5 Big Benefits Of Blockchain For Right Now
The release of Bitcoin in 2009 was special for two reasons – the first being the creation of the cryptocurrency juggernaut that fills news stories to this day. The second is because of the technology that was used to power Bitcoin, a little something called blockchain or distributed ledger technology.
Both Bitcoin and blockchain have come far in that time, and as more time passes, it seems that the underlying technology is going to be the winner in the long run. Bitcoin has many uses, but there is still pushback from regulators and banks over its use. Blockchain, on the other hand, has been accepted as the “big new thing” and is inspiring a revolution on the internet, which people are calling Web 3.0.
Much like how Web 2.0 changed the world we live in drastically, Web 3.0 promised the same paradigm-shifting changes are happening over the next five to ten years. What innovations will come out exactly are as of yet unknown, but there are some signs coming out from both startups and established companies alike.
Here we will attempt to show what the benefits of blockchain are and how they can be used in certain use cases in the Web 3.0 revolution.
Transparency: Key To Developing Countries
Data transparency is one of the key benefits of blockchain technology. Since all the data is stored on the network, and everyone has the same data – no one can update data without consensus. Requiring everyone on the network to agree to change data means that manipulation is much more difficult and hiding wrongdoing is almost impossible.
The use cases for transparency are numerous but many governmental and non-governmental organizations have looked at the transparency available in blockchain technology as a way to improve governance and trust among the voting base.
Supply Chain Management: Business’ Golden Ticket
Applying blockchain to supply chain management has numerous uses – and all of them are better than the current model. More money is spent verify and trusting data from outside suppliers than many would think and having a blockchain network where suppliers and buyers can hook into that has immutable data is something that logistics specialists have dreamed about for a long, long time.
The Internet of Things and 5G will finally enable massive, scaling blockchain networks to exist and this is going to be a gamechanger for manufacturing industries. Many even think that something like this will eclipse the JIT (Just-In-Time) innovations that Japan brought about in the 70s and 80s.
Cost Reduction: Small Computing Devices Are The Way Forward
The dawn of 5G means that modems will finally be cheap enough to put into devices that are cheap. This is going to lead to data capture becoming more advanced than ever. The smallest devices will be able to send information over 5G, and they will be able to do it very quickly.
Businesses that need computing power need to install expensive servers that need specialized teams of people to keep them running. In this new IoT and 5G world, blockchain can be used to create a virtual network that is secure, fast and above all much cheaper than anything that has previously come about.
Global payments: The Original Use Case Of Blockchain
Bitcoin was the worlds first truly decentralized, peer to peer payment system and it shows. The cryptocurrency is worth $8000 at the moment and many people in the industry have predicted that it will continue to rise as it becomes more mature. However, Bitcoin is not the only global payments system as more and more companies are getting in on the act.
JP Morgan Chase, a large and traditional financial institution recently used its very own blockchain to power a transaction between two businesses. Banks are usually very wary of new technology. They wait for all the kinks to be sorted out before truly committing, but with blockchain more and more banks are jumping on the bandwagon.
Why? It’s simple – the cost of not doing so would be too high. Blockchain is the perfect cross-border payment solution and with Facebook looking to create its own cryptocurrency, the banks might be scared of the competition that will come from other young companies.
Security And Privacy: Cypherpunks dreams
The fact that the original creator of Bitcoin is still now known is a testament to how privacy works on the blockchain. So long as you take a few precautions, you need never reveal your identity. In this world where all of our personal data is forcefully taken from, blockchain can offer a paradise of privacy.