Blockchain technology emerged at the end of the last decade as a profoundly anticipated technological innovation whose use cases – far from restricted to cryptocurrencies – possessed far-reaching outcomes for every company struggling to analyze their data, both externally and internally within parties.
While blockchain technology happens to be vital for cryptocurrency, use cases of blockchain extend far beyond its currency value and happen to be billed as a panacea for approximately all transactional pain points. One such example is the covid-19 pandemic. It happened to highlight various use cases for blockchain technology and presently, people are beginning to witness greater use cases of this technology, particularly in the covid-19 vaccination drive.
Blockchain offers distributed collaboration capabilities, indisputable traceability, and rapid updates for supporting the low latency information backing a sundry of use cases, from cognitive computing to the Internet of Things, and the other applications of blockchain are limitless. Nevertheless, as its crypto foundation turned out to be mired in problems of latency, data privacy, and scalability, the once bright perspective of blockchain turned out to become occluded by irrelevance and doubt.
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How Does Blockchain Work?
Blocking usually works by preserving data in blocks that happen to be chained to one another. The uniqueness of the system arises from its sustainability as it turns out to make an irreversible timeline of information in a decentralized manner.
When a block happens to be filled, it turns out to be a time-stamped part of the timeline that one cannot change through to a particular party. Blockchain comes with the potential to revolutionize the process of businesses as it includes organization, transparency, traceability, and security.
Potential of the Technology
The government has remained vocal regarding the possibility of blockchain applications and has identified approximately plenty of new use cases for the technology which it anticipates to enhance efficiency by 30%. While much of this enthusiasm and support has come from the governments, the private sector is also trying to embrace blockchain lately.
The retail industry happens to be entering a trust revolution. In this, food traceability turns out to become an international trend where customers obtain their visibility on the whole food journey, particularly after the covid-19 pandemic has accelerated the impact on hygiene and safety matters. The overall digitization of data and transactions offers a further effective way of working throughout the supply chain for processors, growers, regulators, shippers, retailers, and customers.
Apart from that, the ease of tracing a particular product is another advantage of applying this technology. The outbreak of food-borne diseases has remained a major driver for applying the technology in the food industry. Salmonella, Hepatitis A, and E-Coli are some of the hazardous materials that accidentally might intervene within the food production procedure.
Earlier, it took months to track the origin of contaminated foods, thereby investigating the possible reasons and recalling the products behind the disease outbreak. Now, with blockchain in the application, it only needs a few hours to allocate the origin of these food products, thereby saving the lives of millions of people along with the brand reputation.
The most pronounced trend of blockchain technology of this year happens to be the motion towards resolving its scalability problems with the help of the cloud. There are numerous crypto use cases in which the notion of scale, either vertical and horizontal, highlights mountain numbers concerning data and users, thereby inducing considerable latency, approximately derailing the value of this technology.
A one-stop solution to this requirement arising from the decentralized consensus approach of blockchain to transaction validation highlights employing serverless computing architecture for resolving the latency outcome from the traditional approach, thereby making every machine perform the same work.
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Challenges Involved in Blockchain
Despite the advantages of blockchain, it faces numerous challenges. It requires a great deal of power, massive computing capacity, and slow transaction rates. Opposing legacy transaction processes, those capable of carrying out thousands of transactions each second, blockchain can only carry out 3 to 7 transactions in one second. The essential challenges of applying to the currency technology usually revolve around how informed consumers and decision-makers are regarding the potential that this kind of technology enables.
Blockchain happens to be a technology itself that is not visible directly to the consumer. It is not something that they can download for tracking the products they are using. When it comes to using technology and systems, it is pretty challenging to adopt a new one. Moreover, it requires time to educate the public regarding the enormous advantages it comes with.
With greater awareness and acceptance of cryptocurrencies, a spillover effect is likely to be for blockchain. The covid-19 pandemic has additionally spurred the application of blockchain technology by governments ready to trace and track those vaccinated. This technology can help facilitate vaccine delivery, ensure smooth delivery, thereby storing vital information of the vaccine, hence providing the transparency and traceability for vaccine passports.