Blockchain is easier to understand when you know how it is used in various industries.
It is not surprising that many still believe that blockchain technology is limited to cryptocurrencies.
After all, the entrance of the blockchain into the mainstream has been catalyzed by the grandfather of cryptocurrencies – Bitcoin.
But what is Bitcoin? In 2008, an unknown person (or people) named Satoshi Nakamoto published the Bitcoin white paper that laid the foundation for the first peer-to-peer, unparalleled virtual cash system.
Nakamoto set out to create a decentralized digital currency as an attempt to solve many of the issues faced by traditional legal currencies and banking systems, including low-speed and high transaction fees.
Bitcoin, as claimed by many experts, also has the ability to address the most profound problems inherent in centralized systems, such as fraud / counterfeiting, inflation and monopolies.
And as Bitcoin gained popularity, so did the ideas for blockchain application in a wide range of companies.
What is blockchain?
Blockchain is a decentralized digital ledger, openly shared and distributed protected by cryptography.
Blockchain challenges conventional centralized models by offering a cheap, efficient and secure trade, but also without the need for intervention by intermediaries or central authorities.
In addition, each transaction is marked by time, making the register controllable and practically tamper-proof.
One of the unique characteristics of blockchain is that it is managed by participants who contribute to maintaining the network. The participants themselves will validate the integrity and authenticity of the data through a predefined consent mechanism.
Put simply, this means that everyone on the network works together to ensure the validity of the data, rather than being controlled by a single person or entity. What is also important here is that there is no single point of error that can occur inside a blockchain.
The technology has been tested and implemented in various sectors and here there are six interesting ones.
Today's supply chains demand an extraordinary amount of diligence when it comes to tracing the goods as it passes from the supplier to the factory to the shipyard.
Because of trust, supply chains are susceptible to human error, regardless of whether it is accidental or harmful.
At the end of last year, the leading Walmart retailer worked with IBM to work on the Hyperledger Fabric blockchain for tracking food from the supplier to the shelf.
Thailand Post is trying to implement blockchain technology to improve its supply chain and processes, from stock to delivery and all the rest.
Blockchain will allow the use of automated tracking and verification systems in real time, which will improve the efficiency of the state postal service.
Luxtag has created a decentralized app to combat counterfeiting and intellectual property theft so that anyone can protect their precious assets through the NEM blockchain.
Through its digitized authenticity certificates, it is able to protect all types of products from bags to vehicles.
The Malaysian artist Poesy Liang and Luxtag have recently collaborated to implement a blockchain solution that authenticates and records the provenance of Liang's art works.
With over a third of the Philippines surviving less than US $ 2 (RM8.20) a day and with little or no access to banking services, the government needs a solution that does not
The i2i project aims to connect rural banks that have been excluded from major payment networks using smart contracts via blockchain technology.
The objective is to create a decentralized, cost-efficient and fast payment network that does not depend on existing payment infrastructures and other intermediaries such as Swift.
Banks will potentially be able to issue digital tokens that will be supported by the Philippine pesos, essentially forming cryptocurrency.
Electoral fraud is widespread throughout the world, particularly in developing nations.
Blockchain is an excellent tool to tackle this serious problem because it can make anonymous votes and at the same time guarantee greater security.
A project known as Agora has already built a digital voting platform for governments and organizations to use.
Fraud on identity
In 2017, 2.6 billion cases of identity violation were recorded worldwide, according to the Index of the level of violation. Identity theft accounted for only 69% of all data breaches.
Because blockchain is tamper-proof by design and makes verification painless, it's easy to see why it's great for preventing identity theft.
Civic is an identity verification platform that uses multi-factor authentication without requiring passwords or user names, as it combines biometric authentication with blockchain technology
But there is more in the blockchain since the technology is still in its infancy.
You can learn about the potential of Blockchain and how transformation activities are going at Blocfest 2018, scheduled at Hotel Shangri-La, Kuala Lumpur, on September 26th and 27th.
You can also network with people who are developing blockchain-based technologies during KL Blockchain Week, September 24-27, which also includes a hackathon.
Those interested in participating can get 40% discount on VIP tickets at the price of US $ 450 (RM1.860) or regular tickets at the price of US $ 375 (RM1,550) by entering the promotional code BLOC40D during checkout but this offer is only available for a limited period. Visit www.blocfest.asia for more information.