Blockchain is chain of blocks in literal sense. It is referred as a distributed ledger. A growing record of transactions (known as blocks) which are linked chronologically and secured using cryptograph. It is decentralised and immutable. A block is a piece of data (or transaction) stored within the blockchain. To access a record in blockchain, you must be in blockchain network.
Examples of blockchain technology in finance sector are Bitcoin, Ethereum, Litecoin and others. This techology is not limited to only financial sector but to any industries valuing trust.
Almost any industry who shares data among multiples parties, requires verification, are time sensitive and requires transactions by different users will require a blockchain solution. Practical applications of blockchain being explored today are listed below.
Bank use- integrating blockchain into bank will see transcations processed in minutes and securely.
Healthcare- making it easier to access patients' medical records. They can be encoded and stored on the blockchain with a private key to ensure privacy.
Cryptocurrency- you would have heard about this on the news examples of popular cryptocurrencies are Bitcoin, Ethereum coin, Ripple. They are digital currencies.
Real estate- access of property records and deeds can be done easily and quicker using blockchain.
Voting- elimination of election fraud.
Charities- Ensuring your gifts are being used properly by charity organisations.
Supply chain- tracing source of materials or products and full visibility of supply chain.
And others- opportunities are endless. If you can think of any other applications of blockchain, feel free to share with us.
Advantages of Blockchain are transparency, secure transactions, decentralisation and accurancy of the chain.
Disadvantages of Blockchain are techology cost, illegal activities, speed inefficiency and hack susceptibility.
We have higlighted below areas that blockchain can open up new market opportunities for developing countries. They are:
Supply chain tracking- tracking goods at every stage in supply chain.
Records- clear and reliable records of ownership in property, education and health sector.
Smart contract- makes it easier to transact business without fear. They are self-executing computer programs that are event triggered.
Cross-border payments & currency- fast and secured means to store and transfer of value
defkode's goal is to understand blockchain techology, collaborate with startups and create solutions to help developing countries with adopting this technology.