In this article, we will see in detail the value of Blockchain technology, its future and why the blockchain is so valuable.
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Blockchain Technology: The value of Blockchain
Why is Blockchain technology so valuable? We will start with the concept of value because on the Internet there is no way to distribute or transfer value from one person to another directly.
The blockchain adds that element in order to transfer value.
This is something extremely valuable because if an asset can be copied and shared for free it loses value and in an industry where there are valuable assets that are sold and bought the ability to get an asset for free automatically removes all value from that asset.
This is exactly what happened to the music industry when people were suddenly able to turn songs into mp3’s and share them for free globally.
Secondly, the chain of blocks brings confidence to the internet, because it offers a single source of truth.
In a world where we are dealing with malware, dealing with false news and all kinds of misinformation it is very difficult to have the truth and to know specifically the reality about any kind of valuable asset.
When it comes to the blockchain this can be eliminated by keeping a permanent record in the blockchain.
Finally, the blockchain due to its decentralized and distributed structure offers greater availability to applications that are built on a blockchain.
Instead of having a centralized location that is vulnerable to attack, applications can be created across multiple servers and thus eliminate having a single point of failure, thus the blockchain offers greater availability to the Internet.
One of the areas where there is more development in the area of blockchain use is in what is known as smart contracts.
Bitcoin is simply a blockchain application, but when one implements smart contract technology, one can disintermediate other processes, as it can eliminate the requirements of having a third party in many of them.
Smart Contracts, also known as your “Smart Contracts”, “Smart Code” or “Smart Property”, are protocols that can act as a contract.
A smart contract can autonomously exercise the execution and enforcement of a contract without requiring the intervention of a third party or intermediary to ensure that the contract is executed.
What a smart contract can do is eliminate the need to have a third party in any type of exchange of a valuable situation, for example in the purchase of a house, the purchase of a property or the transfer of a valuable object from one person to another.
Instead of requiring the services of a third party to act to ensure that the transaction takes place the smart contract can do so autonomously.
Smart contracts must have two or more parties. Whenever one has a contract with any other party there have to be two parties involved whether it is from party “A” to party “B”, that there is a transfer of property or for example, it can be from one party to multiple parties but it cannot be simply one person or one party, there have to be two or more parties involved when one creates a smart contract.
Additionally, this smart contract has to be self-executing. Once the smart contract has been programmed and released, this contract has to act in a self-executing manner.
That is, no one can be involved in modifying anything in this process.
This intelligent contract has to be disintermediated as well. This means that when one forms that contract between two or more parties there is no intermediary between those transactions.
If part A and part B want to interact, the smart contract does so directly and does not require a third party. This is very similar to B0itcoin, as when you send Bitcoin to someone else you don’t need a bank or a credit card, the same thing happens in smart contracts.
The contract has to be completely automated. Once the contract is launched there is no way to stop it or to change things.
It has to be automatic and this is one of the things that provide the most integrity which makes a smart contract so valuable because once it is launched it does everything automatically.
It also has to be immutable, and this is also another major reason why a smart contract is so important.
This prevents any of the parties involved from changing any of the terms of this contract once it has been released.
Blockchain beyond Bitcoin
Let’s now look at real blockchain implementations, in order to better understand the implementation of Blockchain beyond Bitcoin and electronic payments.
The Supply Chain
Walmart and Carrefour (just two of the many companies that are doing this) are using blockchains to track food safety.
In the case of Walmart, they have implemented a solution primarily to track pork products in China and the reasons for the risk of contamination and on as huge a scale as Walmart’s if at any point a product is contaminated you have to find the source of that product in order to get it out of the supply chain.
The process before the blockchain took weeks. Today, with this solution they have implemented, the process has been reduced to a few seconds and sometimes even a couple of minutes.
In the case of humanitarian causes, the United Nations is using a solution based on the Ethereum chain of blocks and the World Food Programme solutions.
This is a project they have launched and are providing supplies to 10,000 Syrian refugees currently living in Jordan. All these Syrian refugees receive their supplies and everything is maintained and constant in the blockchain.
The reason why the solution is so practical is that this has reduced the problem with fraud and sometimes lost products.
Now that the solution is being followed in the blockchain there is no such risk involved.
The solution provided by UJO allows to track the ownership of different songs and keep track of the royalties for the musicians.
In this process the record chains are eliminated, therefore the musician has a record of all their properties and the royalties they generate.
The Accredible company permanently records educational records in the blockchain.
This eliminates the risk of fraud and also keeps a permanent and unchangeable record of all degrees or diplomas that people have earned.
In terms of certification, this DNV GL, who have implemented a solution for recording certificates of authenticity to combat piracy and have now implemented more than 90,000 certificates in the blockchain.
The future of Blockchain
What we are currently experiencing is only the beginning of a wave of innovation that will integrate the chain of blocks in multiple other areas and the reason for this is because Blockchain is a force multiplier.
Blockchain technology can enhance and increase the impact of multiple other technologies that are currently being implemented.
Among these technologies is the Internet of Things and the trend is that all devices are going to be connected to the internet, from your fridge to your TV to your car, everything will be connected to the internet and these connections have to be secure and reliable.
With the chain of blocks, you can prevent the risk of different hackers.
In the concept of virtual reality and add augmented reality, being able to create digital assets that can be safely transferred over the internet presents a new opportunity, among them, for example, there is a game called CryptoKitties, which is created in the Ethereuem blockchain.
In that game, people can collect and buy virtual cats created in this blockchain.
One of these cats was sold for more than 100 thousand dollars and regularly these kitties are sold for thousands of dollars.
Robotic process automation is another area that is going to be dramatically impacted by the blockchain concept and this is because as people are replaced by robots, the blockchain maintains this constancy and can preserve the integrity of all the different robots that are acting and doing the different processes.
Read also: What is the relationship between Bitcoin and Blockchain?
The blockchain prevents hackers from entering or modifying the entire process these robots are working on.
From drones to artificial intelligence, to Big Data, to 3D printing, all kinds of technology are being integrated with the blockchain and as time goes by the blockchain will enter all these different areas.