How Will Blockchain Change The World?
How will blockchain change the world? Almost everyone around us is sure that blockchain technology is here to change the world. In this article, we will explore the idea of blockchain’s impact on our world by examining some ways it could potentially shape our future.
The idea that blockchain will change the world comes from the concept of decentralization which is the key driver behind Bitcoin, the first cryptocurrency ever discovered. It was its pseudonymous creator, Satoshi Nakamoto, who created bitcoin and blockchain technology and has led to many discoveries in this area of research.
If you take a look at the timeline of the decentralized cryptocurrency, you will see that it was created around the last global financial crisis. This gives this discovery much more importance and relevance.
In reality, the change has already begun. Many enterprise companies are already implementing their own version of blockchain. However, no one can really predict the future of this tech. As we will explore how blockchain can change the world, you can discover the possible outcomes that could be achieved in the coming years.
How Will Blockchain Change the World?
Before we decide to answer the question at our disposal, we first need to understand the idea behind blockchain technology and how it has the potential to change everything about data storage.
Centralization and Decentralization
If you are familiar with the current system, you will see that centralization is everywhere. It is a tested way to deal with processes and offers control with relatively effective and efficient means. However, it does come with many disadvantages.
One of the main disadvantages is the ineffective approach. Centralized systems are not at all friendly when it comes to efficiency. Furthermore, other obstacles include – no transparency, lack of security, and fraud detection. All these issues are just too much to ignore, now that they have become a part of our daily lives.
With the rise of blockchain, everything changed as it could bring an era of decentralization that eradicate all the inefficiencies of centralized systems.
Blockchain technology is bringing decentralization back into the business world. With the help of blockchain, any business can improve its process and optimize it to new heights. If you are part of any business, then you would already know that it is not possible to manually control and monitor all aspects of the system.
With decentralization, it becomes easier to automate the different aspects of a business or enterprise’s processes. This is because the processes can be stored on a decentralized network and accessed by anyone who has access to it, rather than being stored on one centralized server.
The Concept of Blockchain
A blockchain is a form of the decentralized peer-to-peer network that is spread out all over the world. The system relies on cryptography to ensure that data cannot be corrupted, and every new node or computer has a complete copy of the ledger, making it very difficult for fraudsters to take advantage of any loopholes in the system.
All of this brings decentralization into play. Yes, there is no need for a centralized entity for a blockchain network to function.
Blockchain adoption has always been there among reputable businesses, but the trend has skyrocketed over the past few years due to its potential for altering many aspects of our lives. Blockchain is already starting to show some of the effects it will have on our economy, such as a shift from a centralized model to one that features less overhead from inefficient intermediaries.
Businesses are becoming increasingly confident in adopting a decentralized approach, due to the improved exposure to the benefits it provides. With the blockchain being one of the most prominent technologies in recent years, it’s no wonder that businesses are starting to get more comfortable with this idea.
The distributed nature of a blockchain ensures that it can be used on the internet without the need to create another infrastructure in order to store data. It is not only open-source and uses state-of-the-art cryptography, but its global nature means that it can be accessed by anyone.
Evolution of Centralized to Decentralized Database
Traditionally, data has been stored in relational database systems which you can imagine as advanced Excel spreadsheets that are used to store information. The database tables are stored on a hard drive and served up to the user as needed.
The data is stored in a centralized location. This has its own benefits but also brings along with it a set of challenges. A centralized database suffers from performance when the number of requests has increased manifold, but it also results in an increase in data integrity and an increase in the speed at which requests are processed.
In order to overcome the restrictions imposed by the centralized database, more powerful computers and techniques are needed to process requests faster. All of these can lead to databases becoming more vulnerable to hacking.
Businesses that are seeking to implement artificial intelligence-powered writing assistants as part of their workflow are going to need to make sure that they are properly equipped with the necessary infrastructure. This will include providing them with a reliable internet connection, enough memory and processing power, and enough storage space for the content that is being created. It also has the drawback of requiring a significant amount of upkeep and management.
All of these will be changed by blockchain, which is technically a decentralized database. As there is no centralization, each node has a copy of the database, i.e., ledger. It enables businesses to improve their data redundancy to a whole new level. With its data being encrypted, it also means that hackers have a much harder time trying to break in and steal information from these businesses’ databases.
characteristics of Blockchain Technology
Now that we have an understanding of the evolution of database systems, both centralized and decentralized, let’s take a look at some of the key concepts that define blockchain technology. These five aspects are what make up blockchain technology the most.
