Since its introduction in 2008, Blockchain has evolved and outgrown cryptocurrencies, with modern developers finding use cases for various industries. Blockchain offers a decentralized, immutable ledgers that can be used to enhance privacy, transparency, and security. The technology is deployed in developing apps and systems for cybersecurity, finance and banking, healthcare, and many other industries. Here’s an overview of the 10 best innovations driven by Blockchain technology:
1. Non-fungible Tokens
Blockchain has made it possible to tokenize various assets, including real-world assets like art, stocks, and real estate. Tokenization can also be done for digital assets that represent the ownership of virtual real estate, music, collectibles, and artwork. Blockchain drives NFTs, which provide immutable proof of ownership of tokenized assets. The tokenized assets can also be sold fractionally or traded, providing reliable liquidity to assets that were traditionally illiquid.
2. DeFi Platforms
Blockchain networks are behind the development of decentralized finance platforms that offer lending, borrowing, trading, and other financial services without a centralized authority. DeFi platforms completely take out banks and other central authorities to provide more open, transparent, and secure services. Instead, the custody of assets and services is assigned to software systems with cryptographically connected nodes.
3. Smart Contracts
Self-executing contracts, also known as smart contracts, are another result of Blockchain technology. These contracts feature terms of agreement that are written into the code and are automatically enforced and executed, eliminating the need for intermediaries that usually handle the verification process. Smart contracts were introduced by the Ethereum platform and are widely used in real estate, insurance, supply chain, and other industries.
4. SCM Tracking
Blockchain technology enhances transparency, security, and tracking in supply chain management. The technology enables the production and preservation of real-time, tamper-proof records of product movement and ownership. Examples include IBM Food Trust, which uses blockchain to track food products from the farm to the table. Blockchain technology also authenticates transactions and provides transparent fee pre-approval and auditing without using centralized intermediaries.
5. Cryptocurrencies
The introduction of Bitcoin in 2009 will forever be linked to the rise of Blockchain technology. Bitcoin and other popular virtual currencies are accepted by various businesses, from tech stores to betting sites. For instance, sweepstakes casinos accept Bitcoin, Ethereum, Litecoin, and many other cryptocurrencies from players who want to purchase gold coins to enjoy slots, roulette, blackjack, and other games. Real money casinos and betting sites also accept crypto deposits and withdrawals, and some even have exclusive bonuses for such payments.
6. Interoperable EHR Systems
Electronic health records are transitioning from traditional databases to Blockchain-driven systems that allow the secure storage and sharing of sensitive health information. Blockchain-powered EHR makes it easier for authorized medical professionals to access patient health records while maintaining data immutability across all repositories. These systems can also be used alongside AI algorithms to synthesize cross-boundary data and accommodate greater integrations.
7. Decentralized Identity Management
Blockchain-based decentralized identity management systems give people control over their personal data, eliminating the need to store identity data in centralized servers. These systems offer secure identity management, allowing users to share their data with organizations on an on-demand basis. Blockchain also enhances user authentication in digital channels by providing tamper-proof shareable ledgers with verified credentials. The digital credentials can be used across various websites, including banks, clinics, and government services. Identity management can also be used to increase voter turnout and reduce fraud during elections.
8. Rights Management Systems
Blockchain-powered systems can enhance statistic transparency, especially in the arts and entertainment industry. Artists, producers, and musicians find it harder to track their royalties because streaming platforms have full control and oversight over the transparency of their play statistics. Blockchain provides a single ledger that autonomously logs play stats. The records are immutable, so artists can track their royalties and earn fairly.
9. Autonomous Cybersecurity
Blockchain’s immutable ledgers can be deployed to provide autonomous cybersecurity and protect networks from attacks. The technology can be used to capture and record time-stamped screenshots of networks and other resources. AI and machine learning systems can then be deployed to analyze the records and flag suspicious activity. This autonomous monitoring allows cybersecurity teams to react quickly to breaches and track hackers faster than before. Hackers are no longer able to hide their trails because the records stored in blockchain networks are immutable.
10. Web 3 Apps
Blockchain is behind the shift toward decentralized and democratized apps and systems. Web 3 is the third iteration of the internet, which is expected to become the new norm. It evolves from the current Web 2 infrastructure, which relies on centralized servers and computers. Web 3 will feature interconnected systems, eliminating the need for centralized data storage locations that are prone to paralyzing attacks from hackers. Blockchain also enables the development of decentralized applications that can be delivered, updated, and managed remotely.
Key Takeaways
As we move towards a more decentralized world, Blockchain will become the foundational technology behind most innovations. Centralized servers, systems, and authorities are gradually becoming obsolete. Blockchain increases transparency without compromising privacy. The technology also takes control away from centralized authorities and gives it to the people. However, developers of Blockchain-based systems and applications must make sure the technology is secure and immune to security breaches, which remain a big concern.
