Blockchain in the economy and other fields: application examples

In recent years, blockchain-based technologies have become widespread. The first practical way to use them was the creation of the Bitcoin cryptocurrency. The invention of the blockchain was driven by the need to conduct secure transactions in a low-trust environment.

The technology, invented by a person or a group of persons hiding under the pseudonym Satoshi Nakamoto, has demonstrated properties that can improve many areas.

The use of blockchain is not limited to the financial sector and cryptocurrencies, but covers a wide range of different aspects of human activity.

Content

1. Possibilities of blockchain technology.
2. Advantages and disadvantages of blockchain technology.
3. Ways of practical application of blockchain in people's lives.
4. Conclusion.

Possibilities of blockchain technology

Blockchain technologies arose due to the integration of the latest achievements in cryptography, programming, as well as the development of computer technology and communication networks. Their technical aspects can be studied in this article.

Usage of blockchain provides the following opportunities:

• Bring the financial and economic system to a new level, as well as other areas in which it is necessary to confirm the truth of the information provided.
• Increase the security of contractual legal relations.
• Improve and raise to a new level of information storage technology.
• Optimize relations between producers and consumers, eliminate unnecessary intermediaries, reduce costs in exchange and in trade relations.
• Safely and reliably maintain public and private registers, keep records of payments, taxes.
• Ensure fair distribution of resources, as well as other useful projects.

Advantages and disadvantages of blockchain technology

Blockchain technologies have the following advantages:

• Decentralization of various spheres of human activity becomes possible.
• The ability to securely store information is improved by using identical databases distributed across multiple computers.
• The need for intermediaries, which reduce the efficiency of functioning in any area and uselessly consume resources, is reduced.

At the same time, blockchain has a number of disadvantages, including:

• An insufficiently developed regulatory framework, which makes it difficult for the mass use of cryptocurrencies and the conduct of associated fundraising campaigns.
• The practical implementation of the blockchain is not yet perfect, so many platforms have low performance and insufficient energy efficiency.
• The use of a large number of computers for parallel storage of the same information (blockchain) increases security, but leads to irrational use of electricity, computing resources, and space on information storage media.
• There are many scammers in the cryptocurrency market using blockchain technologies that discredit their credibility.
• Many do not understand the benefits and value of innovative changes that new technologies bring.

Ways of practical application of blockchain in people's lives

The most obvious place to apply distributed ledger technology and cryptographically interconnected data blocks is the financial and economic sphere. This is confirmed by the rapid growth of cryptocurrencies and the presence of two thousand different crypto assets.

The use of blockchain in the economy allows for fast and reliable financial transactions on decentralized platforms. At the same time, the history of users and related transactions is securely stored in the general registry. This allows you to increase security, minimize the risk of fraud, reduce transaction costs and intermediary services.

The use of smart contracts linked to the blockchain makes it possible to conduct international real estate transactions very quickly, which a few years ago would have required a lot of time and the involvement of expensive intermediaries (a similar project is being implemented by Propy).

As practical examples of the use of decentralized distributed ledger technologies, the following can be given:

1. Blockchain in the banking system, in addition to conducting financial transactions, allows you to store customer databases, as well as quickly exchange information about them with other banks using digital user identifiers. This increases the level of protection against credit fraud, and also makes it easier for trustworthy users to access financial services when changing their place of residence without disclosing personal information about the individual. There are already decentralized credit risk assessment and rating platforms such as Bloom and LinkEye.
2. Blockchain in business - many platforms are used that make it possible to guarantee the fulfillment of the conditions of contracts concluded between business partners, to raise funds for the development of projects (crowdfunding) - Ethereum, Lisk, Neo, EOS, Monet.network, ICON, Aergo.
3. The developers of Hive Project, Populous make it easier for small and medium businesses to access liquidity by creating an alternative mechanism for processing invoices.
4. Trading in digitized assets and property rights is implemented in the OneRoot Network, Bankex, Polymath network, Omni projects.
5. Blockchain in logistics makes it possible to avoid falsification of documents and allows you to track the movement of any product along the chain from the manufacturer to the buyer. An example is the Ambrosus project for the supply of pharmaceutical products and food products.
6. Blockchain in insurance - access to the services of insurance companies without intermediaries, which significantly reduces the cost of their cost, eliminates possible fraud associated with forgery or loss of documents.
7. Blockchain in advertising - elimination of fraud, bots, malicious ads, trackers, fictitious network addresses - Brave, Adshares, AdEx, AdToken, Adzcoin.
8. Blockchain in medicine provides instant access to patient information stored in an open registry by identifier and makes it possible to quickly provide assistance without additional analyzes and studies that require a lot of time and money.
9. Blockchain in the energy sector - creation of an independent market for electricity supply SunContract.
10. Blockchain in education - providing access to quality education at an affordable price (ODEM), a global electronic encyclopedia that encourages users to participate in its development (Lunyr).
11. Global Cloud Computing is a Polish Golem project.
12. The use of space technology for business, the industrialization of space and the development of space technology - SpaceChain (a decentralized space agency that already has a satellite in low Earth orbit).
13. Identity verification and voting - Radium.
14. Sharing audio and video 3D content - Cappasity.
15. Storage and exchange of confidential information - Darcrus.
16. Platform for job search and job search - StormX.
17. Increasing the liquidity of undervalued assets due to their digitization - Bankex, Polymath network.
18. Decentralized data storage at below corporate prices - Sia Storage, Storj.
19. Decentralized content trading platform with reliable protection against plagiarism and fraud thanks to the use of smart contracts and the inability to change records in block chains - Spectre.Ai Dividend Token.
20. Integration of virtual private networks with blockchain technologies, decentralized chat and voice exchange - Sentinel.
21. Secure financing of infrastructure projects - XinFin Network.
22. Issuance of domain names to create a decentralized global network - Namecoin.
23. Safe Use of Smart Weapons - Triggers (Blocksafe consortium).
24. Conducting decentralized competitions in networked computer games and e-sports - MobileGo.
25. Trade in copyrighted memes, pictures - Pepe Cash, CryptoKitties.
26. Creation of fair lotteries, gambling and betting platforms.
27. Creation of a decentralized mobile network, crowdsourcing base stations, WiFi sharing - QLC Chain.

Conclusion

Despite the skepticism of some people, the blockchain has already thoroughly entered the life of mankind, and it is impossible to ignore it. Some call its appearance and related changes the new economic system.

Time will tell whether this is true or not, but it is already obvious that the blockchain allows you to streamline many areas of human life and improves its quality.