The world stepped into a new technological era when Bitcoin appeared as the first cryptocurrency existing on the blockchain network. Blockchain has made it possible for cryptocurrencies to exist as it’s a unique system for storing relevant data.This technological era meant for a revolution storing digital data as many companies and private entrepreneurs realized the great potential of blockchains. This article explores the new blockchain trends and where and how they can be implemented.
It all began with Bitcoin
Explaining blockchains wouldn’t be possible without mentioning Bitcoin, the first cryptocurrency. Bitcoin is the masterpiece of Satoshi Nakamoto, a person or group of people still unknown whose identity has yet to be revealed to the world. Satoshi created the crypto trends we see now, opening the gates for many other inventors to do the same. This led to multiple cryptocurrencies being mined.
When investors took notice this increased the value of cryptocurrencies and blockchain systems. Yet, in order to invest in cryptocurrencies, one must know about crypto search trends to invest in crypto trends. This also means knowing how blockchains can be improved for other purposes. Thanks to many investments, blockchains have opportunities for new implications, such as efficiency and application in various industries.
How does blockchain work?
Blockchain is an efficient way of dealing with data. It’s purpose is to store digital data, validation and distribution. It derives its name from storing data in ‘blocks’, which in turn, form an unbreakable digital security chain called hash.
Storing data on a blockchain isn’t as simple as it might seem at first glance. A new block of data cannot be added to previous blocks until the existing data is verified. This makes it impossible to alter any added data without adding data stating that there has been a change.
All data is transparent to people who have access to that blockchain. Thanks to this, there is no centralization of the stored data to one company, like banks. Rather, all users know where Bitcoin has been used for. However, it’s not easily visible who those people are, but only their blockchain address.
Blockchain for other purposes
The creator of Bitcoin probably didn’t think blockchain would be used for other purposes than originally planned. Many people obviously like the decentralization of data and its transparency, which led to blockchain being implemented in many fields.
Besides storing data for monetary transactions, it can also be used for digital IDs, data sharing, supervising supply chains, protecting digital copyrights and policies, improving healthcare systems and regulating and managing Internet of Things networks.
Decentralization of finance (DeFi)
The main goal of Bitcoin is decentralization and removing banks from being the only ones in charge when dealing with finance. Thus, banks aren’t needed for transactions because everyone with access to a blockchain can track transactions with a particular currency.
Regenerative finance (ReFi)
Thanks to blockchain, a new solution appeared for more sustainable finance. That's regenerative finance. Its ultimate goal is creating and managing economic systems that will focus on investing and enhancing natural assets.
New payment methods
Bitcoin and blockchain influenced how monetary transactions are done. It also led to the appearance of various digital wallets, also known as e-wallets. They are like ecards. Traditional money currencies can be stored on it and used for any transactions. In any case, central banks need to implement blockchains if they want to accept cryptocurrency as a payment method.
Improving healthcare systems
Healthcare institutions deal with storing sensitive data. Using a blockchain in a healthcare system will make sure that all the data is more secure, especially patients' medical records. Also, blockchain systems can help in faster verification of educational credentials of people working in the health sector.
International trade and supply chains
International trade and supply chains are overburdened with various check-ups and validations. Those things require third parties to verify the data, which takes time and money. Blockchain systems facilitate this because it boosts the whole process thanks to smart digital contracts.
Smart digital contracts
These smart contracts are encoded documents on a blockchain, which makes paperwork simpler and automated. These smart contracts can be used in other areas, for example real estate business and inheritance.
One of the popular tokens is NFT, or Non-fungible tokens, mostly used in the world of art, entertainment and fashion. The NFTs are unique, irreplaceable identifiers of a digital identity used to guarantee ownership and authenticity.
Enhancing the protection of digital identity
Most people are concerned with the misuse of their digital identity. Thanks to blockchain and its decentralization of identifiers and embedded encryption, any private data exchange will be done securely. This is crucial when dealing with customers in e-commerce. It can fasten the digital identification of customers.
Entertainment and social network
It has found its place also in the world of entertainment, especially the world of gaming. Virtual worlds of fun will be created more easily. Metaverse is a great example of a virtual world. Additionally, it can enhance the users’ experience of social networks, especially when dealing with safeguarding the users’ data against any misuse.
New opportunities for the IT sector
The IT sector will benefit from blockchain in many ways. For example, instead of using Software as a Service (SaaS) for cloud storage, it can switch to Blockchain as a Service (BaaS). Microsoft and Amazon have already started using it for creating digital products stored on a blockchain. Also, there are decentralized apps and the Internet of Things (IoT), the latest used as a connector among devices that exchange data. One example is Web 3.0.
A bright future for blockchain
There are many examples where blockchain can be used. Thanks to enabling transparency and decentralization in any field of the digital world, its popularity is rapidly increasing. This leads to the conclusion that a bright future awaits blockchain.