Is blockchain a possibility or a fuss?

What crypto technology can do and how companies are already using it.

Blockchain devices will likely be a big deal in the next few years. Bitcoin has supported the adoption of the blockchain technology that underlies it. Several companies are intrigued by the blockchain concept, but the innovation is still in its infancy.

What previously only aroused the curiosity of insiders has now been discussed by the general public since 2017 at the latest: the realm of cryptos and the underlying blockchain or distributed ledger technology.

The blockchain is a public ledger that shows who owns what and when it was transferred. This database is not stored in a single place but on multiple machines. These devices are connected to each other via a system.

Blockchain security

The advantage of the blockchain is that this database cannot be manipulated. Since each trade executed can no longer be manipulated, it is safe.

What mechanism is behind it? A blockchain consists of blocks filled with data. Each of these blocks has its own data set. Since each of these blocks is algorithmically linked to the previous one, none of them can be modified later. Because every network operator can monitor all blocks and operations.

Someone trying to change a block of data on a device would be unsuccessful. The changed chain would be eliminated since all links watch each other. The others would keep working.

An attacker can no longer breach a database with a single attack over a blockchain. A blockchain solution can be helpful in places with a culture of fraud, such as when there are not enough trusted providers for central registers.

When devices connect and talk to each other, blockchain overcomes data security issues in Industry 4.0 that are critical to the European economy.

Another advantage is that the dependency on intermediaries is reduced. Decentralization eliminates the role of banks, registrars, lawyers, and middlemen who benefit from all deals.

While blockchain is revolutionary in terms of data security, crypto investors should ensure they choose a platform that is compliant with the latest online security protocols like Binance, Gemini, Immediate Edge, etc. Take the latter, for example, which claims on its official website: “Immediate Edge prides itself on its highly functional security systems that comply with the latest global financial regulations.”

Smart Contracts

When contracts need to work continuously, blockchains draw attention. Smart contracts was the technical term for it. In reality, these are usually payouts that are activated when certain criteria are met. These intelligent program algorithms are managed on a blockchain and perform their tasks in an if-then manner.

Smart contracts have the potential to replace middlemen like financial institutions. The automated contracts ensure, for example, that a transaction only comes about when the agreed products have been delivered to the recipient.

areas of application

DLT is changing the world, and we’re only scratching the surface of its potential. The implementations differ in form depending on the industry. Three terms are currently emerging:

First of all, smart contracts or device contract solutions are a potential. Second, Decentralized Autonomous Organizations (DAOs) are software companies made up of a mix of smart contracts. The third uses blockchain in industry to connect new approaches to artificial intelligence.

Examples from the business world

Travel

Winding Tree, a Swiss start-up, is developing a decentralized B2B marketplace for travel companies. Airports, accommodations and other travel service providers are all represented on the blockchain-based travel marketplace. This is done to turn off the mediators and ensure visibility. Lufthansa and some other partners have already started working together.

The Sharing Economy and the Internet of Things

Slock is an initiative focused on collaborative consumption. The network aims to facilitate the sharing of items such as unused housing, corporate headquarters, machinery and other redistribution, and real estate investments. This allows Slock to eliminate Airbnb as a middleman.

manufacturing, distribution and retail

IBM is collaborating with other companies on over 400 blockchain initiatives. IBM Food Trust is one of them. Food hygiene, inspections and waste reduction are all goals of the blockchain. IBM is collaborating with 10 major grocers on a testing process using blockchain to track the entire distribution network. The decentralized accessibility is intended to strengthen the trust of everyone involved in the system, not just the end customer.

railroad

The blockchain makes it possible to distinguish people along the entire journey. According to the blockchain documentation, various service providers can be billed according to their performance.

music industry

With blockchain technology, everyone who participates in a track can be fairly rewarded. Third parties such as record labels or music websites, which often withhold a significant portion of funds, are no longer appropriate.

insurance

Without further customer interaction, the blockchain system automates both the purchase process and the damage report in the event of default.

banks

In the perpetual promissory note business, there are several manual links between the obligor, the organizer and the investors. Thanks to the bipartisan transparency of the new technology, many operations can be done digitally. This significantly reduces the resolution release time.

Conclusion

Is it a possibility or a tumult? After more than ten years since Satoshi Nakamoto’s vision, it’s time to take stock.

A significant amount of research is currently being carried out. Not all blockchain applications are generally viable. In such cases, one cryptocurrency outperforms the other on the exchange. Financial institutions will likely create their own cryptocurrency in the future. It is questionable whether Bitcoin has a destiny in its modern version.

Many difficulties, critics argue, can be tackled far more economically with traditional technologies. In addition, mining bitcoins with many computers requires high power consumption. Therefore, before the blockchain spreads, it must first show where there is added value for the company.

In the best case, it will be similar to the development of the PC and the World Wide Web: At first, only a few geeks and tech enthusiasts believe the project will be successful.

However, the breakthrough will only come with a simple graphical interface.

Blockchain technology most likely has a great career ahead of it. However, blockchain applications are currently in a test phase. We can’t wait to see what surprises us after this procedure.

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