You may have heard of blockchain networks in the crypto world gaining popularity in the last few years. But what are blockchain networks, and how can we utilize this technology beyond the cryptocurrency exchange world? Here are five ways blockchain technology is helping transform various industries.
What is Blockchain?
Blockchain networks are immutable, encrypted ledgers for digital exchange. Blockchain networks cannot be altered, and all transactions are recorded and accessible for posterity. Blockchain networks track every stage of an asset’s exchange, encrypt the data for security, and record the transaction on the network. Networks like these are used to buy, sell and trade cryptocurrencies and other digital assets such as NFTs.
Blockchain technology has already become a popular way to store transaction and contract data. Keeping your business data on a blockchain network offers more transparency and reduces the risk of tampering. Business deals and transactions carry less risk and are easily accessible on a blockchain network. When business is done through a blockchain network, the data is encrypted to protect each user, but the transaction is still recorded publicly, meaning it’s always clear where deals occur.
Digital artists have always struggled with issues of provenance and the reliable sale of their digital works. Today, blockchain networks and NFTs are helping solve these issues by creating a reliable framework for exchanging digital intellectual property. Digital artists can mint their art into an NFT and sell or auction it on an NFT marketplace. NFTs are bought and sold using cryptocurrency, so if you own Solana coin, you will buy on a Solana NFT marketplace such as that hosted by FTX. Some NFTs have sold for millions of dollars online, and with the benefits of blockchain, the artists will never lose credit, and the ownership of the work will never be in question.
The benefits of blockchain tech for business go beyond deals and into the realm of manufacturing. Companies that integrate blockchain tech to track their products can see every hand the product went through, from collecting raw materials, manufacturing, and finally being sold to the consumer. The blockchain network holds businesses accountable to their production standards and allows consumers to make more informed decisions about the products they purchase.
Due to the encrypted nature of blockchain networks, your user data is always protected. Blockchain technology is helping to transform the world of healthcare by recording medical and health records securely online. Instead of having to ask the hospital for records or keeping them yourself, storing your medical history on a blockchain network will mean it’s always accessible and follows you wherever you go. Blockchain for the healthcare industry can save money in admin and oversight, and it can even save lives by making medical care more accessible.
Record Keeping and Economic Accessibility
A significant way blockchain technology can influence the world is by creating a decentralized system for exchange. Blockchain networks are decentralized, which means they don’t rely on or work for any state or government. Some crypto experts are trying to bring the internet and blockchain to areas that don’t have reliable economies. If blockchain tech is introduced to these areas, people would have the ability to get digital IDs that hold their records, contracts, and personal data. Hence, they are not entirely misplaced in the event of a natural or political disaster.
These are just a few of blockchain technology’s current and future applications. Understanding blockchain isn’t as hard as you might think, and the broad applications of this technology are only starting to be fully understood.