Nov 19, 2022
by Aisha

A distributed database or shared ledger known as a "blockchain" exists among the nodes of a computer network. Blockchains serve as digital databases that electronically store data. Just like in Bitcoin, blockchains are well-known for playing an essential role in the maintenance of a secure and decentralized record of transactions in cryptocurrency systems. Without needing to rely on a third party, blockchain can garner confidence and trust as it provides the security and accuracy of the data records.

Blockchain versus Traditional Database

The organization of data in a blockchain is very different from the way it is organized in a database. A blockchain collects data in units called blocks, each of which contains sets of data. Building the data chain known as the blockchain requires connecting filled-out, sealed blocks to those that came before them. Blocks have fixed storage capabilities. When the chain is finished, a new block is made from each piece of data that comes after the one that was just added and added to the chain.

Blockchain Applications

Information regarding financial transactions is stored in blocks on the Bitcoin network. A few companies that have already embraced blockchain technology include Walmart, Pfizer, AIG, Siemens, Unilever, and numerous others. For instance, IBM created the Food Trust blockchain to monitor the path that food products take to get to their destinations.

  •  Banking  and Finance

By integrating blockchain into banks, customers can expect to get done with the entire transaction process in as little time as possible and with enough convenience. Regardless of the day of the week, the time of day, or any holidays, this is essentially the amount of time it takes to add a block to the blockchain. Thanks to blockchain technology, banks can transfer funds across institutions more quickly and securely. For instance, the freezing of funds and shares occurs during the three-day settlement and clearing process in the stock trading business (or longer if trading occurs overseas).

  • Currency

Blockchain is the underlying technology for cryptocurrencies like Bitcoin. From a technical point of view, in a centrally controlled system, the data and money of all the users are at risk with the bank and government. If a customer's bank gets hacked, their confidential information is at risk.

As a result, processing and transaction expenses are reduced. This lowers the risk as well. People that live in places that have an unstable financial system can be provided with a rather stable currency system that consists of more applications and a bigger network, which can give them the opportunity to do business both locally and intentionally.

  • Healthcare

Blockchain can help healthcare professionals keep track of their patients' medical records. It will put the patients at ease to know that their medical records are being written and secured once they have been prepared and signed. A safety key can be used to encrypt and score these records on the blockchain, ensuring their privacy and security.

  • Smart contracts

A computerized contract agreement that can be facilitated, validated, and negotiated as a smart contract with the help of being added to the blockchain. The workings of these smart contracts are based on a set of rules agreed upon by the users. Upon meeting these prerequisites, it is ensured that the agreement’s terms will be followed automatically. A computerized contract agreement that can be facilitated, validated, and negotiated with the help of being added to the blockchain

  • Supply chains

Blockchain will help different suppliers keep track of the sources from which the materials were purchased. Same as the IBM Food Trust. It will allow businesses to cross-check the validity of their own products and renowned labels like "organic," "local," and "fair trade."

Use of the new blockchain process by advertisers

 

  • Fraud prevention

Advertising fraud is a problem that both bots and human accounts commit. Bots are often made to crawl websites and perform useful activities; however, they have started to be used as a platform for criminality. There is a bot problem that has been identified on well-known platforms like Twitter, where advertising plays a significant role. In order to address this issue, Twitter has started to prepare to use blockchain technology.

Blockchain is a good candidate for fraud protection due to a number of variables, including:

  1. Immutability.
  2. High security is due to the decentralized mode of operation.
  3. Transactions can be authenticated as long as there is transparency.
  • Direct-to-consumer digital marketing

Recently, platforms like Google and Facebook have come under fire for problems with the sharing of user data. These platforms gather consumer data in order to more effectively target the proper target audience because they rely heavily on advertising revenue. Unfortunately, many users who would prefer to have greater control over how their data is collected and utilized may believe that this constitutes a violation of their privacy. Businesses can also use the blockchain to inform people who are buying their data because the data cannot be altered or destroyed. Customers will be relieved because they will no longer have to worry about their data on a daily basis.

  • Transparency with consumers and in contracts

Advertising frequently lacks transparency, for example, when platforms present misleading metrics to marketers. For instance, a platform can assert that each of its advertisements receives millions of impressions. In a normal situation, there would be no reliable way to check this information and determine the truth. This offers platforms a simple means of defrauding businesses through misleading advertising. But since a blockchain stores such information in a way that it cannot be altered, it is easily verifiable.

Final thoughts

Blockchain is finally becoming well-known, thanks in large part to bitcoin and other cryptocurrencies, with numerous real-world uses for the technology currently being researched and implemented. Blockchain, a notion that is currently all the rage, promises to do away with middlemen while enhancing accuracy, efficiency, security, and cost-effectiveness in business and government procedures.