The roller-coaster that is the cryptocurrency market is currently on another downward trend, following months of unbelievable growth. While this has been welcomed by quite a few stakeholders as bringing the price of tokens back to a more realistic level, it is interesting to note that the prospects of the blockchain industry have not suffered as a result. Blockchain is the technology that underpins cryptocurrencies, and has always been seen as having a lot more potential than the tokens themselves, due to its ability to be used across a wide variety of sectors, businesses and situations to solve multiple problems. The impact of the pandemic has also shown the value of having decentralized systems and digital solutions for problems, and these are all areas where blockchain technology can provide a lot of help.
The biggest advantage of using blockchain is that data is recorded securely across several computers, making it impossible to change or tamper, and therefore providing secure and accurate records of anything, from transactions to shipments to online actions – any data that needs to be stored safely. It is also extremely difficult to hack, since the data is stored across multiple devices, and therefore all of those devices would need to be compromised for the network to fail. This decentralization is a central pillar behind the creation of blockchain technology, and it is one of its most important aspects. Blockchain has already been successfully used in the online gambling industry, where the blockchain based Ethereum casino Winz.io is the perfect example of a site which uses blockchain to secure its games and transactions, while also providing users with the option of placing bets via cryptocurrencies. This has proved to be a game-changer for the online gambling sector, and illustrates the impact that blockchain can have if used correctly and intelligently.
Therefore, this has a lot of potential for use with the internet of things (IoT), which is the increasing network of physical devices and appliances that are connected to each other, such as phones, watches, cars, household appliances and so on. The amount of data being stored and transferred across these devices is only increasing as more and more people use such devices, and therefore there is a need to provide secure storage for this information, much of which is sensitive personal information about users. Such devices are also easy to target by hackers due to security vulnerabilities, which makes it even more important to have a robust system in place to store information. Blockchain technology can therefore be used in this manner, while also ensuring that transactions are securely verified. They also provide transparency with regard to the identity of the person making transactions, as well as access levels and records. Additionally, costs are reduced since a large part of these processes are now automated, while also increasing speed at the same time. Blockchain can therefore help increase efficiency by a huge margin in these sectors.
One of the examples where blockchain has immediate application is in supply chain management, where smart contracts can be used to ensure quality assurance. This is especially true in the case of perishable goods, where location and temperature data can be tracked and captured at regular intervals, allowing for products that have violated the conditions of the contract to be rejected. Another similar example is one where blockchain is used to track fleets of vehicles, with various parameters being checked and verified.
Of course, there are challenges to overcome when looking to incorporate these into existing systems, but the potential reward is vast, and can have a transformative impact on the entire sector.