efficient alternative. This speed not only enhances convenience but also opens up new possibilities for real-time financial activities.
Smart contracts, a feature of blockchain technology, play a crucial role in automating financial processes. According to a report by Grandview Research,
“The global smart contracts market size was valued at USD 684.3 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 82.2% from 2023 to 2030.⁴”
This growth indicates the increasing adoption of smart contracts in various financial dealings, reducing the need for intermediaries and streamlining processes.
The impact of blockchain and cryptocurrency on financial freedom is eloquently summarized by Andreas M. Antonopoulos, a renowned blockchain expert and author,
“There are almost 200 currencies of the world, but there’s only one international currency. There are almost 200 currencies controlled by central banks and governments, but there is only one mathematical currency today, and that is bitcoin. We are going to build more of them.⁵”
HOW THE BLOCKCHAIN TECHNOLOGY IS CHANGING AND AFFECTING THE WAY WE DO BUSINESS IN SOCIETY
Blockchain technology has also been a cutting-edge technology, changing and transforming various sectors of businesses by offering enhanced transparency, security, and efficiency. Here are ten ways blockchain has been impacting businesses:
- MANUFACTURING, AGRICULTURE AND SUPPLY CHAIN MANAGEMENT: These sectors benefit from blockchain through increased transparency and traceability. In manufacturing, blockchain enhances the supply chain by recording the production history and quality assurance of each product. As soon as a product is made, its details are permanently recorded into the blockchain’s ledger. This ensures the authenticity and reliability of the final product, creating a digital quality control system that spans the entire manufacturing process.
Similarly, Argo-businesses can harness the benefits of blockchain by tracing the origin and journey of food products from farm to table. This ensures food safety, reduces fraud in labeling, and empowers consumers to make informed healthy choices about the products they buy. IBM Food Trust⁶, a blockchain-based platform, has partnered with major food retailers to enhance traceability.
Each step in the supply chain can be securely stored and later validated, minimizing the risk of counterfeit products and ensuring real-time monitoring of the movement of goods. It’s like having an unforgeable passport for each product, bolstering its authenticity and reliability. According to the Verified Market Research (2022) report,
“The Blockchain technology adopted in the Supply Chain Financial Market size was estimated at $245.41 million in the year of 2020 and estimated to reach $6,853 million in the year 2028, which means that the growing rate is about 51.62% from 2021 to 2028.⁷”
2. HEALTHCARE DATA MANAGEMENT: The healthcare industry benefits from blockchain’s secure and decentralized nature in managing patient data. Blockchain ensures the integrity and privacy of medical records, granting patients greater control over who can access their health information. This not only enhances security but also facilitates seamless and authorized sharing of medical records among healthcare providers, creating a digital vault for health data. The National Library of Medicine⁸ has a detailed report on the applications of blockchain for healthcare data management.
3. REAL ESTATE: Blockchain streamlines property transactions, providing a secure and unalterable record of ownership. It reduces the risk of fraud, ensures transparent and efficient transfers of assets, and enhances the overall integrity of the real estate industry, by serving as a secure digital ledger for property ownership, thereby simplifying and securing the entire process.
Some real estate companies already utilizing the blockchain technology include: SoluLab, SafeWire, Vairt, RealIT, Propery club and Manage Go.
4. EDUCATION: This is another sector that can leverage blockchain for secure and easily verifiable storage of academic credentials. Blockchain ensures the authenticity of degrees and certifications, making the verification process for employers as well as safeguarding the integrity of educational achievements, easy and hassle-free. It’s like having a digital transcript that is tamper-proof and accessible. MIT, a pioneer in technology, has implemented blockchain for secure and tamper-proof storage of academic credentials.
