Blockchain and the many changes that it will bring to the world

How Blockchain Will Change Your Future, Economy and the World - Smart Contracts, Easy Money Transfer, New Digital Economy, Transparent Supply Chain, Improved Healthcare, Digital Identity, Election Process



Blockchain is a digitally distributed, decentralized ledger that holds information in blocks. A ledger is like your bank passbook that records all transactions. Now what is decentralized ledger? A Blockchain is called a decentralized ledger because nobody controls it, meaning there is no central authority like bank or middlemen to control it.

Now if there is no central authority or third party then who authorizes the transactions? Blockchain authorizes transaction using consensus algorithm where majority of nodes or computers in the blockchain network must agree that the transaction is valid.

Now, this ledger can be viewed but can't be deleted or modified. It will always remain recorded on the database and every transaction on blockchain is encrypted.
Thus, a blockchain technology offers ultimate security features and will be used for record management in many areas. It will open up a new and transparent medium of carrying out transactions.

Manual paperwork and third party involvement increases the chances for faulty records and slows down the whole process. Blockchain can address these issues by eliminating the need for third-party verification. In short, blockchain eliminates the third party you need to trust and allows fast, cheap, secure and transparent transactions between two parties. It is indeed a technology that has the potential to reshape the world we live in.

Blockchain can bring many changes to this world and now I'm gonna share a few of them with you:

1. Money transfer would be faster, cheaper and securer

With blockchain, the two party can enter into any contract or make any transaction without the need of a central authority or third party. For instance, if you want to transfer money, you won't need a bank account. You will transfer it directly to the other party.

Transactions will be transparent without any paperwork or human intervention meaning fewer errors. If you're staying abroad and want to transfer money home, you will be able to do it immediately without trusting on middlemen like bank. In absence of third party, the charges would be minimal as well.

2. Smart Contracts

Eliminating middlemen is not an easy task but blockchain's smart contract will make the role of third party null or void. Any contract can be created, regulated and self executed using blockchain Smart Contract algorithm. You will be able to create temper free contract easily and quickly without paying any legal fees. And that's would be really great.

Smart contract is an algorithm where all terms and conditions of the contract can be specified and stored in blockchain. This facilitates 2 individuals can transfer money and other assets with no trust issue.

Smart contract is just like a vending machine where you put some coins and you get snacks or drinks automatically. Here there is no involvement of 3rd party, so it is fast, simple and has no trust issue.

Now smart contract in blockchain is decentralized and distributed so in order to hack it, you would need to hack thousands of computer at one go which is near to impossible. In case of vending machine, it can be hacked but smart contract in blockchain is distributed over many nodes or computers. So, it is impossible to delete or modify the contract.

And also before concluding a transaction, majority of nodes or computers in the network must agree that the transaction is valid. So, it is highly secured as well.

3. Selling and buying of assets would be easier and faster

Blockchain has the potential to change the way we buy and sell. It will ensure faster and low-cost settlement. Through blockchain, you just have to specify all the conditions and specifications of the asset in the smart contract of blockchain.

When a buyer agrees to buy, you just need to instruct the smart contract to transfer the ownership to the buyer.  Now, this transaction will be validated by the majority of the nodes in the network. And once validated, the transaction will then be recorded in the globally distributed ledger and will get updated to all nodes of the blockchain network.

In this case, one can delete, modify or hack a transaction from one node but impossible to hack the majority of nodes on the network. So, the process would be ultra fast, secured and automated and it will eliminate the need of middlemen.

For instance, if a house, flat or land is to be bought, just make payment and the blockchain algorithm will take care of contract part without the need of notarization. Just imagine how fast and simplified would be the whole process.  

4. A New Digital Economy

Blockchain will bring many changes in digital world and will give a significant boost to India's digital dream. Soon we will witness many positive changes in the digital commerce not only in the payment processing but also in the supply chain management. The government's proposal to introduce CBDC, a central bank digital currency or Digital Rupee is a concrete step in the field of computer managed currency. A digital rupee will be managed, stored and exchanged over the computer system. It will be issued by the central bank, i.e. the Reserve Bank of India (RBI). And, it will be based on "Blockchain and other technologies.

Since it will be based on Blockchain, you could transfer it directly to the other person’s digital wallet. This clearly shows that government is also not denying the future of virtual currency and has decided to launch its own Digital Currency. A launch of digital rupee is the sign of blockchain revolution gaining momentum.

Traditionally, we need every transaction to be verified and audited by third-party such as banks while this process is often labor-intensive or requires a bank to ensure safe and secure transactions. But with blockchain technology, it can be cheaply implemented on a global distributed ledger.

5. Build a Transparent Supply Chain

Since blockchain is accurate and effective and that's the reason why it can be very useful with supply chain management. It can keep track of every step of product journey from factory to consumer. It can increase end-to-end visibility and transparency in the whole process of product distribution. It will reduce management inefficiencies by replacing paper-based systems.

We all know how Supply chain disruptions can cause prices of many things to go higher. And when they affect the supply of more-basic commodities such as generic drugs or energy, such goods become unaffordable to many people. Blockchain technology can streamline the whole process of supply chain by reducing human intervention through digitization and will ensure visibility.

6. Blockchain in healthcare

Blockchain in healthcare would be able to keep track of the medical records of patients. Just checking medical profile stored on blockchain, the doctors will be able to figure out which medicine had worked for you in the past. They would be able to find out your family medical history, allergies, life style etc. and that would help the doctors in the correct diagnosis. And we all know that how early diagnosis can save many lives and money as well.

7. Blockchain will streamline the insurance process

Blockchain powered by smart contracts can streamline and automate the entire insurance claims process and payments. The claims would be settled quickly without human intervention. Blockchain will also increase transparency between all parties involved and enable trustworthy transactions. And it will also save insurance companies a lot of time, effort and lower administrative costs as well   

8. Digital Identity

Digital Identity is also where blockchain could be a game changer. A blockchain based identity system provides a tamper proof infrastructure. Nobody can impersonate or create a fake id again. This would ensure protection against theft and provide safety to citizens.

9. Election Process

One more example where blockchain could be useful and be a game changer is in the Election Process of a country. Voter fraud has always been a great concern. Imagine if you could cast your votes and actually verify that your votes are counted. This would ensure transparency in the voting system and elect the right candidate. This would bring a fair election and would benefit the country greatly.

According to a report by 2030, blockchain could be used as a foundational technology for 30% of the global customer base. This all shows the potential of a great technology.