Applications of Blockchain; from digital identity to voting

 

Applications of Blockchain

Blockchain was first used in Bitcoin, but now this technology can have many applications in our real world. In general, using the blockchain can greatly enhance the privacy, credibility, and security of information, and make us even more confident. In this post, we will explain what a blockchain can do and how it can be used in real life.

Although many scholars and experts see the blockchain as a great revolution that destroys all traditional processes, some others believe that the true meaning of the blockchain can only be applied to digital currencies such as Bitcoin and Atrium, and new concepts such as the block. Private folders and corporate blockchains have no real use and can be easily bypassed. In this regard, you can read this article: Eight areas in which the blockchain has not yet succeeded

However, today many companies and organizations are working on blockchain applications in order to provide better services to customers and community members and not be left out of future developments.

On the other hand, to use new applications of blockchain, it is not always necessary to build a completely new blockchain. On open blockchains such as Bitcoin, Atrium and ‌, various projects can be implemented that will eventually solve one of the problems of individuals.

 

What blockchain is good for?

Although blockchain is a new concept and many aspects of it are still unclear, in general, using a blockchain can do the following:

Record and store records and information

Any information and data can be stored securely and distributed on a blockchain. For example, the Bitcoin blockchain stores transaction information, and anyone who connects to it receives a copy of this information. Using hashing, encryption, and data distribution, no one will be able to delete or change the information recorded on the blockchain. Therefore, we can say that the data recorded on the blockchain are immutable. For more information, see “What is a Distribution Office?”, “What is a Blockchain?” And “How does the Blockchain work?” Read.

In general, data can be stored on a blockchain in three ways:

  • Unencrypted data: All participants in a blockchain can see the data very clearly.
  • Encrypted data: This data is encrypted and only those who have the decryption keys will be able to view it. In this way, only certain people who have the decryption key can see the data clearly.
  • Hashed data: This data is converted to a hash with a special function to prove that there will be no fraud.

Creating a digital identity

As in the article “How does the Blockchain work?” We explained that in this technology, identity could be determined using cryptographic keys. For example, how does a bitcoin network find out how much bitcoin a person has? Alternatively, how do you make sure the sender has enough bitcoins to send to the recipient? Bitcoin blockchain uses cryptographic keys for this purpose. In blockchain, digital identity can be determined using the public key and the private key.

The private key and the public key are both a text string of letters and numbers that can be used as a member of the blockchain. Think of a private key as a password that no one but yourself should have.

However, how can the authenticity of a private key be verified without disclosing it? The public key comes in handy here. Using a public key, it can be verified without having a private key. The combination of private key and public key forms a new concept called “digital signature”, which is used like traditional signatures, except that it cannot be forged.

In the blockchain, any natural or legal person can act as a pair of public and private keys.

Serve as a platform

Digital currencies were the first platforms to use the blockchain for development. Today, instead of building a platform for the exchange of digital currencies, a platform for smart contracts can be designed.

A smart contract is a code that is activated on the blockchain to check and execute the terms of an agreement between the two parties without the need for intermediaries.

Once a smart contract is executed on a free blockchain like Atrium, it can no longer be stopped and no one can stop it. With smart contracts, you can create programs and projects that will continue to work forever without any intermediaries and disability. These programs are also called Dapp programs.

Blockchain applications in the real world

As mentioned above, the blockchain is a nascent concept and still has a long way to go to reach mainstream and widespread use, but if the infrastructure is in place, it can be hoped for. So far, several large organizations and companies have been able to use this technology in the real world and greatly reduce the need for trust in their processes.

Here are some of the hundreds of uses for the blockchain in the real world:

Elections and voting

One of the problems that exists in human societies today is the lack of transparency in voting and elections, which increases the risk of fraud and violation of individual rights. Elections and voting are among the most important applications for the blockchain. Using the blockchain, a transparent and decentralized election can be held in which votes are counted automatically and there is no possibility of fraud. However, due to the lack of proper infrastructure, this technology has not yet been used for large-scale voting (such as important political elections). In several developed countries, such as South Korea and the United States, several small elections using the blockchain were recently held on a trial basis, and participants were able to easily vote on the blockchain using their mobile phones.