5. INSURANCE: This industry benefits from blockchain’s transparency in claims processing. Smart contracts automate and expedite the claims process, ensuring fairness and efficiency. It functions like an automated claims assistant that streamlines insurance procedures, reducing delays and providing a more responsive service. Accenture research indicates that,
“ 33 percent of insurers are planning to use blockchain in the next two years and another 36 percent have it on their agendas for consideration.⁹”
6. RETAIL AND E-COMMERCE: Blockchain enhances transparency by ensuring the authenticity of products. Each item can have a unique identifier on the blockchain, providing consumers with a verifiable history of the product’s journey. This digital tagging system builds trust and confidence in the authenticity of products, reducing the likelihood of counterfeit goods and improving the overall customer experience.
Amazon, Alibaba, Nestle and Walmart are some companies using the blockchain technology in retail.
7. ENERGY MANAGEMENT: This industry stands to benefit from blockchain’s decentralized approach to the production, distribution, and consumption of energy. It facilitates transparent tracking of energy production and consumption, enabling peer-to-peer energy trading. This transforms the energy sector into a digital marketplace, where individuals can buy and sell excess energy directly, fostering efficiency, sustainability, and decentralization in the energy ecosystem. The International Renewable Energy Agency (IRENA) sees blockchain as a tool for enhancing the flexibility and efficiency of energy systems¹⁰. This endorsement underlines blockchain’s transformative potential in creating a decentralized marketplace for energy trading.
8. LEGAL SECTOR: Blockchain’s secure and verifiable records can simplify and expedite processes such as contract management and intellectual property protection. Smart contracts on blockchain can automate and enforce agreements, reducing the need for intermediaries and minimizing the risk of disputes. This ensures greater efficiency and transparency in legal operations, saving both time and resources.
9) MEDIA AND ENTERTAINMENT: This industry can leverage blockchain to revolutionize royalty payments for artists and content creators. Smart contracts automate royalty distribution, ensuring fair compensation in a transparent and timely manner. This not only addresses long-standing issues of fairness and transparency but also streamlines payment processes, creating a more equitable ecosystem for creators in the digital age. The World Economic Forum¹¹ recognizes the pivotal role blockchain plays in payment systems.
As blockchain technology continues to evolve, its versatile applications across different sectors promise to redefine how businesses operate. The ongoing integration of blockchain into diverse industries holds the potential to shape a future where innovation and integrity are central pillars of business operations.
BLOCKCHAIN IN GOVERANCE, POLITICS AND VOTING/ELECTORAL SYSTEMS
Blockchain technology introduces transformative possibilities in the realms of elections, politics, and governance, offering transparency, security, and inclusion to these fundamental aspects of democracy.
One notable advantage is the prevention of voter fraud. With blockchain, each vote is securely recorded, creating an unalterable and transparent trail. This not only safeguards against fraudulent activities but also boosts the overall integrity of election outcomes, ensuring that the voice of the people is accurately represented.
Furthermore, blockchain-based voting systems provide a secure and tamper-proof record of election results. This is particularly crucial in instances where electoral disputes arise. The transparent and verifiable nature of blockchain data ensures that election audits can be conducted with confidence, resolving disputes efficiently and promoting the overall credibility of the democratic process.
Voatz, a blockchain-based mobile voting platform, conducted successful pilots in several U.S. states, showcasing the technology’s ability to facilitate secure and accessible remote voting.
Concerns related to the manipulation of election results are addressed by the blockchain technology. As stated by Alex Tapscott, co-author of “Blockchain Revolution,” blockchain has the potential to
“create a world where corruption is difficult if not impossible¹²”.
Blockchain is also instrumental in facilitating greater accessibility to the electoral process. Through secure and verifiable digital identities on the blockchain, citizens can participate in elections remotely. This inclusivity is especially impactful for individuals who face challenges such as geographical distance, disabilities, or other barriers to physical participation. It’s like having a digital ballot accessible to all, promoting a more inclusive democratic experience.
The decentralized nature of the technology means that there is no central point vulnerable to hacking or interference. Each node in the blockchain network verifies the information, making it exceedingly difficult for malicious actors to manipulate election outcomes. This level of security instills confidence in citizens that their votes are accurately represented and protected from external influence.
