A lot of businesses use cases which need to be solved with the help of ledger technology. In situations where business applications need smooth processing, this technology provides the necessary break. This is possible if we use blockchain technology in the form of an application platform.
Even though Bitcoin is only a currency and payment system its use is not just limited to payment transactions, users, balances or accounts.
Blockchain technology to be true is a series of transactions which are secured by a scripting language and uses cryptographic methods to get them executed.
This means that blockchain is basically a platform which can solve many other tasks apart from cryptocurrencies using a scripting language.
This unique property of blockchain leads to smart contracts which are also named as Ethereum. Using this technology developer is able to create cryptocurrencies and applications with the help of Turing complete language. This enables the businesses to be able to define their own rules and policies.
The distributed ledger technology that is used in Blockchain also provides solutions which help in building a high level of trust in business transactions. By using the technology the costs are reduced and businesses are able to build and even maintain infrastructure which provides results with lower expenditure.
Blockchain has the ability to quickly process transactions as it does not use any centralized infrastructure. We all know that there cannot be any foolproof system which is totally protected from cyber-attacks. However because of the distributed nature of blockchain the level of trust is definitely higher.
The fact that blockchain is readily available and unchangeable provides a transparency which is difficult to match. This allows the users to query any type of transactions on a real-time basis.
Using blockchain for cryptocurrency
Ever since its inception in 2009 Bitcoin has gained popularity among all the business owners. This is because Bitcoin is actually the first implementation of any cryptocurrency running on a distributed ledger technology.
Actually, the Bitcoin consensus algorithm is based upon proof of work (PoW). PoW involves the collection of transactions into blocks and can be added to blockchain only after the bitcoin miner is able to solve a cryptographic challenge. This challenge is not easy to be solved hence ensuring a neutral result.
There are other forms of proofs that have been incorporated with other solutions like a proof of partnership in the Ethereum and proof of time elapsed which has been introduced by Intel.
A major benefit that blockchain is able to provide is that all transfers are completed within seconds, despite any geographical barriers and that too with reduced fees and intervention of third parties like banks.
At present countries like USA and Venezuela are religiously investing money and other resources in research which is aimed at creating own cryptocurrency. Despite getting so much success the flaws in its design have limited the usage and global adoption of Bitcoins and other altcoins.
Expansion of cryptocurrency use will need overcoming all the government regulations and barriers and protect self from problems like money laundering, unlawful trades, lack of acceptance and volatility.
Using blockchain for digital identity
Every community or corporation feels the need to have one centralized source of identities. Having a decentralized identity system allows you to find one source where every data elements like user credentials are provided in the system itself.
Many companies like Microsoft and IBM are focussing on this model. Users here are getting more control as they share their identity only with reputed parties. No one gets the facility to tamper with the user identities.
Users thus get the benefit of better accessibility, data privacy, and control. On the other hand, enterprises are able to reduce identity management cost, make monitoring process easy and thereby improve customer service as well as efficiency.
Blockchain for real estate
In blockchain, there are smart contracts, programs which execute if you are able to meet certain criteria. These smart contracts were invented in 1990’s by Nick Szabo. Further Ethereum incorporated them into blockchain and cryptocurrencies.
A smart contract involves parties agreeing to the sequence of execution paths basis the events that have occurred. This benefit can be widely used by industries such as real estate. Basically smart contracts work in any system which requires dealing between seller and buyer.
Real estate involves dealings of many kinds and mostly between parties, individuals, owners, lenders, investors and service providers. As of now, the centralized systems can cause the transactions between them to become erratic.
This is because of many reasons like distrust, the possibility of fraud and lack of information about how real estate actually works. Blockchain technology provides an efficient search engine where you can conveniently look for the properties on sale without worrying about the above issues.
So it is clear that blockchain technology would continue to provide many opportunities to various applications. With the further growth, we would see the technology expanding its horizons further.