Since its First launch, blockchain technology has been associated with the world of cryptocurrencies and because of this, it has raised certain doubts. The lack of transparency of some virtual currencies has created confusion with certain concepts, but this should not really be the case. We will try to explain what blockchain is and how it can help improve digital services.
Blockchain technology:
Blockchain can be described as a set of technologies with different functionalities. Thus, blockchain allows us to create a reliable and secure system for digital operations and transactions. In this way, we can make a decentralized, secure, distributed and synchronized registry without the need for third parties.
This blockchain is like a shared ledger where records are encrypted to provide adequate security. Thus, the chain is updated in a decentralized way, so that each block is transmitted to all nodes. In this way, the veracity of the information is assured, since it is not done by a third party, but by the network of nodes (computers connected to the network).
For example, if company A wants to send company B money, if it does so with blockchain, this transaction remains as a block of data. Thus, these blocks of data are transmitted to each of the parties and it will be those at company B who will approve the transaction. Once approved, the money moves from one to another and the block is added to the chain. This will result in a transparent record that is impossible to erase.
Therefore, blockchain technology records, preserves and protects information in digital transactions without the need for third party companies or entities.
Applications of blockchain technology
The daily life applications are many and varied, as well as recommended. In general, they can result in significant cost savings. Among the main uses we want to highlight the following:
- Financial services: as mentioned above, this is perhaps one of the most common applications of blockchain technology. It offers enormous advantages in the fight against fraud and the traceability of financial transactions.
- Health services: the management of information such as medical records is greatly improved. It offers greater privacy, allowing only authorized personnel to have access to it. It also aids in the traceability of medicines.
- Manufacturing: as in economic transactions, the traceability of any product until it is sold is guaranteed. This will prevent possible counterfeiting or fraud.
- Shipping and logistics: with the simplification of procedures and processes involved in the transport of goods. Exhaustive control and traceability, customs clearance, etc.
- Administrations and governments: countries such as Estonia already rely on blockchain as the basis for public records. That is to say, all management concerning transportation, health, justice, legislation, taxes or even voting goes via blockchain.
- Donations: blockchain helps provide more security and transparency for donations and specific projects.
- Contract and insurance management: where there are two parties that must agree on the conditions, all perfectly recorded in blocks.
In conclusion, blockchain is not only a system for managing virtual currencies, it is much more than that. The future of blockchain will probably be to become “invisible”, but always existing behind all transactional systems and it is here to stay, of course.
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