What Is Blockchain, The Technology Behind Cryptocurrencies And What Are Its Other Uses

Blockchain: What is this technology?

As its name suggests, blockchain is a Chain of blocks that contain encrypted information for each transaction on the Internet, basically, acts like a database It maintains a distributed, decentralized, synchronized and secure record of user information on any digital device.

One of the advantages of this technology is that it allows Any activity that is verifiable, transparent, and improbable, That is, it generates a unique and secure code for each action performed on the network.

Blockchain Uses Beyond Cryptocurrencies

Although the term is closely related to the use of cryptocurrencies, there are possibilities beyond crypto-asset trading.

According to chainlysisA global blockchain analysis platform, there are at least four uses and applications for this technology: DeFi and smart contracts, digital asset management, supply chain (logistics) and the public sector or digital governance.

Smart contract and DeFi system

in future, Blockchain systems could provide a cheaper, safer and more accessible alternative to the banking sector, or even converge with it as the central bank for digital currencies.,

Currently, its developers are striving to meet these specifications through greater accessibility, security, and customizability.

along with DeFi Developers working in a similar direction, but using a different approach that is based on creation of smart contracts that eliminates third party interference In other financial activities such as lending, derivatives trading and foreign exchange.

blockchain in supply chain

Integration of this technology into supply chains can Improve warehousing, delivery and inventory tracking,

According to a study by the consultancy DeloitteThere are four potential benefits of implementing blockchain in logistics management:

• Enhances traceability of the material supply chain to ensure regulatory compliance.
• Minimizes the damage caused by counterfeit and illegal sales.
• Improve visibility and compliance of outsourced manufacturing.
• Reduce paperwork and administrative costs.

On the other hand, the consulting firm proposes Other intangible benefits such as reputation, reliability and transparency in operations large companies, such as heroine You walmart,

However, the implementation of blockchain solutions in supply chains requires the cooperation of all stakeholders, which becomes an opportunity to rethink and reshape corporate relationships, thus creating a more collaborative ecosystem.

digital asset management

Although they are still exclusively associated with the art world, NFTs (like any other digital asset) have an intrinsic connection to blockchain technology.

Every time a crypto-asset is bought, traded or sold, it retains a permanent record that proves digital ownership., What sets NFTs apart from other digital assets is the possibility of cryptocurrencies giving monetary value to art or collectibles.

Although, Thanks to the implementation of Blockchain technology, when digital transactions are made, it is possible to track who has what.,

In this regard, from Chainalysis they indicate that As NFTs move beyond the images they representOwnership of an even wider range of digital assets (3D assets, video game items, music copyrights, and more) Could change the way businesses and creators make money,

In 2021 alone, users sent at least $44.2 billion in cryptocurrency ERC-721 and ERC-1155 contracts, two types of smart contracts Ethereum NFTs linked to markets and collections demonstrate a growing enthusiasm to explore this type of digital asset.

Public Sector, Blockchain and Digital Governance

Without a doubt, technology has enhanced the way people interact with each other in the digital world. In what sense, Blockchain provides a secure platform to validate every cryptocurrency transaction or exchange of information.,

according to experts world Bank, Governments of many countries have experimented with the use of this technology for various industries and services. Such as property registration, academic accreditation, health care, recruitment, food supply chain and identity management.

However, despite the potential of blockchain, tests and studies show that there is still a long way to go before significant government changes can be achieved.

Definitely, trust is a valuable resourceMust be earned over time and maintained diligently. As long as specific companies build and maintain this trust, we’ll see how Everyone can benefit from blockchain technology,