Impact of Blockchain Technology on Society

Blockchain, a word that has created so much buzz around us. A technology that is almost new and encourages us to dive deep into it. Blockchain technology connects with Cryptocurrencies. However, there is a huge difference between them. Let’s look at them closely, blockchain is a technology designed to securely and transparently record transactions done between people or computers. Instead of being stored on a single central computer or server, the information is stored across a network of computers, making it very difficult to tamper with or hack.

A blockchain is like a digital ledger; where every transaction occurs, it is recorded as a block in the ledger. Each block is then connected to the previous block, thus forming a chain of blocks. Once a block is added to the blockchain, it cannot be altered or deleted, and every computer on the network has a copy of the blockchain. This eliminates the need for any central authority or regulatory body to monitor the transactions. This technology is often used in cryptocurrencies, like Bitcoin, to keep track of transactions. Still, it has many other potential applications, such as securely tracking supply chains or ensuring secure voting systems.

Role of blockchain technology within organizations when sharing data:

Coming to the benefits that blockchain offers to organizations. One of the primary advantages is security. Using cryptographic algorithms to secure data, blockchain ensures that sensitive data remains confidential and tamper-proof. This is especially important when sharing sensitive information, such as financial data or personal information.

Another benefit of blockchain technology is transparency. The decentralized nature of the blockchain allows for a transparent and immutable record of transactions, which increases accountability and reduces the risk of fraud or corruption. This feature is especially useful in industries such as healthcare, where transparency is critical for regulatory compliance and patient safety.

Blockchain can also improve the efficiency of data sharing by eliminating the need for intermediaries, such as third-party data brokers. This can reduce costs and streamline the process of sharing data between organizations. Additionally, blockchain can establish trust between organizations by providing a shared, decentralized database that all parties can access and trust.

Are blockchain and cryptocurrency the same?

Cryptocurrency and blockchain are not the same, but they are closely related. Blockchain is the underlying technology that powers cryptocurrencies, such as Bitcoin, Ethereum, and many others.

Blockchain is a distributed database or a public ledger that stores information across a network of computers, each block of information is linked to the previous block cryptographically, forming a chain of blocks, hence the name "blockchain."

Cryptocurrency, on the other hand, is a digital asset that uses encryption to verify transactions and control the creation of new currency units. Cryptocurrencies rely on blockchain technology for secure and verified transactions.

Therefore, while cryptocurrency relies on blockchain technology for its operation, blockchain has many other applications beyond cryptocurrencies, such as supply chain management, identity verification, and decentralized governance.

Impact of Blockchain on Society:

New Opportunities:

?Blockchain has led to the creation of new business models, such as cryptocurrencies, decentralized finance, and non-fungible tokens. These new industries are disrupting traditional financial systems and opening up new opportunities for innovation.

Health Care Benefit:

One of the major benefits is that we can track the delivery of medical goods right from their manufacturing place till their delivery through supply chain management, so this reduces the chance of alteration done with them. This method ensures the buyers of the quality of the products they buy.

The healthcare sector should be a secure domain. The ability to access, edit, and trust the data from its activities is critical for the sector’s operations.

Transparency:

Everything happening in blockchain technology is transparent and visible to us. It provides a transparent and immutable record of transactions, which can help to reduce fraud and corruption. This can lead to greater trust in institutions and governments and improve accountability.

Data Security: 

Blockchain uses cryptographic algorithms to secure data, making it almost impossible to hack or alter. This can help to protect sensitive data, such as personal information, medical records, and financial data. 

Efficiency:

Blockchain technology can improve the efficiency of many processes. There is a huge amount of paperwork when any transaction occurs, but in this case, everything is technically handled without the possibility of any human error occurring.

Fraud prevention:

There is no chance of any fraud as everything is verified with identity verification processes.

Automation:

Even the transaction can occur without human intervention through ”Smart contracts,” which is a speedy process. In this, certain conditions are pre-determined, and on fulfilling these conditions, the transaction safely occurs without needing any third party member to verify it.

Use Cases of Blockchain in Society:

Real estate transactions:

This is one of the wide use cases of blockchain. It makes them faster and more secure at the same time.

Voting System :

Voting systems can be made secure, transparent, and impervious to fraud and manipulation using blockchain technology.

Identification System:

Blockchain can be used to build a distributed identity verification system. This can help reduce identity theft and fraud by providing a secure and tamper-proof way of verifying identity.

Supply chain management:

Blockchain technology can be used to develop a decentralized identity verification system. This can help reduce fraud and identity theft by providing a secure and impregnable means of identity verification.