- A P2P network is a type of decentralized network where devices can connect to each other without the need for an intermediary. One of these networks, the blockchain, allows for data to be distributed but not copied and this creates a high-quality peer-to-peer database that is both static and public.
- Cryptographic Hash Function: Another key feature of blockchain technology is the use of a new cryptographic hash function. The hash function takes a string input such as “hello” and outputs a number, which is then connected to the next hash function.
- Distributed Ledgers: A major advantage of blockchain technology is the distributed ledger. This feature enables members of a network to have a copy of the ledger, with advanced techniques employed to make sure that consensus is maintained within the network.
- Pseudonymity: The blockchain network lets users remain anonymous if they want to.
- Immutability: Finally, the hash ensures that data cannot be tampered with without the original user’s permission and provides other useful features.
Benefits of Blockchain Technology
All the features that we have discussed so far are impressive from a technical perspective, but what about people who are not technically adept at understanding its complexity? For these individuals, how are they benefiting from these amazing features?
Also, when we say “changing the world,” we mean to change the lives of normal people. The below points will help you understand what blockchain means for most people, and also the impact it has on the economy.
Faster Transactions
It is a common activity for people to send money, both for business-related and personal uses. Most of the services that facilitate payment take a few days to complete, which can lead to issues if you need to send money in an emergency.
The process takes more time if you are doing a foreign transition. Banks generally hold the payment for a few days before they use the SWIFT messaging system to transfer funds. This is done by banks due to strict rules around foreign money transfers in order to avoid any potential issues that may arise from transacting in other currencies.
The solution is blockchain. You can send money without the need to wait for days for the receiver to receive the payment. Faster, cheaper, and more secure, are just a few of the benefits of blockchain technology that may be difficult to see but very beneficial in the long run.
Banks have also been eager to adopt digital tokens for large transfer amounts of money. They generally help banks do bank-to-bank settlements faster and more securely. Blockchain technology can change the world by making transactions faster and more secure.
Better Land Registration
If you’re ever interested in buying a house, you can expect to go through a fair amount of steps that include plenty of paperwork and can take up to a few months. The process itself is quite time-consuming and tedious.
In addition to the cost of renovations, you also need to take into account the cost of employing a lawyer. The process of buying a house depends on the area where you are living, but in many cases, it can be a lengthy and arduous process that takes time and effort.
The real estate market also suffers from a lack of trust. It has become too easy to commit fraud and falsifies paperwork, leading to transactions that can’t be validated. To ensure trust, there needs to be a lot of paperwork checks as well as multiple parties involved, such as government agencies, banks, and so on!
One of the most appealing features of blockchain is that it eliminates so many intermediaries. Businesses no longer have to worry about where their items are coming from, or how much they are paying for them because they can verify the owner and authenticity of a property before making the deal.
The agreements are transparent, tamper-proof, and provide you with a streamlined purchasing experience. This means that you’ll have to do very little paperwork to get what you need – which also helps to improve your buying experience.
Product Provenance
Blockchain technology is the perfect solution to combat fraud, as it securely and seamlessly integrates with the supply chain. Every product that you buy needs to go through multiple destinations before arriving at your doorstep. But during its travels, it can be vulnerable to multiple fraud entities that may tamper with the product for their own benefit. Blockchain technology is now available and has proven itself to be a trustworthy solution, which can securely and seamlessly integrate with your supply chain.
If that were to happen, you would not be receiving the product that you ordered. You might receive a tampered product and it is easy to determine if the item is a fraud. In any case, it is never too difficult to catch fraud.
Better Healthcare System
It is quite common for people in developing countries to suffer from health problems. One of the main reasons behind this is the lack of access and availability of quality healthcare services. As a result, people often visit doctors and healthcare specialists for diagnosis and treatment. The situation becomes even more challenging when patients are not able to get a clear idea of where they need to go, as they have to keep changing floors and wards until they find their specialist or doctor.
This also leads to complications for patients who need to work with their medical records, as those records are often stored in a variety of different places. Keeping a full medical record with all the information necessary to access it becomes close to impossible, as patient’s records can span through years, or even multiple doctors and treatment approaches.
Increase Business Efficiency
Blockchain is also known to increase your chance of success, as it gives you more opportunities to earn money. Big companies are increasingly embracing blockchain and implementing its use into their business strategy. This is because it can help maximize the efficiency of their business, connect people that were previously unconnected, and provide high-quality services.
