Do blockchains only work with cryptocurrencies?

The blockchain technology will change the tech and IT sector in the coming years, much like the internet did in the 90s and early 2000s, "says John Zanni, CEO of Acronis. Technology based on blockchain has the potential to drive huge changes and grant new opportunities across industries

In the 21st century, blockchain technology has been known to have a major impact on various sectors, from financial to manufacturing and education, to transaction security. However, many people are unaware that the technology hails from the early 1990s. The idea of blockchain was introduced by Satashi nakamoto in 2008 when he published a paper describing the ways to handle and manage blockchains. The main purpose of blockchain is to eliminate double spending issues and also third parties' interference.

A growing number of companies are interested in blockchain technology for the convenience it offers. The pandemic has prompted a shift to digital platforms, making blockchain more important to ensure a safe and transparent transaction. Blockchain does not restrict just to bitcoin or Cryptocurrency it's been used in various other factors.

Let's understand the types of blockchain technology which is been used nowadays:

  • NFT marketplaces
  • Cross-border payment
  • Personal identity security
  • Cryptocurrency exchange
  • Voting mechanism

1.  NFT marketplaces - The term "NFT" stands for non-fungible token. At its core, the term refers to a special form of digital asset that relates ownership to items such as artwork, real estate, music, and videos. NFTs can be considered modern-day collectibles. They're bought and sold online, and represent a digital proof of ownership of any given item. NFTs are securely recorded on a blockchain. Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well. NFTs can only be owned by one person at a time. These tokens can be used to verify their ownership and transfer them between owners. They can also be used to store information about the owner or creator, this is the major advantage of Blockchain provides.

2.  Cross-border payments - Sending an international payment through established banking channels is a complex, multistep process that involves several intermediaries, This disruption is resolved by implementing a distributed ledger (Blockchain) that records every transaction. Once a transaction is recorded, the receiving party has access to the funds immediately - no middlemen, no delays, no unnecessary fees.

3.  Personal identity security -  The online sharing of personal information by people can put their identification documents into the wrong hands from different sources or methods that are unknown to them. While signing up on multiple online platforms, each time an individual uses a service, he or she has to create a unique username and password. It becomes too difficult to remember a combination of usernames and passwords. Blockchain-based payments are cost-effective, almost immediate, secure and transparent. Instead of paying transfer fees to multiple parties, using of blockchain individual has to pay single nominal fee.

4.  Cryptocurrency exchange - As digital currencies, cryptocurrency (for example, Bitcoin) uses blockchain technology to record and secure every transaction. Cryptocurrencies can be used as a form of payment for everything from small purchases like utility bills to larger purchases like cars and homes. When you buy an item, the money is digitally transferred using a digital wallet or trading platform, with the blockchain capturing the transaction and recording the new owner.

5.  Voting mechanism - There are several security problems inherent in voting systems like ballot box voting or electronic voting, including DDoS attacks, polling booth hijacking, vote alteration and manipulation, malware attacks, etc. In addition, there is a tremendous amount of paperwork, human resources, and time required. Using blockchain, voting process can be made more secure, transparent, immutable. To vote, a voter enters the necessary credentials. All of the data is then encrypted and sent as a transaction, which is then broadcast to every node in the network for verification, If network approves transaction, it is stored in a block and added to chain.

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