With the development and globalization of the cryptocurrency ecosystem, Blockchain Technology is now attracting more attention. To understand how the ecosystem works, we should first understand Blockchain Technology. Blockchain Technology provides distributed, transparent, immutable, and secure data structures. Fundamentally, blockchain creates an encrypted database that works based on peer-to-peer approval.
Although Blockchain Technology is associated with the launch of Bitcoin, its history predates the introduction of Bitcoin. Blockchain was first used in the early 1990s, when computer scientist Stuart Haber and physicist W. Scott Stornetta applied cryptographic techniques on blockchain as a way to protect digital data. Blockchain Technology, which has formed the basis of the cryptocurrency ecosystem, has started to appear in many areas.
Blockchain in Banking & Finance
Blockchain creates a useful and safe working environment for banking and finance thanks to its features such as transparency that allows all transactions on the network to be monitored, immutability that prevents data alteration, and secure data storage.
In April 2018, Banco Santander launched the world’s first blockchain-based money transfer service. The service, known as “Santander One Pay FX”, is used for international money transfers. Santander, a large commercial bank, enables its individual customers to benefit from more efficient and less costly international transfers thanks to Blockchain Technology. Blockchain Technology can be used to lower the cost of transfers by reducing the need for manual transactions.
Blockchain Technology can also regulate trade agreements and simplify processes between borders. It allows businesses to easily trade with each other across borders.
The highly secure nature of Blockchain Technology significantly reduces the possibility of human error and ensures the integrity of records, so it is beneficial to accounting and auditing fields. The data stored on the blockchain cannot be changed by any person or institution.
Moreover, the encryption feature, which is an essential part of Blockchain Technology, makes it extremely useful in the fight against money laundering. Blockchain Technology enables the successful implementation of Know Your Customer (KYC) procedures that businesses use to identify and verify their customers.
Blockchain in Healthcare
With modern technologies, the use of medical devices in the health sector has increased. Thanks to Blockchain Technology, medical devices can record data they obtain and store the medical history of each patient. As we have mentioned, these records will be protected with a prominent level of security, and patient confidentiality will be easily ensured. For example, a hospital in Cyprus has used a blockchain-based mobile application to verify COVID-19 vaccines. With the mobile application called E-Chert, vaccine certificates have been verified through VeChain’s blockchain “VeChainThor”.
Blockchain in Government
Governments are responsible for keeping records of each citizen’s date of birth and death, marital status, and property transfers. These records are usually kept digitally or on paper. With Blockchain Technology, such data can be recorded in an orderly manner, and citizens can easily access their personal data when necessary. Blockchain Technology can also be used to vote and count votes. With its secure data storage feature, Blockchain Technology can prevent irregularities or technical failures that may occur in the elections that determine the fate of nations.
For example, the Istanbul Metropolitan Municipality is working on “IBB Smartus Project”, which will ensure that all data related to the services that citizens receive from the municipality is stored securely thanks to Blockchain Technology.
Blockchain in the Military
In the military, Blockchain Technology can be used for storing and protecting confidential and critical information. Blockchain allows confidential data to be stored in a distributed and encrypted manner. Thus, it reduces the risk of cyber attacks frequently encountered in centralized systems.
Blockchain & Internet of Things (IoT)
Internet of Things (IoT) is a technology that allows every object to communicate with devices via internet connection. When Blockchain Technology cooperates with IoT:
- Supply chain: It can be possible to track the location of the goods at the time they are shipped and ensure that they remain within the specified conditions.
- Asset tracking: As an alternative to cloud solutions, assets and machines can be monitored to record activities and outputs.
Blockchain in Education
Many researchers think that Blockchain Technology can be used in the field of education. With Blockchain Technology, there may be more opportunities for lifelong education, educators can work more efficiently with smart contracts, and students' academic records can be stored on the blockchain. As technology continues to evolve, blockchain is likely to play a bigger role in the field of education. With so many student records, verifying a large number of documents and academic credentials can be time-consuming. According to the analysis conducted by Credential Engine in 2019, there are more than 738,000 unique credentials, including grades, certificates, and digital badges. With Blockchain Technology, all this data can be securely stored.
