Blockchain is a new technology and various businesses are exploring the possibilities through which blockchain can add value in our day-to-day life. Developers have developed many applications, which are changing the way we traditionally have been transacting. Followings are the few examples of Blockchain application, which depict how blockchain can impact businesses around the world;
EXAMPLES OF BLOCKCHAIN APPLICATION
CRYPTOCURRENCIES
For many early users, cryptocurrencies are the first-hand introduction to the blockchain technology. The cryptocurrencies are the first consumer level applications of blockchain.
However, the development of Bitcoin was not the first attempt to create a true disintermediated, safe and secure digital currency. However, all the prior attempts were failed as none of these were able to provide the required solution of the problem of “double spending”.
Double spending, is a term which means that the same digital decentralized currency note/ token can be duplicated/ reproduced and spent many times. The ability of blockchain to record transactions on a block and chain each block through hard coded cryptographic methodology solved the problem of double spending.
For example, if Mr. A mined or purchased 10 Bitcoins (BTC), this transaction will get recorded on a block and eventually will be converted into a crypto code of next block. Similarly, spending of each or even partial BTC by Mr. A will be intimated to all the nodes on a bitcoin network so everyone on a network will have a record of each Bitcoin being traded. The group consciousness will prevent any one to spend a single note/ token more than one time.
In the case of crypto currencies, the blockchain is simply a digital decentralized ledger which keeps the immutable record of ownership of all currency units being traded and transfer from each participant to the other.
However, it is important to understand that cryptocurrencies are just another application of blockchain. Just as internet is far more than an E-mail, Blockchain is not just a digital currency.
SMART CONTRACTS
The immutable record keeping mechanism of Blockchain solutions have made it an ideal platform for development of event tracking applications. In this way any record entered, can be marked as announcement and can trigger the other related actionable event e.g., transaction through chain code/ Smart Contracts (a software programmed to respond certain events). Thus, by practicing smart contracts, Blockchain can be used as automated workflow/BPM and Blockchain could do more than just data storage. Business processes could be modeled and automated on the same platform that immutable and secure transaction data lived on.
TOKENIZATION
The Blockchain, as reliable platform for development of digital currencies, have enabled the way to allow anyone to own, trade, track and maintain incredible small pieces/ frictions of real-world assets. This tokenization of ownership for real asset has opened the horizons for many new business models.
FACTORS TO CONSIDERS WHILE ADOPTING BLOCKCHAIN
It is important to understand that this technology is yet on its beginning stages and we are just starting to explore the possibilities and wonders blockchain can brings into our lives. Like any other technology, the benefits of blockchain comes at a cost.
Followings are the factors which must be considered while looking for a solution through using this cutting-edge technology;
· The extensive reliance over cryptography and frequent peer to peer validation requires consumption of energy and drive inefficiency.
· Blockchain is a new technology which is not yet fully adopted.
· It is continuously evolving, means a recent developed solution may become absolute in coming days.
· Further, not much trained human resource is available for operating this technology and the already available resources are costly.
· The blockchain technology is not widely available yet, therefore, there are very few established standard and best practices available which are also evolving with the technology itself.
· The core characteristic of blockchain is its establishment over decentralized network. This means there is no central single authority to regulate it and further this technology does not follow any establish rules and regulations.
· Many platforms and tools based on this technology are in preproduction phases yet and may not deal with the heavy application development.
Despite a few drawbacks, Blockchain is still considered as revolutionary technology and is considered what the internet was in the nineties. The effects of blockchain are similar to the effects the internet brought in those times. We don’t fully understand this technology yet and therefore, cannot fully utilize its potential.