Below, we will explore the potential of Blockchain and its general use-cases. This is by no means an exhaustive list, but it should be a good example of how the Blockchain revolution will inevitably change the world as we know it.
When Will Blockchain Take Over?
This is an often asked question that many people have been struggling to answer. Some say when there’s more awareness and understanding of the benefits of blockchain technology, while others have a more grounded belief that when it becomes easier to use and access.
The financial sector is the first of many sectors that will see the changes brought by blockchain technology. With major problems in the financial sector right now and an inability to solve them on their own and with the current status quo, blockchain is set to be the perfect catalyst for change and provide necessary solutions that can bring peace to this troubled industry.
Blockchain has the potential to transform the way money flows through institutions and is also traded among traders. With a decentralized ledger, transactions are recorded across a peer-to-peer network as opposed to one central location. This allows for greater transparency and security, as well as increased efficiency in financial systems that can potentially save billions of dollars a year.
In fact, blockchain has the potential to revolutionize almost every industry out there. It can create a more efficient and prosperous world where people can connect with each other without the need for intermediaries.
How Blockchain Will Change the Financial World?
The financial world will be revolutionized with the help of blockchain technology. Blockchain platforms have the potential to change the global economy quite easily.
The Ethereum blockchain, for example, has the ability to automate, secure, and operate an efficient process in the finance and banking sector. It will also optimize cost and digitize securities and other assets without increasing the cost required to manage them. This blockchain technology is already being implemented by major sectors within the finance industry such as capital markets, loans, payments, regulatory compliance, and trade processing.
How Blockchain Will Change Real Estate?
Have you ever tried to buy a home recently? If so, then you would be aware of how much time and effort is needed to complete the purchase. Any real estate transaction can take any amount of time between a few weeks and months, as this is due to the less efficient process that is used.
The large scale of real estate makes it very difficult for buyers and sellers to coordinate and manage their properties.
With blockchains, the real estate industry has seen a radical change in recent years. Most notably, automation has been able to inject a more efficient process into the industry, as well as reduce costs and help with tokenization. In this way, blockchains are being called a “massive boost” to the global real estate industry.
How Blockchain Will Change HealthCare?
The last sector that we are going to discuss is the HealthCare industry. Right now, the healthcare industry can also benefit from the adoption of Blockchain technology. There are many pain points in the healthcare industry that could be solved with the help of Blockchain and cryptocurrency such as faster and more accurate payment systems, simplified administrative tasks, and improved processes for securing and distributing drugs.
For example, patients have always had to carry their documents with them. This can often lead to cases of wrong data input, such as a patient's medical history not being saved on the device they are using.
Another important aspect of the drug trade that needs to be addressed is drug traceability. Without a proper way to trace drugs, it is much easier for counterfeiting to occur and research is often hindered by the lack of an accessible database that tracks patients’ information.
Will Blockchain Succeed?
Blockchain technology has been around for quite some time and it has opened up many doors to people that were previously closed. It is a difficult journey to make blockchain a truly global phenomenon, but the promise of blockchain is just as great as any other new technological advancement in the world today.
When the internet first came to life, it caused a huge stir and was heralded as the single most revolutionary invention of all time. It did change how we connect, but it took some time to evolve and improve.
Artificial Intelligence was also hailed as the next-generation technology that could change the world. The point I am trying to make is that almost every new technology shows promise as they are better than the previous ones in one way or another. Only time will tell how blockchain will impact society.
For now, everyone is on the same page. Blockchain is still in its infancy stage and as such, everyone is eagerly waiting to see what its potential future is. One thing that is for sure, blockchain has the potential to change the world around us.
Conclusion
If you think that blockchain cannot change the world, then you are not alone. There are many experts who think blockchain is not enough to alter the course of actions in this world. However, recent findings do predict that blockchain will succeed in doing so as it has become a major topic of interest for governments and corporations who have recognized its potential to drastically reduce transaction costs and friction within their respective sectors.
As you can see, blockchain is already having a tremendous impact on our world, and the potential for this technology to change the future of society is only barely being tapped. We have also managed to foresee some of the ways in which it can change our society for the better.
If you’re a novice who is just getting started with blockchain technology and wants to learn more, you need to check out our free course on the subject. In the free course, you will learn the basics of blockchain technology and how it works so that you can better understand how it applies to your profession or hobby.