Blockchain has revolutionised new-age applications including cryptocurrency. But what are the applications of blockchain outside of cryptocurrency? We all know about the application of blockchain in cryptocurrency but what about its usage beyond this arena? Here’s looking at the possibilities.
Blockchain is a distributed and shared ledger that enables decentralised control. A blockchain comprises blocks or units that are linked through chains. Every chain has encrypted data that is made up with data from the earlier block to build the entire network.
Blockchains are available as both private and public ledgers and specific implementation procedures enable any party to take part while the others will require access and invitation rights.
Some of the major rights of blockchain include provenance, encryption and immutability. There are no limits to the kinds of businesses and industries that may benefit from using blockchain technology.
Blockchain technology has diverse applications, right from digital identity and digital voting to use cases in the healthcare industry.
Bitcoin is already expanding its presence throughout the global finance segment while smart contracts are also being used as replacements for escrow and also for managing digital identity.
Public blockchains are already available, enabling any individual to participate while corporate blockchains leverage private ledgers, thereby restricting authorisation and access alike.
Financial services are already considering the utilisation of blockchains with its immutability and security being favourable for meeting needs in both insurance and banking.
Healthcare companies are already using them to store health data or records while open-source versions of databases are already enabling better access to patient data, thereby enabling superior coordination and communication.
This technology enhances cybersecurity greatly with its core aspects of decentralisation, consensus and cryptography, thereby enabling higher transaction-based trust. Blockchain ensures security control at the highest level for ensuring data confidentiality. Encrypted data in the blockchain makes sure that threats are mitigated without hackers retrieving or reading information in a suitable manner.
Digital identity is enabled immaculately by blockchain technology. It is a self-sovereign identity that cannot be altered and offers more security than conventional systems of identity. It can fully transform the manner in which identities are used for linking to various online services. Blockchain makes sure that this information can be easily traced, audited, and verified, in a matter of seconds. Individuals can curate their personal profiles and control the sharing of their data. Issuers can also verify credentials swiftly with these technologies.
Digital voting is a procedure where voters can leverage a technology-centric process for voting, minus some of the conventional issues of the voting process. The blockchain-based system is fully decentralised and open, while ensuring higher protection of voters. Voter identity stays anonymous and there are decentralised nodes available for electronic voting in this system.
Some of the inherent challenges to the implementation of blockchain beyond cryptocurrency include concerns regarding privacy and security. Some other issues include scalability, interoperability, security, consumption of energy and higher complexity levels.