Blockchain Technology Innovations to drive future transformations
June 11, 2019
Blockchain Technology Innovations in every industry and vertical is poised to cut out third parties, dramatically improve transparency, and multiply the efficiency of many transactions across the globe. The trend of moving away from hierarchical societies to grouped structures has seen increased adoption since the beginning of the 21st century. Blockchain Technology Innovations are going to accelerate this transition across the globe, unleashing massive social impacts. Blockchain is going to unlock a phenomenon that few human societies have ever achieved before with trust links in vast networks of decentralized control.
Today, the most well-known for the blockchain technology innovation application is in cryptocurrencies. Blockchain technology has the potential to fundamentally revolutionize every industry, including supply chains, healthcare, elections, and real estate.
What Is Blockchain?
Blockchains emerged in the 90s as a way to timestamp digital documents but became much more widely-known in 2009 when it was used to create the now famous cryptocurrency known as “Bitcoin.”
A blockchain is a decentralized data block store shared across a network of computers called “nodes,” that can only be changed after approval from all nodes in the system. This information created in a blockchain is challenging to modify with majority consensus required to alter the information written in the blockchain.
The blockchain contains block which comprises of three components (1) data, (2) the hash, or a digital identity for the block, and (3) the hash of the block created before. Various types of information are stored within blocks, like who is the sender, receiver, and transaction value in a cryptocurrency use case like Bitcoin or Ethereum or Hurify. A block’s hash is generated based on the data within that block, and the hash changes if its data is altered. Also because the block stores the hash of the previous block a change in one block requires changes in subsequent blocks created as well.
Blockchains are designed to be secure for several reasons:
Because each block contains its hash and the hash of the previous block, any change to one data or hash will make the rest of the blockchain invalid.
Proof-of-work is a consensus method that slows the creation of a new block. In the case of Bitcoin, it is 10 minutes per block. This time delay in block creation makes it extremely challenging to recreate a complete blockchain after changing the data of one block.
Consensus models validate all computers seeking to join the blockchain with proof-of-work and proof-of-stake validation checks. Proof-of-work checks require nodes to solve a significant computational challenge that is rewarded with tokens in exchange, which can then be used in proof-of-stake tests to purchase entry into a blockchain.
Three Blockchain Innovation in next five years
In the next five years, we predict three blockchain technology innovations, that will transform all current business models.
As cyber internet attacks continue to every year in new ways, many new forms of identity verification will evolve to protect the identity of people. The self-sovereign identity will allow users to maintain a single digital identity across multiple platforms by giving them the option of choosing the information they wish to share on each. In our view, this mode of interaction would drastically transform the current digital marketplace that has built successful business models to sell user data in various forms.
Blockchain is offering the capability to return the identity to the individual so that the individual will start owning their data and then be able to provide it with based on what’s best for them as opposed to letting companies like Facebook or Google exploit it.
Self-sovereign identity would significantly reduce identity assurance costs as well. For financial services, where Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) are critical, the work will be portable from one bank to another bank, lowering costs. In healthcare, self-sovereign identities will put records of medical history back into the hands of every single patient, and the transparency of permissioned access will become the new standard.
Identity is extensible from persons to items owned by persons like a house; car, gadgets which can have the digital identity of the owner tagged to them.
Everything that you know today that doesn’t have liquidity is going to be fractionalized and tokenized and put on exchanges. Over the next few years, security tokens will start to represent a new form of liquidity in asset category that traditionally has lacked liquidity, such as real estate or art. Also, the tokenized assets will be trading all times of a year 24/7, 365 days a year.
Countries like Malta and Switzerland are taking the lead in developing infrastructure & business models for tokenized assets.
Security tokens are cryptographic securities that serve as an asset that performs a specific action for an owner like voting. Security tokens are also used to pay dividends, pay interest, or even to invest in other tokens or physical or digital assets. Security token smart contracts are designed to automatically pay dividends on a specific date if criteria are met.
Many tokens, in the market, that you might be familiar with are known as utility tokens, and they might or might not represent a piece of a real-world object or actual equity. Security tokens are becoming more prevalent starting this year. Security tokens have tremendous potential to decrease liquidity issues but will require additional infrastructure to support the needed functionality such as their Security Token Offerings (STOs), private exchanges, and unique digital wallets.
Operating as peer-to-peer or point-to-point or person-to-person decentralized “digital ledgers,” blockchains will reduce the spread of falsified information, increase transparency, witness multiplied efficiency in many processes, and cut out unwanted intermediaries across every industry.
In the supply chain industry, blockchain technology innovations will seamlessly record each touchpoint, increasing production transparency for buyers who wish to make more informed buying decisions. For the election process anywhere, blockchain is poised to decentralize the voting process while maintaining fidelity to prevent election frauds. In real estate, the history of property records stored on blockchains will decimate time & money spent in performing due diligence and financial validations.
At the personal level, blockchain technology innovations will allow users to more easily verify individual’s identity, share individual’s health records, maximize the gain from individual’s financial assets, and track the origins of individual’s every purchase. All this transformation only means blockchain will change everything we do like the internet did in the last few decades.
Moreover, at the societal level, blockchains will catalyze a revolutionary shift away from hierarchical structures towards decentralized networks at larger scales than ever before experienced by humankind. A next-generation tool capable of maintaining trust in large populations, blockchain will define a brand new order. Like any new technology, adoptions go early adopters serve as torchbearers for blockchain as well before it gets into mass adoption in the next few years.
- Hurify operates the IoT Blockchain marketplace & BIAT as Hurify Digital Markets in the United States & HUR Technologies in Europe
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