Blockchain technology is getting a lot of attention, especially Bitcoin (BTC), which has taken the world by storm. This network has changed the way we communicate online. Also, it has provided many opportunities for people to transact online and trust the digital world.

 

So, it's essential to ask the question: How do we know if this type of network technology is good? Let's look at what blockchain is and how we can determine if this network is working properly.

 

What is blockchain?

Blockchains work on distributed ledger technology. This means that a record of all transactions on the network is publicly available and distributed to network users. Thus, anyone can view and check whether the transaction was valid.

 

Each network will be different in its features and functions. Ethereum, for example, introduced us to smart contracts, digital contracts that automatically execute when transaction conditions are met.

 

Network speed is also an important factor in its efficiency. For example, at the beginning of BTC's existence, a transaction took some time to complete. Because its infrastructure was not yet ready to support the high demand. Thus, even today, the priority was to provide the user with the opportunity to buy Bitcoin safely.

Blockchain is changing the world for the better

 

Blockchain has been out of the cryptocurrency community for a long time. It is being successfully used more widely in various sectors of the economy.

 

Somewhere it speeds up traditional business processes. Somewhere it saves billions of dollars by optimizing it

 

Banking and financial sector

International financial institutions are still dealing with cryptocurrencies with caution. But blockchain technology is being used very actively. Its main areas of application in the world of finance are:

●      Simplification and acceleration of bureaucratic procedures,

●      Reduction of international transaction costs, and

●      Secure storage of information.

 

Moreover, we are no longer talking about experiments, but large-scale commercial use of the technology. For example, Depository Trust has been using blockchain technology in its operations for over three years. It helps process more than 90 million transaction data worth more than $45 billion every day.

 

Logistics and transport

Impressive economic results have been achieved through the use of blockchain in logistics. It would seem that it would be difficult to change something in such a conservative area, besides, it was possible. Distributed registry technology makes logistics more transparent. It allows you to track cargo along the entire route and optimizes the loading of transport and warehouse complexes.

 

Businesses can quickly realize the benefits that blockchain brings to them. Moreover, the greater the volume of vehicles, the greater the financial impact. For example, one of the leaders of the international logistics market, the Danish company Maersk, has been successfully using the TradeLens platform based on blockchain technology since 2018.

 

Tourism

The hospitality sector is another area of the economy. Blockchain brings business and customer relationships to a whole new level here.

 

One of the most interesting projects in this area is the GuestChain platform. It offers a new business model of interaction (without mediation) between tourists and hoteliers. It has the potential to change the entire market. The innovativeness of the project lies in the tokenization of the number of housing facilities.

 

Each day of stay in each specific room corresponds to one NFT. By purchasing, tourists guarantee their future accommodation on the one hand while providing hoteliers with a stable and predictable cash flow on the other.

 

Gamedev

In recent years, the gaming industry has been one of the main engines of the entire cryptocurrency community. At the peak of the pandemic, only big pharma shares rose faster than gaming companies.

 

The severity of the economic crisis slowed this growth somewhat but did not stop it. And game worlds become trading spaces with their own internal and external markets, currencies, and funds in constant transit to and from the game world. Blockchain and smart contracts gave GameDev everything he needed.

 

Healthcare

The use of blockchain technology in medicine and healthcare is evolving in three directions. The first is to track the drug supply chain (subject to product storage conditions).

 

The second is the digitization of patient data arrays (external patient records). So that any doctor anywhere in the world can access the information he needs about any patient.

 

The third is the introduction of smart contracts into the work of insurance companies which greatly simplifies and virtually automates the process of registering and filing insurance claims. Good results in this field have been achieved by the PokitDok blockchain platform, which has more than 10 years of history.

 

Public administration

Blockchain shows its effectiveness where there are databases and the need to secure the information contained in them. There are many such databases and information in the field of public administration.

 

IBM has been a leading developer of blockchain solutions for state-level database administration for several years.

 

Electoral system

Blockchain has been able to gain state-level recognition in organizing and conducting various types of voting. The mechanics of the process are extremely simple. For each expression of will, a unique smart contract is created. Here clear conditions are laid down for the candidate's victory. Each voter's vote corresponds to a token, which is considered by the smart contract.

 

There are many examples of successful applications of blockchain voting. Since 2020, they have been practiced successfully.

 

Good deed

There is a lot of money in the charity industry. Every year, citizens and businesses donate billions of dollars to help those in need.

 

It's just not all the money and it doesn't reach the addressees immediately. Classical charities are highly inefficient from a financial perspective, incur high administrative costs, and are heavily bureaucratic in their operations. In this case, it is considered very normal if a charitable foundation spends 30-40 percent of the grant on self-financing and transfers the money as needed after a few months delay.

 

The use of blockchain technology brings a charity to a qualitatively new level of transparency and efficiency. Instant transfers around the world bring aid to those who really need it, and thanks to smart contracts, this aid becomes a real goal.

 

There are several large integrator companies in the world that create customized blockchain solutions for charities. One of the most famous is the Human Care Foundation (HCF).

 

Copyright

In the era of complete digitalization, copyright issues acquire a new meaning. Technical ease of borrowing leads to permission. Classical legal institutions are not able to provide reliable protection of copyright.

 

Because of this, they are very conservative and clumsy, which cannot be said about blockchain. From a technical point of view, it is excellent for performing a security function. Once entered into the register, information about the possession of a particular intellectual property cannot be changed. And, no less important, information about this can be easily checked at any time with Internet access.

 

At the moment, there are several successfully developing blockchain projects in terms of copyright protection. But the most interesting are PatentBox and Proof of Existence.

 

Future with blockchain networks

Networks are paving the way for a future where decentralized finance will become the norm. At its core, a good network is one that serves a specific purpose. Technology developers can come up with as many innovations as they want. But most importantly, they can continue to provide this service.

 

It may take some time to fully understand the intricacies of networks because it is a very technical world. The secret is to start small. Searching is something you can do at your own pace. The important thing is that you make an informed decision with confidence.