Beyond the electoral process, blockchain can enhance political and governmental transparency. By recording campaign donations and expenses on a public and secure ledger, blockchain mitigates the risk of corruption and provides citizens with a clear view of the financial aspects of political campaigns. It’s a digital ledger that anyone can access and verify, fostering accountability and trust in political processes
In governance, blockchain’s decentralized approach can streamline bureaucratic processes and reduce inefficiencies. Smart contracts - executable pieces of code on the blockchain - can automate and enforce agreements, eliminating the need for intermediaries and minimizing the risk of disputes. This not only accelerates decision-making processes but also enhances the transparency of government operations. It’s like a digital assistant that ensures that governmental agreements are executed automatically and transparently.
Blockchain also plays a crucial role in securing the integrity of public records. Governmental documents, land registries, and legal records can be securely stored on the blockchain, creating tamper-proof records that are easily verifiable. This enhances the overall trustworthiness of government records, reducing the potential for corruption and providing citizens with confidence in the accuracy and permanence of public information.
Furthermore, blockchain can empower citizens in the decision-making process through secure and transparent voting mechanisms. Decentralized governance models built on blockchain allow citizens to participate directly in decision-making, ensuring that their voices are heard. You can imagine it as being a digital town hall where citizens can contribute to the decision-making process in a secure and verifiable manner, fostering a more inclusive and participatory form of governance.
In essence, blockchain’s contributions to politics go beyond merely ensuring secure and transparent elections; it revolutionizes the very foundations of democratic participation, fostering trust, inclusivity, and accountability. As blockchain technology continues to mature, its potential to positively impact political systems worldwide remains a beacon of promise for creating more resilient, fair, and participatory democracies.
HOW BLOCKCHAIN IS CREATING THE NEXT PHASE OF THE INTERNET: WEB 3.0
Blockchain is poised to shape the future of technology and redefine the internet landscape through the evolution known as Web 3.0. At its core, Web 3.0 represents a new paradigm in internet development, characterized by decentralization, enhanced user control, and the integration of advanced technologies like blockchain. In this future iteration of the internet, blockchain serves as a foundational layer, providing the infrastructure for a more secure, transparent, and user-centric digital ecosystem. As stated by Don Tapscott¹², co-author of “Blockchain Revolution,” blockchain is the "internet of value,” suggesting its transformative impact beyond information exchange.
One key aspect of Web 3.0 is the move towards decentralized applications (DApps) built on blockchain platforms. These applications leverage the decentralized nature of blockchain to operate without reliance on a central authority. This decentralization not only enhances security by reducing the risk of data breaches but also promotes user privacy by giving individuals greater control over their personal information. The applications operate like a peer-to-peer network, putting users in the driver’s seat of their digital experiences.
Blockchain’s role in shaping the future of technology extends to the Internet of Things (IoT). As IoT devices become more prevalent, blockchain provides a secure and decentralized framework for managing the vast amounts of data generated by these devices. The tamper-resistant nature of blockchain ensures the integrity of IoT data, making it reliable for various applications such as smart cities, supply chain management, and healthcare. It acts as a secure ledger for all IoT devices, ensuring the trustworthiness of the information they generate.
Moreover, blockchain facilitates the tokenization of digital assets, a key component of Web 3.0. Through tokenization, real-world assets like real estate, art, or even intellectual property can be represented as digital tokens on a blockchain. This not only enhances liquidity, but also democratizes access to traditionally illiquid assets, enabling a digital marketplace where assets can be easily traded, opening up new possibilities for investment and ownership.
Web 3.0’s vision is incomplete without addressing the challenges of identity and privacy on the internet. Blockchain provides a solution through decentralized identity (DID) systems. Users can have control over their digital identities, deciding what information to share and with whom. Blockchain ensures the security and integrity of identity data, reducing the risks associated with centralized identity management systems. It’s like having a digital passport that only you can control, enhancing privacy and security in online interactions.
