“Blockchain technology” has been a buzzword for the past few decades, especially regarding cryptocurrencies such as Ethereum or Bitcoin. It is everywhere, and you will encounter it in almost every industry, including finance, healthcare, real estate, eCommerce, and much more. Even though this term has become very popular, its definition still remains unknown to lots of people. Since almost every aspect of our society is integrating blockchain technology, it is important to know what it is, understand how it works, and how it is impacting the digital world.
A blockchain is a ledger or database that is distributed among different nodes of a computer network system. It keeps data in an electronic format. Blockchains have become very popular due to their applications in cryptocurrencies, such as Bitcoin and Ethereum. Here blockchains act as a decentralized way to send and receive funds without any middleman. One of the most popular benefits of blockchain is that there is no need for trust among the parties.
It mainly differs from typical databases in the way data is structured. With a blockchain, data is stored in groups called blocks. These blocks are linked together hence the name “blockchain.” Whenever a new block is filled with information, it is connected to other blocks in the chain. Therefore everyone can verify or check if that information was added or not.
What’s So Important About Blockchain
Blockchain has proven that it has the potential to replace conventional financial processes, making them transparent and secure. Monetary transactions done using blockchain technology do not require a trusted third party to ensure that the transaction is successful.
This technology can be very helpful in verifying and tracing transactions that require multiple steps to complete. It decreases compliance costs, provides secure transactions, and speeds up information transfer processing. People can also use blockchain technology to manage contracts and find the origin of products or services. It is already being used to secure and process smart contracts, deeds, and even elections.
What’s Space Technology Got to Offer?
Even though blockchain is labeled as the future of carrying out transactions, it still has a long way to go, and space technology can offer a helping hand in the following ways:
- Blockchain users in remote regions without access to optic fiber cable for the internet can get a connection from SatComs.
- The insurance sector, which always has issues with processing claims, can use images from earth observation satellites to assess the extent and validity of damage done by natural disasters. This will significantly speed up claims keeping both parties happy. The supply chain management sector can also benefit from satellite location services which can be used to track assets. You can find more information about Earth Observation and its application on this site.
- Global Navigation Satellite Systems are vital for All blockchain apps that are dependent on geographical referencing.
The future of blockchain technology
An efficient and well-functioning supply chain is one of the main reasons why businesses succeed. Blockchain has already shown its potential to sustain supply chains across different industries and ensure stability. This could reduce the amount of manual work and errors when carrying out complex processes.
The benefits and potential use cases of blockchain technology are endless, even though lots of people are limiting it to cryptocurrencies. It is no surprise since that is where blockchain got its popularity. However, as more people begin to understand how it works, new and more applicable use cases will be developed. That is why even those who are not directly involved with cryptocurrencies need to understand blockchain. This is because it may be integrated into business processes in some other way.
Since blockchain is still a relatively new technology, many people have mixed feelings and reviews about its potential.
Research by TechRepublic shows that 70 percent of participants had never used blockchain. Also, 64 percent mentioned that blockchain might transform their industries positively.
A report from Gartner, which is one of the best trend report analyst firms, states that:
- By the end of 2022, just 10 percent of companies will get any positive transformation through blockchain.
- At least one company whose business process is based on blockchain technology will be worth $10 billion by 2022.
- Blockchain business value will increase to more than $360 billion by 2026 and to more than $3 trillion by 2030.
The domain projected to have one of the most promising growth in terms of blockchain technology is cybersecurity. Data tampering is a great challenge faced by almost all businesses, and blockchain technology provides a solution to that problem.