Use of Blockchain

Overview

Blockchain technology is a shared database that keeps track of a given collection of transactions. Groups of transactions comprise a block, the contents of which can never be changed. Each block is timestamped and joined to the filled block before it with another block joined behind it when it becomes filled with data, forming what is known as a blockchain. Its most common use is as a distributed ledger wherein all participants agree on each transaction's "truth" and verify the legitimacy of the transaction before it becomes a permanent record in a block.

Blockchain came into prominence and public attention with the advent of cryptocurrencies like bitcoin, a peer-to-peer electronic money system. Blockchain use cases and industry applications have since expanded and gain popularity in different sectors and industries.

The most popular use cases :

1. Smart contracts. The primary function of computer programs called "smart contracts" is to automate the execution of contract terms when conditions warrant them. The computer code follows a relatively simple command of "when/if _then___" to ensure that all parties receive the benefits or penalties as the contract stipulates and actions require. Smart contracts are useful too, and used by, most industries today for a variety of uses traditionally governed by paper contracts. The blockchain also makes a permanent record of every action and reaction in the transaction.

2. Cybersecurity. Blockchains are highly secure because of their permanency, transparency, and distributed nature. With blockchain storage, there's no central entity to attack and no centralized database to breach.

3. IoT. Two primary IoT uses of blockchains are in the supply chain sector and for asset tracking and inventory management.

4. Cryptocurrencies. The blockchain concept was originally developed to manage digital currencies such as bitcoin. Given the anonymity of crypto coins, blockchain is the only way to document transactions with accuracy and privacy for the parties involved.

5. NFTs. Nonfungible tokens are units of data certified to be unique and not interchangeable. In short, they are digital assets.