Before we delve into what those seminal changes might be, we have to get a handle on something called a smart contract, which is a central premise of the blockchain technology. The term itself describes a technology that has the ability to substitute legal contracts with digitization and automation. This would cut down delay in successfully carrying out transactions that is the norm in conventional contacts. The moment a delivery would happen a payment would get made.
These days smart contract has come to denote the software that makes computation on blockchain possible. That brings us to what blockchain itself is. To the uninitiated it can be described as a widely distributed and highly decentralized ledger which has been cryptographically secured. Each block within the ledger is referenced to the previous block and all the approved transactions, since that approval.
Now this transaction may pertain to myriad things. Everything from government, logistics, and education to healthcare, manufacturing and energy can leverage the properties of blockchain technology to obtain unprecedented enhancement in scale and efficiency. It is estimated that the adoption of blockchain technology across industries will add value to the extent of trillions of dollars in the next twelve years.
Let us look at the ways blockchain technology could prove to be a major disruptor in the near future:
1. Decentralized Cloud Storage- Even though we all store a lot of our vital information on the cloud, the fact is that we are queasy about handing control of important aspects of our lives to another entity. You always worry about how your data might get compromised and misused.
Blockchain data storage will resolve that problem in one fell swoop. No longer will any single entity be the sole custodian of all your data. Besides, the level of security will be a lot higher in the case of blockchain data storage on account of the very nature of the technology. This is because multiple copies of every transaction exist on multiple computers making hacking impossible.
2. Digital Security- Everyone knows that digital security is a huge issue worldwide. This is something on which billions of dollars are being spent annually. Blockchain technology can provide a secure way of carrying out all manner of digital transactions. If for instance, banks were to adopt blockchain technology, their customers could receive a secure digital ID rather than have accounts opened in their name. What’s more, only they would have access to both the details of the account and the funds therein. Even the banks would not possess the ability to access their customers’ funds!
3. Transformation Across Sectors- The application of blockchain technology across sectors is only a matter of time. Take the case of the real estate sector where there is a lot of opacity in the transactions. Often the records are inaccurate due to mistakes or fraud. Plus there is loads of paperwork. Blockchain technology can comprehensively cleanse the system of all these problems. With very little paperwork involved and the documents becoming easily verifiable with regard to their accuracy, issues pertaining to transfer of title will be a thing of the past.
Healthcare institutions like hospitals can share vital information across their networks without in any way compromising the sensitive data being conveyed. Similarly blockchain technology can make the voting system faster, more accurate and extremely secure.