Pass the price volatility of digital currencies and discover a robust, decentralized and secure database. Brands and technologists quickly know how to use this powerful registry wisely. Here are several concrete examples demonstrating that the blockchain technology underlying cryptos is well worth the hype.
The first blockchain is the decentralized big book behind the bitcoin of digital currency. Gregory Barber introduced bitcoin and blockchain in simple terms in The Blockchain WIRED Guide:
"The general ledger consists of lots of linked transactions called blocks (hence the term blockchain) and identical copies are stored on each of the approximately 60,000 computers making up the bitcoin network. Every change to the registry is cryptographically signed to prove that the person who transfers virtual coins is the real owner of those coins. No one can spend their coins twice, because once a transaction is recorded in the general ledger, every node in the network will know it.
"The idea is both to know how each unit of virtual currency is spent and to prevent unauthorized changes to the general ledger. The result: no bitcoin user should trust anyone else because no one can deceive the system. "
The success of Bitcoin is evident in its consistently high growth rate. Since its launch in 2009, the blockchain has reached a size of about 226.6 gigabytes.
Today, Overstock.com, Microsoft and thousands of small retailers accept payments in bitcoins. Merchants love Bitcoin because it eliminates the heavy transaction fees imposed by companies such as Visa, Mastercard and PayPal. They can also use Bitcoin across geographical areas without restrictions.
Contrary to popular belief, merchants do not need to hold digital currencies in order to sell and therefore do not risk price fluctuations. No matter who can exchange bitcoins at any time, without constraints.
According to Blockchain's tip, payment industry leaders can also become blockchains. Mastercard has filed more than 30 blockchain-related patents, some of which under the heading "Method and instant payment system using registered warranties". This decision suggests that they build payment gateways based on the blockchain. Bank of America has also applied for patents related to blockchain. They may be using block chains to save billions of dollars every year in cross-border payments.
Digital payments are only a beginning. Blockchain shows the first signs of disruption of gaming, retail, financial services, health care, real estate and everything in between. These practical use cases illustrate the potential of digital payment.
Fun and games
The resounding success of Fortnite "demonstrates that completely free games can bring billions of dollars in annual revenue to developers through in-app purchases of cosmetics, from angelic wings to dubious dance moves, none of which can become better players, "wrote Destructoid Writer Desu Sponsor. The race to become the blockchain's dominant market for integrated shopping is not just about fun and games. Global revenues from integrated purchases exceed $ 37 billion in 2017, according to Statistica.
To address this market, Terra Virtua (an AR / VR platform for digital collectibles) in partnership with WAX Blockchain allow players to gain a true fortune in in-game purchases. Players can interact in the RA with thousands of digital and real items from the famous OPSKIN Market. Another advantage is that they can buy, sell and offer their digital resources without limitation.
Cyrus Charter Property and Land Company is piloting ShelterZoomReal estate management platform in the start-up phase. The first step is to add the "Buy Now" and "Rent Now" widgets from ShelterZoom to the property list site. The end goal is to streamline the entire process, offers and acceptances to the property exchange.
Verification and enforcement protocols could soon be integrated directly into smart contracts. These immutable and traceable transactions will prevent buyers and sellers from paying commissions and high fees currently charged by brokers, lawyers and bankers. Blockchain will greatly speed up the transaction process by eliminating round trips between intermediaries.
Civic Secure Identity Platform aims to make control over the personal identifiers to their legitimate owners – the consumers themselves.
Fraudsters made a record 16.7 million victims in 2017. According to Javelin Strategy & Research, they stole $ 16.8 billion from US residents alone. Beginning this fall, Civic Portfolio users can create multifactor biometric authentication without the use of traditional security features. There is no physical identifier, knowledge-based authentication, username / password or two-factor hardware tokens. The requester can access secure and encrypted data on the blockchain, without exposing the user of the portfolio to risks of data breach.
More generally, BIS Research The adoption of blockchain technologies could save between $ 100 billion and $ 150 billion a year by 2025 costs related to data breach. These include, for example, IT costs, operational costs, support costs and personnel costs, as well as the reduction of fraud and counterfeit products.
A new era of business applications
Big brands are also adopting blockchain and disrupting their industries from the inside.
Streamline back-end processes
Financial Services Company JP Morgan and the Depository and clearing company are trial blockchains technologies to improve the process of transferring the ownership of stocks and bonds. While investors can buy and sell stocks almost instantly using existing market technologies, the transfer of ownership can take several days. Digitizing the process with the help of the blockchain can dramatically speed up the exchange, while reducing the costs associated with transaction management.
Brick and mortar giant retail Walmart aims to improve food security applying IBM SaaS software Food Trust blockchain platform to its product supply chain. According to the Center for Disease Control (CDC), 48 million Americans are suffering from foodborne illness each year.
Scanning the food chain reduces the likelihood of contaminated food reaching consumers. In a pilot project conducted in 2018, Walmart traced a package of products up to its source in 2.2 seconds instead of seven days. Walmart has decided to switch to production. In the next steps, they will ask suppliers of green leafy vegetables to download their data in the blockchain by September 2019.
Other retailers that have joined the IBM Food Trust blockchain platform include Golden State Foods, Carrefour and Albertsons. According to IBM, grocers implementing its platform also benefit from reduced bottlenecks and food waste, a better brand reputation for safety and quality, and improved freshness. food.
Increased accountability throughout the supply chain
DeBeers Group, the largest diamond company in the world, wants to stop the production of blood diamonds. Diamond producers extract these diamonds in violent and often unstable circumstances. Its sales continue to fund regional conflicts. In a 2018 pilotDe Beers digitally tracks 100 high-value diamond trips from mines to retailers. The Tracr platform stores unique global IDs for each diamond, including attributes such as carat, color, and sharpness, and verifies the data at every step of the diamond path.
With greater transparency and easy traceability, consumers will be assured that registered diamonds are natural and conflict-free. At the same time, participating diamond manufacturers (including Diacore, Diarough, KGK Group, Rosy Blue NV and Venus Jewel) will benefit from increased efficiency throughout the diamond value chain. To attract competitors, Tracr allows the consortium participants to maintain total control of what they share with other participants through the use of confidentiality controls.
Even if the blockchain is in its infancy, it is a proven solution. Blockchains create transparency and trust, simplify transactions, guarantee security and confidentiality, and validate and document elements at every step. So you can expect that its many applications will lead to profound changes in the way we pay, play and work.