Interoperability is another key feature of Web 3.0, and blockchain plays a crucial role in enabling seamless communication between different platforms and services. Blockchain protocols that support interoperability ensure that data and assets can flow between various decentralized applications and ecosystems. They act as the universal translator for the internet, breaking down silos and fostering a more connected and collaborative digital environment.
Blockchain’s integration into Web 3.0 is steering the future of technology towards a decentralized, secure, and user-centric internet. From decentralized applications to tokenized assets, blockchain’s influence extends across various facets of the digital landscape, promising a future where individuals have greater control, privacy is prioritized, and the internet becomes a more open and interconnected space.
CONCLUSION
Blockchain emerges as the technology for everyone, promising a transformative impact across diverse facets of our lives. Whether in personal finance, business operations, governance, or the evolution of the internet, blockchain’s inherent characteristics of transparency, security, and decentralization redefine how we interact with technology. In the realm of personal finance, blockchain-enabled cryptocurrencies empower individuals with financial autonomy and inclusivity, transcending traditional barriers. Businesses benefit from streamlined data management, ensuring transparency in supply chains, healthcare, real estate, and beyond. The democratic principles of blockchain pave the way for free and fair elections, enhancing trust in political processes and governance. As the backbone of Web 3.0, blockchain reshapes the future of technology, fostering decentralization, user control, and interoperability.
In this digital renaissance, blockchain is not merely a technological innovation but a catalyst for a more accessible, secure, and equitable world. It’s the cornerstone of a financial revolution where individuals take control of their assets, a guardian ensuring the integrity of global business transactions, and a beacon guiding us toward a participatory and trustworthy digital future. Regardless of your reason for interacting with this technology, it holds the promise of a more inclusive, transparent, and connected world for everyone.
REFRENCES
- NORC at the University of Chicago. (2021, July 22). More Than One in Ten Americans Surveyed Invest in Cryptocurrencies. https://www.norc.org/research/library/more-than-one-in-ten-americans-surveyed-invest-in-cryptocurrenci.html:
- Grayscale Investments LLC. (2023, October 26). Rising Demand for Bitcoin as Digital Gold. Grayscale Insights. https://www.grayscale.com/research/market-commentary/october-2023-rising-demand-for-bitcoin-as-digital-gold
- Triple-A. (2023, October 26). Cryptocurrency Ownership Data — Triple-A. https://triple-a.io/crypto-ownership-data/: https://triple-a.io/crypto-ownership-data/
- Grand View Research. (n.d.). Smart Contracts Market Size, Share & Trends Analysis Report By Blockchain, By Technology (Ethereum, Rootstock, Hyperledger), By End Use, By Region, And Segment Forecasts, 2021–2028. Retrieved from https://www.grandviewresearch.com/industry-analysis/smart-contracts-market-report
- Antonopoulos, A. (2016). The Internet of Money. Merkle Bloom LLC
- IBM Food Trust Website. https://www.ibm.com/products/supply-chain-intelligence-suite/food-trust
- Sage Journals (2023, March 15). Adoption of Blockchain Technology in Supply Chain. https://journals.sagepub.com/doi/10.1177/21582440231160143
- Han, Y., Zhang, Y., & Vermund, S. H. (2022). Blockchain Technology for Electronic Health Records. International journal of environmental research and public health, 19(23), 15577. https://doi.org/10.3390/ijerph192315577
- Accenture (2018, Jan 30) Insurers Are Unblocking Blockchain, Preparing for the Future. https://insuranceblog.accenture.com/insurers-are-unblocking-blockchain-preparing-for-the-future
- IRENA (2018 November 7) Blockchain: A New Tool to Accelerate the Global Energy Transformation. https://www.irena.org/news/articles/2018/Nov/Blockchain-Enabling-The-Internet-of-Electricity
- World Economic Forum (2021, April 28). How blockchain technology is fixing payments today and what comes next. https://www.weforum.org/agenda/2021/04/how-blockchain-technology-is-fixing-payments-today-what-comes-next/
- Tapscott, A., Tapscott, D. (2016) Blockchain Revolution. Penguin
