There’s no denying that blockchain technology and block infrastructure are exciting inventions with the potential to transform a wide range of businesses in the future. However, with so much buzz around blockchain, it can be difficult to discover its practical, everyday applications — or, to put it another way, blockchain sounds fantastic, but what does it mean for us in real life is less clear.
In this post, we will dismantle the hype and examine some of the practical applications of blockchain technology, based on real-world experiences.
What is blockchain technology, and how does it work with blockchain infrastructure?
But first, let’s go through the basics of blockchain — what it is and how it works – to set the stage for the rest of the discussion.
A blockchain is an open, distributed database that may be thought of as an electronic file used to store information (data). The name is derived from the file’s structure: it is composed of blocks of data, each of which is linked to the block before it, making a chain. It is possible to store data (such as transaction records) in each block, as well as a record of when that block was updated or created.
One of the most important aspects of the blockchain infrastructure is that it does not have any central authority, unlike, say, an enterprise or government body that owns and controls the information. The data is duplicated (distributed) in its entirety over a large number of computers, allowing any user to view the full chain from any location, and anybody with the appropriate encryption keys can make changes to the chain as well. Given that blockchains are decentralised systems for storing and retrieving information, they are very safe. This is because, unlike a centralised database, there isn’t a single point of entry for attackers. As a result, it is particularly suitable for documenting transactions in a safe and secure environment.
What methods are already being used by organisations to implement blockchains?
The first application of blockchain technology was as a component of the cryptocurrency Bitcoin, which is built on the technology. However, the practical uses of blockchain technology go far beyond cryptocurrencies, and the technology is expected to have a significant impact on a wide range of businesses over time.
To illustrate this, consider the following real-world applications of the Blockchain Infrastructure that continue to be promising in 2022:
No More Middle Man
Aggregators, such as Uber, Airbnb, and Expedia, connect service suppliers with clients who require that service. The centralized aggregator is in charge here; they set their own terms and conditions and, of course, charge a fee on each transaction. Blockchains are currently being utilized to eliminate the middleman and offer a secure, decentralized platform for service providers and customers to connect and interact safely and directly.
TUI Group, the world’s largest tour operator, is leading the charge in using blockchains to someday replace travel aggregators like Expedia. The company now stores its contracts on a private blockchain, but it wants to develop a public blockchain where agents and customers can interact directly with hotels. TUI isn’t alone in this endeavour; Winding Tree is another firm working on a decentralized travel booking system, so expect to hear a lot more about blockchains affecting the travel sector in the coming years.
Health-Care Reform
SimplyVital Health, a blockchain company, has already developed two blockchain applications to help with healthcare administration. The first, ConnectingCare, monitors patients’ progress after they leave the hospital, while the second, Health Nexus, is aimed at providing decentralized blockchain patient records. Gem, a startup, is collaborating with the Centers for Disease Control and Prevention to create a blockchain for storing disease outbreak data, with the goal of improving disaster relief effectiveness.
Transactions And Banking Are Improved
Bank Hapoalim is cooperating with Microsoft to establish a blockchain for handling bank guarantees. Barclays has previously launched a number of blockchain efforts for tracking financial transactions and preventing fraud, among other things. Another example is Aeternity’s blockchain platform, which allows users to construct smart contracts that become active when certain circumstances are satisfied, allowing automated payments to be released whenever all participants in a transaction agree that their terms have been met.
Conclusion
Blockchain technology is clearly still in its early stages, and it has a long way to go before it can be deemed popular. However, these examples demonstrate how sectors are beginning to recognize its benefits, and we should expect to see even more organizations invest in blockchains as the technology improves.
