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What is Blockchain and How Can Industries Benefit?

By Moris Alhale - Snapmuse.io.


Moris Alhale By Moris Alhale | CEO - Fri, 09/15/2023 - 09:57

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In 1991, physicist Wakefield Scott Stornetta and computer scientist Stuart Haber, both Americans, published a technical article titled How to Time-Stamp a Digital Document. With it, they won the 1992 Discover Award for Computer Software, a non-competitive award given by two computing organizations to those who made outstanding and innovative contributions to the field of software quality.

What both proposed was to place a kind of "time stamp" on digital documents, so that they were not modified during their journey within the internet networks of that time. They did not imagine it, but with that work, they cemented what decades later would be blockchain technology, now well known for being the basis of different cryptocurrencies, which are peer-to-peer electronic money systems (equal to the same) of which much has been written. Therefore, we will not delve into it now to make way for something that I consider much more exciting and valuable for the future.

Broadly speaking, blockchain is a chain of interconnected data blocks that are developed on Web 3.0, a revolutionary digital platform that we have already talked about in previous installments, currently in vogue and whose main value for users is information control. Its premise is to allow value transactions or encrypted data, with certain advantages that hide much more than they appear: decentralization, security, transparency, and immutability.

In the blockchain, the data is protected in a distributed way among the participants of the chain. Compared to traditional data centers (located in a single point and managed by third parties, with all the imaginable risks that entail), they are not exposed to a wide range of inconveniences, such as computer theft and even fire or weather failure.

Your operations are recorded unalterably in a database called a ledger to which only a group of people have coordinated access. In case of changes in the information, everyone is notified, with the option of being able to restore it to its original state if necessary. Once something is added to the blockchain, it is impossible to change it without the consensus of the operator network.

It is a relatively easy concept to understand, with enormous potential to revolutionize all types of industries, demonstrated after several years of verifying the security and effectiveness of decentralized operations that give life to the blockchain.

One of the sectors that have made the most progress in its implementation is the financial sector, since this innovation makes cross-border transactions faster and less expensive compared to traditional banking. In addition, with this technology, institutions can develop algorithms to detect money laundering and various frauds, with the identification of patterns of abuse.

Supply and logistics chains are so important in industries such as food, it helps to combat piracy, verify the authenticity of products, have better traceability of supplies, and make more efficient use of natural resources.

In the same sense, for any manufacturing company, it makes it easier to have complete and real-time visibility of the supply chain, reducing delays and inefficiencies. Manufacturers and processors of just about anything can get a lot out of the blockchain if they know how to capitalize on the value of the four properties mentioned above.

For those in real estate, a blockchain allows real estate transactions to be transparent and cannot be fraudulently altered. In the field of education, it facilitates the issuance of certificates with strong digital locks for the verification of academic achievements, avoiding counterfeiting.

While in the world of the arts and everything related to content creators, blockchain-based platforms are a door for creatives to earn alternative income, outside of the already somewhat worn-out and not always convenient monetization scheme offered by brands. consumption or social networks, generally managed by large companies.

Under this new logic, digital artists can sell their work directly to fans and collectors, cultivating stronger virtual communities with them. With the option of rewarding them for their level of commitment and loyalty, for example, among many other possibilities. That's how we put blockchain and Web 3.0 to use at Snapmuse.io, taking legacy interactions from Web 2.0 social platforms to a new level, where content creators and their followers win equally.

In short, blockchain has the potential to reduce costs, improve efficiency, increase transparency, and strengthen security across multiple sectors. However, proper implementation and ongoing training are essential to maximize these benefits. There is a lot to do from the cultural point of view of organizations in their relationship with technology. From the outset, people and institutions must be willing to trust decentralized systems, instead of traditional centralized entities.

Photo by:   Moris Alhale

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