Blockchain is a disruptive technology that has taken the world by storm. The world witnessed blockchain technology in action for the first time back in 2009 with the launch of Bitcoin. Yes, it was Bitcoin that introduced the world to blockchain technology.
Over the years, the popularity of blockchain has shot up. The biggest factor that contributes to the widespread acceptance of blockchain is the growing interest of people in cryptocurrencies.
In this article, we’ll discuss the points shared by Casper Muller, a blockchain expert, that highlight the importance of blockchain technology.
What Exactly is Blockchain?
Blockchain is a distributed ledger technology that provides a highly secure way of recording and accessing transactions. Mr. Casper defines blockchain as a type of shared database that is immutable and uses cryptography to encrypt data stored in it.
Moreover, the database is decentralized and multiple systems, acting as nodes, have a copy of the ledger with them. Due to its decentralized nature, it’s extremely difficult for malicious actors to access and manipulate the data or records in a blockchain.
What are the Applications of Blockchain? Is its Scope Limited to Cryptocurrencies?
Casper Muller explains that contrary to what many people believe, blockchain is much more than just cryptocurrencies. It has several real-world applications.
Devices in a blockchain’s decentralized computer network use a consensus algorithm to process transactions and reach a mutual decision to accept or decline a transaction. The consensus algorithm plays a crucial role in making blockchain tamper-proof. There are many types of consensus mechanisms used by blockchains, including proof of work (PoW), proof of stake (PoS), and delegated proof of stake (DPoS).
Blockchain provides an extremely secure way to store and retrieve data, and thus it is useful for accomplishing real-world tasks. According to Casper Muller, there are four key applications of blockchain that we should watch closely, and they are as follows:
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Non-fungible Tokens (NFTs)
NFTs allow us to bind physical or digital assets, such as artworks, game characters, etc., to crypto tokens. With NFTs, it becomes possible to tokenize assets and trade them on blockchain networks.
The biggest advantage of NFTs is that you do not need to worry about storing and managing physical assets. All the ownership details of an asset would be stored securely on a blockchain.
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Gateways for Cross-border Payment
Blockchain-powered payment gateways ensure secure and transparent cross-border payments. When compared to conventional cross-border payment methods, blockchain payment gateways are exceptionally fast, as they can process an international payment within minutes or even seconds.
Additionally, the fees that one needs to pay for an international transaction via blockchain are quite low.
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E-Voting
Blockchain comes in handy for ensuring a transparent and tamper-proof voting process. By leveraging a distributed ledger, it becomes easy to ensure that no individual cast more than one vote. Also, the voting process will become simple as all you need is a few clicks on your smartphone to cast your vote.
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Supply Chain Tracking
The ability to store data securely and make it immutable supports the use of blockchain for supply chain tracking. It becomes possible to track the complete journey of a product, right from its raw material sourcing to the final delivery. This helps companies to detect any possible issues in their supply chain and provide end users with quality products that lead to higher customer satisfaction.
Blockchain in 2023 and Beyond
Casper Muller suggests that the popularity of blockchain has slowed down in 2023 compared to the previous two years, all due to the losing interest of people in cryptocurrencies. However, he is firmly convinced that blockchain is one such technology that can completely change the way many things work. Thus, its adoption will increase in the coming years.
To Sum it Up
Counted among the most disruptive technologies, blockchain has the potential to revolutionize the world. It is an advanced technology that we can integrate with other technologies like artificial intelligence and IoT to produce futuristic solutions for a wide range of industries.