Beyond Bitcoin: How Blockchain technology could change the world
It has the potential to revolutionise how we record transactions, exchange value, transfer ownership. Some predict that its adoption will be as big as the impact of the internet. But how can blockchain technology work in the real world? In this article, we’ll look at a few examples of its application in everyday life — and how it could transform the way countless industries operate.
Blockchain’s most commonly known use is to record cryptocurrency. Bitcoin, for example, uses a blockchain as a specific type of database — a public ledger of all transactions in the Bitcoin network. This data is stored in blocks which are then chained together, hence its name.
The Bitcoin blockchain is decentralised, so no single entity has control. Rather, its control is spread across all users — so the more people that use the blockchain, the more decentralised it is. Every record within the blockchain is permanently stored and viewable by anyone with a computer.
Users can add new records, but cannot change existing ones. And they can view it around the clock, 365 days a week. Which, in short, means blockchain is great for providing data in a transparent way — because everyone can get to see what’s in it, wherever and whenever.
But outside of the recording of crypto transactions, how can blockchain technology be used in a real life setting? Can it be applied to normal, everyday transactions and interactions? Could it change, improve, solve the many issues in supply chains, financial services, data breaches?
Yes, absolutely. Blockchain has huge potential to transform many areas of everyday life — from food supplies to the cost of our car insurance..
Voting
Large scale election processes have long been the subject of scrutiny. Paper voting, regarded as expensive and open to fraud, was replaced by electronic voting. But quite quickly, electronic voting proved vulnerable to manipulation, with many authorities switching back to paper voting as the preferred system.
But what if blockchains could be used to cast and store votes? The upshot would be a system where vote counts could be accessed by everyone, and tampering would be almost impossible. While this could provide a solution, organisations working on this type of system do have to overcome some problems — namely, keeping voter identity secure, and creating the software that is able to withstand malware and attacks.
Food industry
Right now, when food products leave a factory, they follow a pathway that can travel halfway across the world before it gets to the consumer. In the event of a product recall, the logistics in tracking down these products can take days, sometimes weeks. Every year, around half a million people die from food-borne illnesses, mainly because it takes so long to track down where the product has gone.
A digital certificate registered on a blockchain could contain a variety of essential information: where the food was harvested, on what date, details on the production process, the temperatures it was stored at, the people involved in its journey, and its eventual destination. Supermarkets are already working on food tracking which can pinpoint the location of a box of contaminated food in seconds rather than weeks.
Cars
The auto industry has long suffered from poor record keeping, fraudulent data, and counterfeit parts. From odometer fraud to cloning a vehicle, it’s an industry where it’s still very easy to bluff.
Blockchain technology could revolutionise the manufacturing, selling, sharing and insuring of cars. Some car manufacturers are already using it to improve processes within their supply chains.
Blockchain also has a role to play in crime prevention. Enforcement officers could trace the origins of stolen cars more easily, odometer fraud would be almost impossible to carry out, and the entire testing and service history for each car could be quickly and easily accessed. This would mean that a car’s value could be more fairly assessed.
This type of technology could also provide a better insight into a vehicle’s use providing better deals on finance and insurance. With data being tracked on how often the car is used, drivers could begin to pay a ‘Pay as you drive’ charge based on usage and accurate data. Blockchain technology could also provide many solutions for manufacturers including tracking parts and even issuing recalls on vehicles with faults.
Music
Did the internet kill the music industry? While some argue it actually democratised it (allowing unsigned artists a bigger platform than before), it’s safe to say that the springing up of peer-to-peer music sharing platforms has created monetisation problems that started with Napster and continue with music streaming apps like Tidal, Spotify and Apple Music.
Despite this, new technologies are taking shape that could help artists receive the money they deserve. With decentralised, transparent contracts, musicians could set their royalties and get paid in full and on time.
Further afield, blockchain technology can be utilised by venues to reduce counterfeit tickets, and record companies who can trace music streams to ensure artists are paid for their contributions.
As a technology for digital assets, blockchain technology is the perfect solution. It’s cost effective, secure, transparent, and efficient. But in the real world, there are obstacles that need to be overcome before widespread adoption, namely: data privacy, scalability, security and standardisation. Fixes to these will take time to develop, but are certainly not insurmountable. With enough time, blockchain technology has every chance of becoming as commonplace as the internet, and second nature to business and administration.
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