Identity

As we said, anything can be recorded on the blockchain headquarters and the data can even be identity information. This greatly reduces the risk of hacking and data loss. Recently, the mayor of the Swiss city of Zug announced a test of the blockchain to register citizens’ identities and provide citizenship IDs so that people can test their identities safely and securely.

Supply chain and interception

Is this food healthy? Is this product made of high quality raw materials? Is this product original? These are issues that can be addressed with the Blockchain. This technology can be used to track and measure the supply chain. The steps of harvesting and producing the product from the beginning to the moment of reaching the customer are recorded on the blockchain and the customer can be sure of the authenticity and quality of the product by scanning a QR code. Today, many companies, especially in the food industry, use the blockchain to track their products so that both they and their customers can be comfortable with the quality of the product.

Health and science

Using blockchain, medical and research data can be recorded and shared with other researchers and physicians. The security and reliability of research and medical data has always been one of the major problems in the field of health and science. Centralized databases carry many security risks. It has also happened many times that several teams from different parts of the world have worked on the same subject at the same time, without their souls being aware of it. Blockchain can be a waste of time and energy.

Intellectual Property

A work, especially a file type (music, photo, movie, etc.) after publishing on the Internet is at high risk of copyright infringement, which causes great harm to the owner of the work. Blockchain has a solution to this problem, and it can be used to register the ownership of a work internationally, or by using smart contracts to use it to set a series of special conditions, such as paying a price with a specific token. Today, many projects are working for this purpose.

Tokenize assets

With Blockchain, assets can be converted into tokens and presented as a transferable digital asset. For example, a house can be converted into thousands of tokens and sold at the applicants’ budget so that many people (even from other countries) can purchase the house. Of course, there are many legal problems for this application of the Blockchain, but with the provision of infrastructure, we can hope to achieve such a goal.

Decentralized organizations and institutions

With the blockchain, just like a society or an organization, it is possible to create a kind of governance for a system so that everyone can share in the promotion of that system in relation to their shares and powers. With the blockchain, a kind of healthy democracy can be established in small and large societies. The debate over decentralized governance has long been debated in the world’s top universities and prestigious academic circles.

These were just some of the uses of the blockchain. Remember that wherever a database or data-sharing system was needed, blockchain could be used to eliminate the need for trust.

Blockchain and the Internet of Things in the supply chain management

Blockchain-based supply chain management system is set up in a jointly distributed general ledger and records undeniable records of all data related to the status of transport, the status of trucking vehicles, the environmental conditions of warehouses and the like.

Now let us look at two applications of the blockchain in supply chain management:

Product origin

Both companies and consumers can track the entire product life cycle in the supply chain using Blockchain and IoT technologies. Blockchain is an accurate record of data in which all communications between IoT-enabled devices are stored in its history. Provides instant access to all product related information. For example, consider the fish you are eating. With this technology, you will know the date on which the fish was caught, recorded and then sold. A complete history of fish travel from the sea to your food container is at your disposal.

Smart contracts

The Blockchain and the Internet of Things work together to ensure the safety of cargo transportation, even in overseas transactions. This system regulates the communication of all parties to the transaction. In this way, the terms and conditions of the contract are written in the form of computer codes and financial transactions between all anonymous parties are carried out easily without any dispute.

Another advantage of blockchain and IoT technologies is the minimization of paperwork and office work. There are currently many intermediaries in the process of moving a container from one place to another. Because most companies still use traditional methods of doing business, there is still a need for paperwork. Blockchain and the Internet of Things allow companies to save time and money by eliminating paperwork and at the same time ensuring that data protection is better done across the ecosystem.

 

Decentralization with the blockchain

Because Blockchain is a decentralized distributed head office, there is no specific central authority or executive body to record data and transactions. Blockchain technology is based on an encryption algorithm that we can use to ensure the security of data and its immutability. Each block in the blockchain has a hash of the previous block, which indicates that none of the blocks can be changed or replaced.

The integration of Blockchain with the Internet of Things helps logistics companies deliver deliveries more quickly and easily, and optimizes the operating costs of various applications. An example of a blockchain-based logistics company is the IBM Food Trust, which uses blockchain technology to create transparency and accountability in the food supply chain. Therefore, adding autonomy and transparency to the logistics process leads to their safety and optimization.

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