Why has blockchain become a key technology? In which industries is it applied?

Why is blockchain important and where is it used?

Author: Yu Chen; Translation: Chain News

People often hear about blockchain technology, which cryptocurrencies rely on to record financial transactions between people and businesses. However, the value of blockchain technology is not limited to this.

In fact, this type of system has many other uses that do not rely on centralized storage, and in such systems, many people can safely participate, even if they do not all know each other.

As a computer scientist exploring new technologies for future intelligent communication networks, I and many engineers and developers have proven that blockchain technology is a promising solution to many challenging problems related to trust and security in future network applications. I have seen that blockchain is proving to be very useful, and it has nothing to do with cryptocurrencies.

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Supply Chain

Modern global supply chains require a large amount of information to process products shipped around the world. They are limited by data storage capacity, inefficient paper processes, disjointed data systems, and incompatible data formats. These traditional centralized data storage methods cannot effectively trace the origin of problems, such as the source of low-quality products.

Storing information on the blockchain can improve integrity, accountability, and traceability. For example, IBM’s Food Trust uses a blockchain system to track the process of food from farm to retailer. Participants in the food supply chain record transactions and store them on a shared blockchain, simplifying the regulatory process.

Healthcare

Data ownership and privacy are the top concerns in the healthcare industry. Current centralized systems cannot meet the diverse needs of patients, healthcare providers, insurance companies, and government agencies. Blockchain technology realizes a decentralized medical record access control system to ensure the rights of all stakeholders are protected.

The blockchain system not only allows healthcare providers to securely share patients’ medical records, but also enables patients to track who has accessed their records and determine who has the right to do so.

Banking and Finance

The banking and finance industry benefits from integrating blockchain networks into their business operations. The financial sector has not developed cryptocurrencies with new or different features, but has realized that blockchain systems are a more secure way to store information about traditional currencies such as the US dollar, Euro, and Japanese Yen, as well as financial product information.

Blockchain provides consumers with convenience, allowing them to monitor their transactions almost in real-time from anywhere. Banks also benefit from blockchain, having the opportunity to conduct business more efficiently and securely between institutions.

Property Records

Current property record procedures are cumbersome and inefficient. Traditional paper documents require a lot of time and manpower, and are opaque and easily lost. Blockchain technology eliminates inconvenience, inefficiency, and errors by moving the entire process into digital form, reducing costs.

Blockchain systems allow owners to trust the accuracy and permanent record of their contracts. Remote access is especially important for people living in areas without sufficient government or financial infrastructure.

Elections

Verifying votes and maintaining voter privacy seems to be a contradiction in terms. Blockchain systems have the potential to be a means of promoting a fair and transparent modern voting system. Because it is almost impossible to tamper with, a blockchain-supported voting system can guarantee the transparency of the election process.

A blockchain-based voting system was used in the November 2018 mid-term elections in West Virginia, proving that its security was high enough.

Smart Cities

Smart cities integrate information and communication technology into their facilities, infrastructure, and services, providing their residents with a convenient, intelligent, and comfortable living space. Smart cities are essentially networks of many devices that can communicate with each other to share data. Connected devices can include people’s smartphones, vehicles, electricity meters, public safety monitoring systems, and even residences.

These systems have performance, security, and privacy requirements that centralized information systems cannot handle. Blockchain is the key network technology for building smart cities because it can optimize operations, enhance security, and increase mutual trust among participants.

All future information technology is about decentralization. Today’s centralized architecture cannot meet the increasingly diverse demands of people, who want more free and personalized services, more transparent and secure digital assets, and a more fair and harmonious environment. Blockchain is the key enabling technology for building any secure and durable decentralized information system.

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