Does blockchain technology have potential or just tech hype?

• Anshika Bhalla
• September 16, 2021

Blockchain technology was the core technology behind the hyped cryptocurrency Bitcoin (BTC). In 2008, it made headlines worldwide, and the news got really hyped. However, blockchain technology was explored gradually by experts. As a result, many industries slowly adapted the technology and released new projects which benefited sectors. Now, Blockchain has evolved far beyond bitcoin and is being tested, implemented, and utilized in a broad range of industries. 

This article talks about blockchain technology and what potential it serves the world? Also, we will cover the essential points for helping individuals gain the best blockchain technology training and certifications. 

Table of content

• Overview of Blockchain
• Benefits of Blockchain 
• Unlocking the potential of blockchain
• Conclusion 

Overview of Blockchain

To begin with, let’s have some basic knowledge about blockchain. Blockchain is a type of database which differs from the traditional database when it comes to storing information. In blockchain technology, data is stored in the form of blocks that are chained together in chronological order. In Bitcoin, blockchain has been the core technology, and it uses the decentralization network. This means, no single centralized authority is responsible for controlling the system or data. Instead, all users can collectively have control.  Blockchain has been most famous for being the distributed ledger for transactions. Initially, financial entities utilized blockchain technology but now industries like health care, retail, tourism, insurance, media & entertainment, etc. 

Benefits of Blockchain 

In the beginning, when blockchain was creating hype worldwide, some tech geeks and big technology companies were exploring the technology.  Blockchain technology has gained a reputation as it offers better security, traceability, transparency for data shared across the network. Due to this, the efficiency increased, and the cost is reduced. Therefore, blockchain technology offers various benefits that enhance the system’s speed, efficiency, and automation for businesses. 

The significant benefits of Blockchain technology are as follows: 

• Build Trust: With blockchain technology, businesses can create trust between different entities to get better financial deals concerning financial transactions, data sharing. Unlike traditional methods, blockchain does not require any intermediator to control the transactions, increasing the trust factor. Cryptocurrencies are an example of how blockchain develops trust between unknown users. 
• Increased Security:  As we know the data storage is essential and keeping it secure is more critical. Achieving the desired security standards is challenging. However, blockchain has enhanced the security levels of the systems by providing the end-to-end encryption of the transaction record. Also, it improves the immutability so that once the transaction is recorded, it cannot be altered or deleted. Moreover, the blockchain consensus algorithm keeps the frauds away and prevents hacking or any Unauthorised action.  As blockchain technology is based on a decentralized network, which means the data is stored across the computer network rather than a single server, this increases the system’s security.
  
• Transparency:  Before blockchain, organizations have to keep a separate database, and blockchain technology enables to record the data automatically and identically at multiple locations with the help of distributed ledger. This maintains transparency at the user and organization end. Due to this feature, blockchain technology has benefited the retail industry by creating better customers satisfaction.
  
• Traceability: Blockchain technology provides the benefit of better visibility and tracking of the transaction at every step. This enables to share the information directly with the customers. Also, it helps to recognize the fraud and counterfeiting occurring in the industry. Traceability offered by blockchain has benefited the companies dealing with the supply chain.   
  
• High Efficiency and Speed: Blockchain-based applications are more efficient and process transactions at high speed. Keeping the records traditional way is prone to human error, is time-consuming, also required central authority. At the same time, blockchain technology has overcome these issues and create a platform that can complete the transaction much faster with more efficiency. 
  
• Automation: Blockchain technology has created Smart contracts which perform automated transactions. Automation in blockchain achieves increased speed and efficiency for businesses.  Smart contracts reduce human intervention and also remove third-party validation for processing the transaction. As soon as the customer provides the necessary credentials or information for the transaction or claim, the transaction can be processed automatically at any time. 
  

Unlocking the Potential of Blockchain

Blockchain is a disruptive technology that is taking over many industries. It has a high potential to impact all the transaction-based and record-keeping processes. Also, several industries nowadays depend upon blockchain technology. 

Blockchain benefiting various Industries:

• Automotive

Blockchain has the ability to change mobility services and provide innovative techniques as it enables a secure network and excellent traceability for transactions. 

• Banking and financial services

Financial institutes utilize Blockchain technology to directly connect with the user without any centralized authority, which builds trust. Also, it increases customer satisfaction and user-friendliness in providing financial services. 

• Government

Public and nonprofitable agencies are adopting many blockchain-based technologies like smart contracts for maintaining public records and creating immutability for better security and accuracy which cannot be achieved without blockchain technology. 

• Healthcare

For increasing the quality of care in healthcare sectors, blockchain technology makes sure to build privacy and trusted relationships between patients and the management. By implementing blockchain technology, the recordkeeping of patients’ medical data can be controlled by the patients. 

• Retail and consumer goods

Blockchain technology offers transparency and traceability of consumer goods and items, which increases the product authenticity resulting in an excellent consumer experience.   

Other industries which are utilizing blockchain technology are telecommunication, travel and tourism, entertainment and media, etc. All these industries are implementing new projects blockchain technology for the long term because of its high potential in providing excellent solutions. 

Conclusion 

After talking about the benefits and applications of blockchain technology, it is understood that Blockchain is not here for the short term. Tech companies and other enterprises are investing in Blockchain, and according to experts, blockchain is highly recommended to be utilized where conventional database fails. Companies lacking visibility or are prone to corruption must include blockchain technology in their network system. Also, technologies like artificial intelligence, machine learning, and many more are also implementing and collaborating with blockchain technology. 

Experts believe that blockchain has the ability to transform businesses not immediately but definitely. Also, if you are interested to learn blockchain technology explore the best online blockchain certification and blockchain technology training sessions from the blockchain council.