How Blockchain paves the way for a better future

Janine Grainger – Co-founder and CEO, Easy Crypto

What do you think of when you think of the “blockchain”? If you equate the “blockchain” with crypto – you are not alone. However, the truth is that crypto is simply a product and blockchain is the technology behind it. Blockchain technology and its potential is far greater than just crypto – with applications across various industries that can benefit societies globally.

Some like to think of blockchain as the scaffolding for innovation that will support and reshape the way we shop, donate, create and collaborate. Already, its decentralized and transparent nature (more on this below) is transforming the way we interact with each other and empowering individuals like never before. It is a ground-breaking technology whose mechanism is as simple as the potential for use is unlimited.

Continue reading if you are interested…

Blockchain Basics

At its core, blockchain is simply an online, public “digital ledger” (or record) that securely records transactions and information in a way that is tamper-proof and accessible to all participants. It eliminates the need for intermediaries and central authorities, puts control in the hands of individuals and ensures transparency and trust. A “block” is simply a record of new transactions. This ledger is duplicated and distributed across the entire network of computer systems on the blockchain.

An even simpler but powerful description of what blockchain is by a wealth management group went like this: “Imagine a huge football field with rows and rows of glass rooms that people can use to have private conversations. Because they are made of glass, everyone can see who is inside the rooms. However, no one can access a room unless they are given the key that only opens that room. (Well, it’s not an actual ‘key’. Rather, it’s a piece of software that’s created when you and the other person agree to start the transaction.) What’s important here is that while the key gives you both access to the glass room is not your room or the other person’s. The key is simply a mechanism that allows you and the other person to complete the transaction in a glass room without being interrupted (ie hacked), even though everyone can see you inside. In this way, a blockchain is like a series of glass rooms that everyone can see through, but no one has access to unless they are part of a transaction. As such, blockchain itself is not a device or a machine. It is a method of keeping track of the use of glass rooms (ie transactions).”

Limitless application

“Financial inclusion” is one of the most common narratives being developed through blockchain technology. Digital wallets on the blockchain allow people without traditional banking services (such as refugees or simply those living in countries where access to banking services is challenging) to safely receive, store and send money. (More on this here.)

However, blockchain’s potential extends far (and wide!) beyond just finance. This transformative technology is driving change across so many sectors, paving the way for a future where efficiency, accountability and inclusion coexist.

Supply chain management, for example, is being revolutionized by blockchain’s ability to provide a transparent and traceable overview of products in terms of origin. This ensures ethical practices, promotes sustainable consumer choices and helps combat issues such as counterfeit products and fraud in the supply chain. IBM’s Food Trust network is a good example of this. Used by Walmart and others, the technology uses blockchain to track the journey of food products from farm to table, ensuring food safety and reducing waste. The system makes it possible to achieve a dramatic reduction in the time it takes to trace back a contaminated batch of food or product – such as mangoes. Before, it could take up to approx. 7 days to trace the origin of the mango, meaning you could easily have bought and eaten a bad mango before they knew it was contaminated. Now it only takes 2.2 seconds. (More on the 2017 pilot for Walmart here.)

Within the energy sector, blockchain enables individuals to participate in peer-to-peer energy trading. By leveraging blockchain’s decentralized nature, individuals directly buy and sell renewable energy, promoting renewable energy adoption and fostering a sustainable energy ecosystem (facilitated by companies like Power Ledger).

The world of art and creativity is also embracing blockchain through Non-Fungible Tokens (NFTs) which are unique digital assets that represent ownership of art, music or other creative works. Artists use these to protect their digital creations, establish ownership rights, and engage directly with collectors to monetize their work in new and innovative ways. This is just the beginning of widespread innovation in this area, with applications lasting in limited editions and tickets appearing quickly alongside other innovation.

Blockchain is driving a wave of innovation that holds enormous promise for the future. Those willing to embrace this transformative technology with curiosity and an open mind will reap the benefits created by new opportunities and disrupting traditional models.

Disclaimer: Crypto is volatile, carries risks and its value can go up and down. Past performance is not an indicator of future returns. Please do your own research.

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