Time for blockchain to assume a profile beyond archiving cryptocurrency
Blockchain is still a relatively new concept. In the context of crypto, blockchain has been thrown around enough times that it now equates to crypto in many people’s minds.
According to the 2022 Global Crypto Adoption Index report by Chainalysis, the adoption of digital assets in the MENA region has grown 48 percent compared to the previous year. The data further states that MENA-based users received $566 billion in cryptocurrency from July 2021 to June 2022. Within the GCC, the UAE and Saudi Arabia rank as key hubs, championing crypto adoption and acceptance.
While crypto is a big part of the blockchain, the latter is a cutting-edge technology beyond crypto. Blockchain represents an emerging technological infrastructure that is changing how industries and economies work in the midst of a data and digital revolution. Simply put, blockchain is a publicly accessible ledger of information and transactions.
Tamper proof
It has created a world where all contracts can be digitally anchored and stored in seamless, shared databases that are secure against deletion and tampering. Most people don’t realize that blockchain is not just about payments and crypto solutions, but rather has a broader impact on various industries such as healthcare, supply-chain management, cyber security, government, real estate, e-commerce and more.
The main reason blockchain has quickly become pervasive across industries is because of the data security it provides organizations and users. Unfortunately, the data is not as secure as you think. According to the Federal Trade Commission (FTC), consumers lost more than $5.8 billion to fraud in 2021 alone. FTC data further showed that about 14.4 million people were victims of identity fraud, which roughly equates to about 1 in 15 people.
A secure storage
With massive data breaches taking place across prominent organizations like Meta, securing private data has never been more important. With blockchain, institutions and authorities can place important documents such as national IDs, certificates, wills and deeds and licences, all in a single secure, encrypted, yet public domain. Switzerland has already committed to digital IDs built on the Ethereum blockchain. It probably won’t be too long before we see the UAE also take the same steps.
Healthcare is another significant sector that has been transformed by blockchain technology. The lack of a secure platform to store and share data is one of the main challenges facing hospitals and medical clinics. Outdated infrastructure means healthcare facilities and data remain vulnerable to hackers who misuse private healthcare data on a regular basis.
This is where blockchain technology can provide a secure space for sensitive data such as medical records and history that can be securely stored and shared between authorized professionals and patients. In fact, IBM has already ventured into this space with its very own Digital Health Pass, which enables organizations to verify the health credentials of employees, customers and visitors.
Along with healthcare, industries that have further flourished with blockchain are e-commerce and retail, which are becoming more efficient by lowering costs and tightening the security of transactions. E-commerce giants such as Walmart, Amazon and Alibaba have started exploring blockchain technology, and the latter even patented a blockchain-based transaction system in Brazil in March 2020. In the UAE, we have also seen various retailers and hotels giving their customers a crypto. payment option.
Make payments transparent
Blockchain technology can help governments, businesses and individuals tackle some of our most pressing socio-economic challenges such as unemployment and corruption. For example, governments and educational institutions can use blockchain in student loan record keeping, which contributes to the government’s efforts to shift to a paperless and accessible system. Similarly, ports and logistics operators around the world have used blockchain to manipulate shipment tracking and create a seamless supply chain operation.
Another interesting area of use this year has been the registration and tracking of charitable donations. Blockchain can be incorporated into philanthropic and voluntary organizations to increase levels of transparency and authenticity.
Even with these new use cases, we must understand that blockchain has not yet shown its full potential. We are still in the early stages of adoption, with a long road ahead involving much-needed education and in-depth understanding. Slowly, organizations, economies and people will realize the value, inclusion and solutions blockchain brings to the masses.
Until then, it is a matter of time and patience for the world to start unlocking blockchain.
