Blockchain Technology: Beyond Cryptocurrencies

Introduction:
Blockchain can be seen as a platform for decentralized computation and information sharing, which
provides an option for multiple authorities to cooperate and coordinate with each other to collaborate
to make decisions and work together. Blockchain is a distributed, immutable, indisputable, public ledger.
To understand the blockchain basics, you need to know the three main features of blockchain:

 Immutability: Immutability refers to the feature that any new block added to the blockchain
is referred to as the previous block. This makes a permanent chain of blocks linked with each
other. Also, no information present in the blocks can be modified once it is deployed on the
blockchain. This maintains the integrity of the blocks and makes it immutable.

 Verifiability: As the ledger is decentralized, the blockchain has a copy of itself on all the nodes
participating in the blockchain network. This makes it possible to verify the transactions easily
and securely as there is no single point of failure.

 Distributed Consensus: Distributed consensus is a protocol that decides which

participant of the node will add the new transaction on the blockchain. As it is a distributed
network, if most participants agree, only the proposed transaction is added on the blockchain.

Different Types of Blockchain

There are presently three types of blockchains: public blockchains, private blockchains, and consortium
blockchains.

1. Public Blockchains

These blockchains store data on a public ledger, which can be viewed by every user on the internet.
Users can modify and verify the blocks and then add these blocks on the blockchain.

2. Private Blockchain

These blockchains are managed by an authority and only verified, and permitted users can access the
data on the blockchains.

3. Consortium Blockchains

A group of organizations manages these blockchains, and they can only modify the blockchains.
 Applications of BlockChain Technology

1. Asset Management
Blockchain plays a big part in the financial world and it is no different in asset management. In general
terms, asset management involves the handling and exchange of different assets that an individual may
own such as fixed income, real estate, equity, mutual funds, commodities, and other alternative
investments. Normal trading processes in asset management can be very expensive, especially if the
trading involves multiple countries and cross border payments. In such situations, Blockchain can be a
big help as it removes the needs for any intermediaries such as the broker, custodians, brokers,
settlement managers, etc. Instead, the blockchain ledge provides a simple and transparent process that
removes the chances of error.

2. Cross-Border Payments
Have you ever tried to make cross-border payments in different currencies from one country to
another? This can be a long complicated process and it can take many days for the money to arrive at
its destination. Blockchain has helped in simplifying these cross border payments by providing end-to-
end remittance services without any intermediaries. There are many remittance companies that offer
Blockchain services which can be used to make international remittances within 24 hours.

3. Healthcare
Blockchain can have a big impact on healthcare using smart contracts. These smart contacts mean that a
contract is made between 2 parties without needing any intermediary. All the parties involved in the
contract know the contract details and the contract is implemented automatically when the contract
conditions are met. This can be very useful in healthcare wearing personal health records can be
encoded via Blockchain so they are only accessible to primary healthcare providers with a key. They also
help in upholding the HIPAA Privacy Rule which ensures that patient information is confidential and not
accessible to everyone.

4. Cryptocurrency
Perhaps one of the most popular applications of Blockchain is in Cryptocurrency. Who hasn’t heard
about bitcoin and it’s insane popularity. One of the many advantages of cryptocurrency using blockchain
as it has no geographical limitations. So crypto coins can be used for transactions all over the world. The
only important thing to keep in mind is exchange rates and that people may lose some money in this
process. However, this option is much better than regional payment apps such as Paytm in India that are
only relevant in a particular country or geographical region and cannot be used to pay money to people
in other countries.
5. Birth and Death Certificates
There are many people in the world who don’t have a legitimate birth certificate especially in the poorer
countries of the world. According to UNICEF, one-third of all the children under the age of five don’t
have a birth certificate. And the problem is similar to death certificates as well. However, Blockchain can
help in solving this problem by creating a secure repository of birth and death certificates that are
verified and can only be accessed by the authorized people.

6. Online Identity Verification

It is not possible to complete any financial transactions online without online verification and
identification. And this is true for all the possible service providers any user might have in the financial
and banking industry. However, blockchain can centralize the online identity verification process so that
users only need to verify their identity once using blockchain and then they can share this identity with
whichever service provider they want. Users also have the option to choose their identity verification
methods such as user authentication, facial recognition, etc.

7. Internet of Things
Internet of things is a network of interconnected devices that can interact with others and collect data
that can be used for gaining useful insights. Any system of “things” becomes IoT once it is connected.
The most common example of IoT is perhaps the Smart Home where all the home appliances such as
lights, thermostat, air conditioner, smoke alarm, etc. can be connected together on a single platform.
But where does Blockchain come into this? Well, Blockchain is needed for providing security for this
massively distributed system. In IoT, the security of the system is only as good as the least secured
device which is the weak link. Here Blockchain can ensure that the data obtained by the IoT devices are
secure and only visible to trusted parties.

8. Copyright and Royalties

Copyright and royalties are a big issue in creative sectors like music, films, etc. These are artistic
mediums and it doesn’t sound like they have any link with Blockchain. But this technology is quite
important in ensuring security and transparency in the creative industries. There are many instances
where music, films, art, etc. is plagiarized and due credit is not given to the original artists. This can be
rectified using Blockchain which has a detailed ledger of artist rights. Blockchain is also transparent and
can provide a secure record of artist royalties and deals with big production companies. The payment of
royalties can also be managed using digital currencies like Bitcoin.

Conclusion:
While cryptocurrencies have been at the forefront of blockchain's rise, the technology's potential goes
far beyond digital currencies. Blockchain has the power to transform industries and reshape the way we
interact, transact, and share information. From revolutionizing supply chain management and
healthcare systems to improving identity management and voting systems, blockchain offers
transparency, security, and efficiency across various sectors. As the technology continues to evolve, we
can expect even more innovative applications that will shape the future of our society.