Blockchains Are Much More Than Just Bitcoin
The popularity of Blockchain technology is credited to Bitcoin virtual currency, however it has wider applications and can be broadly used for numerous processes ranging from tracking ownership to carrying out voting rights.
Bitcoin Blockchain is a specialized database which stores crypto graphically signed fiscal transfers. However, Blockchain is more generalized, enabling it to amass and run computer codes which are technically termed as “smart contracts”.
Unlike regular database it boosts our confidence in it, as it can run on dispersed processing nodes which ascertain a consensus in relation to its contents, making it extremely difficult to meddle with it. Since, Blockchain requires a comprehensive consensus amid the nodes about the uprightness and contents of the distributed database, hence, it is also known as “distributed ledger”.
Why this excitement about Blockchains?
Blockchains are fascinating because the reliability of the contents of the dispersed ledger is independent of any particular individual or firm. Hence, it can make Blockchains ideal as a trusted third-party system and can be used to assist us in numerous viable dealings like conception or reassigning of physical assets, shareholdings, certifications, digital rights, intellectual property or even in franchise matters.
Innovative usage of Blockchains might reduce friction in our society and will provide new avenues to create novel services and ways of doing mutual business.
Whether to trust Blockchain systems or not would be collectively dependent on our perception about the core software technologies, on which the system is based and on our understanding of market incentives, which manipulate the behaviour of the dispersed processing nodes that run Blockchains.
We are still in the phase where we are discovering the limitations, stakes and probable social and economical impact of Blockchains.
Usage of Blockchains
Data61 in CISRO is identifying new ways by which Blockchain technology can be employed across industries. Data61 is planning to use Blockchains to recognize, develop and assess some “proof of concept” systems.
A latest report by UK government has illustrated ways to implement Blockchain technology. While Everledger, a company founded by Leanne Kemp’s uses a Blockchain to document identified physical assets like diamonds and other valuables by recording their attribution and possession of individual goods.
This internationally available provenance track is definitely a breakthrough for new enhanced insurance and finance services and for sure will reduce scam and theft. The same concept can be used for other segments of supply chain like retail, agriculture or pharmaceuticals.
Everledger depends on chief diamond certification companies to assess classify information about individual diamonds. This assessment classification can be autonomously cross-verified.
The application of Blockchain technology requires data integration as the key to secure property for viable systems, and for primary properties. To achieve discretion, cryptography should be used in combination with the Blockchain.
Computer can store programs in the distributed ledger of a Blockchain system, and execute it as and when required during later transactions and business processes. Such programs are generally referred as “smart contracts”.
It signifies that Blockchain systems have widespread applications which include- storing information about market transactions, processing commercial transactions and they can be also be implemented for extensive range of business proceedings.
Blockchain technology is new and is still in its formative years and broader scenarios should be explored for its plausible future which can positively impact efficiency of commercial transactions by reinventing the economy.