Unlike traditional databases, blockchain data is distributed across many machines, and all copies must match to be valid. For example, the Bitcoin blockchain gathers transaction data into a 4MB file called a block. Once full, the data is encrypted to create a unique hash, which links to the next block, forming a chain.
Blockchain decentralisation means data isn’t stored in one place but across many computers or devices in a network. This ensures data redundancy and accuracy. If someone tries to alter a record on one computer, other nodes in the network detect the change by comparing block hashes, preventing unauthorised modifications.
Once data, like cryptocurrency transactions, is recorded, it’s irreversible due to secure proof of work. Blockchains can also securely store various information types, such as legal contracts or inventory records, by representing them as tokens through hashing.
However, blockchain isn’t just for cryptocurrencies. The technology has now expanded to include real-world applications, from the financial sector to real estate.
Blockchain in financial services
In the financial sector, blockchain makes sending funds faster and cheaper, particularly for international transactions.
Traditional bank transfers can take days and involve various intermediaries, each adding fees. In contrast, the technology allows transactions to be completed in minutes, reducing time and costs.
Supply Chain Management
In supply chain management, blockchain provides a way to track products—from their origin to their final destination. This transparency helps companies quickly identify when and where problems occur. For example, this could allow them to pinpoint the source of contamination in a batch of food products By having single source of truth for every step in the supply chain, companies can ensure the authenticity and quality of their products, improving consumer trust and safety.
Blockchain in healthcare
In healthcare, blockchain can be used to store patient records securely, allowing them to be easily shared between doctors and hospitals while maintaining privacy. This ensures patient information is accurate and up-to-date, which is crucial for effective medical treatment. Additionally, blockchain can help streamline administrative processes and reduce errors in medical records.
Other applications for Blockchain
Blockchain also has the potential to revolutionise voting systems by making them more secure and transparent. Each vote can be recorded in a way that is nearly impossible to alter, ensuring the integrity of the election process. This technology can help reduce fraud and increase voter confidence, as every vote is accurately counted and verified.
The real estate industry can benefit from this tech by simplifying and securing property transactions. Blockchain can reduce the need for intermediaries like brokers and lawyers, making the buying and selling process faster and more transparent. This can also help prevent fraud and ensure that property records are accurate and tamper-proof.
Digital identity management is another area where blockchain can play a significant role. By creating secure digital identities, blockchain can help individuals prove who they are online without sharing excessive personal information. This can improve security and privacy for online interactions, reducing the risk of identity theft and fraud. Blockchain-based digital identities can be used for a variety of purposes, from logging into websites to accessing government services.
Blockchain technology offers numerous benefits across different industries, and its applications continue to grow, demonstrating its potential to transform various aspects of life.
- Blockchain
