What is blockchain and what problems does it solve?

Blockchain is a unique technology with numerous benefits that can be applied in various fields.

What is blockchain?

Information about transactions in blockchain technology is stored in the form of blocks that are linked to each other in the form of a chain. Each block has a unique hash value and a unique identity to its previous block. So their common identity becomes a combination of the two. This means that no block can be changed or deleted without destroying the entire chain. Hence, blockchain technology is safe and transparent. In addition, the important point is that the technology is decentralized, with invariable characteristics. No authority can influence it.

In what areas can blockchain be useful?

Blockchain against fraudulent attacks and corruption

Since the blockchain provides completely transparent transactions, where information is securely stored in blocks, all attempts of fraudulent attacks and corruption are excluded. Thanks to the algorithms used, the blockchain cannot be bribed, it is not controlled by anyone, not even the government. These characteristics of the blockchain can be used in various fields, for example, in large government projects where there is a problem of corruption.

For example, in Estonia, elections have long been held on the basis of blockchain technology.

Blockchain and international transfers

Usually, when people want to transfer money abroad, they face the problem of high fees for such transactions. If we talk about developing countries, then the problem is especially acute for them, sometimes they are forced to refuse to make a deal. When using blockchain, there is no such problem, since there are no intermediaries either, and therefore transaction costs are sharply reduced, which makes it possible for developing countries to freely transfer funds abroad.

Blockchain and medicine

Blockchain technology can store information securely and transparently, so it can be used in the medical manufacturing chain (where standards are very high and critical), for example, in the production of pharmaceuticals. Blockchain can store all information about a drug from manufacture to sale. Thus, any consumer can be sure that the drug has not been changed according to the original formulation, that all components are safe and have been manufactured in accordance with all proper protocols.

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These were just a few examples where the benefits of blockchain can be used, what examples do you know? Share in the comments below!

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