Blockchain is one of the hallmarks of modern technological development. Most well-known for cryptocurrency and other digital currencies, blockchain has a range of applications across different sectors and jurisdictions. We look at the trends shaping the technological landscape, focusing on three sectors.
Smart Contract Evolution:
With its origins in the 1990s, smart contracts are stored on the blockchain and are automatically executed when terms and conditions that are directly written into code are met. Thanks to its decentralised nature, transparency, and immutability, blockchain offers a secure platform for executing the complex agreements of smart contracts. Initially used primarily for simple transactions involving cryptocurrencies, smart contracts have evolved as the technology has matured. Smart contracts now encompass a wide range of industries, including real estate, insurance and voting. The automated nature of smart contracts reduces processing times and paperwork, and the public availability of its terms and conditions builds trust and transparency.
Decentralised Applications:
Decentralised applications (also known as DApps) are software applications that run on a blockchain platform. Unlike traditional applications that use centralised servers, blockchain technology means that data from DApps is distributed across multiple nodes. This feature also reduces the risk of data tampering and censorship, as well as ensuring transparency. Some prominent examples of DApps include decentralised exchanges and platforms for trading cryptocurrencies, social media platforms such as Mastodon that prioritise user privacy and data ownership, and play-to-earn games where players can earn cryptocurrency or in-game rewards by playing.
Supply Chains:
Global supply chains are a complex network of interconnected businesses involved in the production, handling and distribution of goods. These networks can be affected by inefficiencies, lack of transparency, and security risks. Blockchain can be a powerful tool to transform global supply chains, improving efficiency, transparency and security. Blockchain creates an unalterable record of every transaction and movement of goods within the supply chain, allowing businesses to track products from their origin to the final consumer, ensuring accountability and trust. By recording detailed information about each product, blockchain enables real-time tracking of items. This is crucial for industries like food, pharmaceuticals, and luxury goods where product provenance and authenticity are paramount, with companies such as Walmart and IBM exploring blockchain solutions to trace food items from farm to table.
Blockchain’s potential is immense. As it matures and becomes more widely adopted, more innovative applications across different industries will emerge. From improving sustainability to enhancing customer experience, blockchain is poised to redefine the way businesses operate and interact. By embracing blockchain, companies can gain a competitive advantage, build trust with consumers, and contribute to a more sustainable and efficient global economy.
Photo by Shubham Dhage on Unsplash
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