Revolutionary Changes in a Range of Industries Triggered by Blockchain
Just a few years ago, blockchain was a “mysterious” phenomenon discussed and used solely by computer geniuses. It used to be treated more like science fiction then a real innovation with great potential. But everything started to change when blockchain showed what it was capable of being implemented into various industries, ranging from medicine to entertainment. The potential of blockchain has long ago surpassed just incredible returns.
Blockchain can become a magic wand for the industries that are stuck in the middle of their development.
Gambling industry
Many gamblers and industry-related experts are increasingly excited about blockchain-based online poker; they call it the next stage of poker’s evolution. But it’s not only poker players that are interested in blockchain. Numerous computer experts, blockchain companies, and IT specialists are fond of the technology, which has broadened the poker community by a significant amount. The talents of both poker players and scientists have been pooled in an effort to bring the idea to life.
Today, there are tons of online platforms where blockchain-based poker is played, and the industry is growing faster than ever before. Blockchain is slowly turning poker upside down, creating a new reality for the fans of the world’s most popular game.
Blockchain has made the game totally decentralized. Online players can start playing from any part of the world, which is a great opportunity for the industry to grow. There’s nothing that can stop the game — no hacker attacks or technical errors. Apart from that, the technology helps to ensure that players and casinos both play fair, without cheating or manipulation.
DeFi
Decentralized finance — an industry where financial products and services are provided with the help of decentralized networks — has become widely recognizable on the world’s financial stage. The idea stands for the industry consisting of fintech applications all being developed and running on the basis of blockchain technology. Commonly used financial tools are now transferred to blockchain with the aim to make them fully decentralized and, as a result, uncontrollable by state authorities or large corporations. It attracts clients and makes the system more accessible to millions of people around the globe.
Cryptocurrencies and blockchain technology exist due to a great number of computers gathered together to the hash rate — computing power that makes the network live. Some cryptocurrencies are backed by fiat currencies or commodities by pegging their prices to reserve assets — these are called stablecoins. Other currencies are running on the basis of smart contracts –a special coding written into the blockchain and representing an agreement between buyer and seller.
Smart contracts allow for the transactions to be executed, controlled and verified. The system is completely decentralized with no third parties involved. They make transaction transparent and trackable, all while maintaining the anonymousness of parties and perform terms of a contract. Smart contracts have much in common with decentralized finance and represent a great basis for DeFi development, so the possibilities here are outstanding.
Digital Identity
The notion of digital identity has emerged along with the global network. The more the internet penetrates human life, the more vulnerable personal information and privacy becomes. People share personal critical data and important ID documents like ID cards or medial information for numerous reasons. Therefore, there emerged a need to protect personal identity and, consequently, the solutions came soon after. Blockchain appeared to be one of the first to offer the technology to make it to the next level.
Digital identity can become a key that will be perfectly secured with the help of blockchain. All the data will be stored on the blockchain and can be easily accessed whenever needed. It will be used as a proof of a person’s identity, like a personal signature that can show the person’s will in legal issues, medical records, agreements and contracts, and any other processes. One of the most important characteristics is that blockchain-based digital identity can’t be amended or erased; therefore, the chances for speculation are minimal.
Digital identity represents a brilliant example of a practical blockchain application. Many industries are in need of a duly organized database and record-keeping instruments. Thus, medical institutions often need an access to old data to carry on research and banks can’t allow for information to be lost. These are only a few examples of industries whose operation depends entirely on the system of data storing and protection.
A widely spread system of digital identities could give more opportunities to people from underdeveloped countries where citizens have problems with receiving paper identification documents. A digital identity could give them access to various online services.
Payment Systems
The initial practical application of blockchain was payment processing for Bitcoin. Being widely used for maintaining operations and transactions in cryptocurrencies, blockchain has all the chances to become the main instrument for processing payments in fiat.
Blockchain can get payments to the stage of instant transfers — no longer then sending a message — but with the benefit of being completely decentralized, meaning there will be no authority to account to. Having a wallet operating on blockchain, users can send money from one to another directly with no payment processing intermediary, like Visa, Maestro, or a bank. This will definitely attract millions of people, though some risks are still present.
Blockchain has a characteristic of storing blocks that can’t be changed or erased. It means that once the payment was sent from one blockchain-based wallet to another, the transaction can’t be cancelled, so there’s no room for mistakes. Another serious issue is that access to the wallet can’t be restored if lost, though this can be avoided by backing up a private key. Many state that these issues must be addressed before offering the solutions to the world, but it’s only a question of time, because the technology has boundless potential, which no one doubts.
