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Blockchain: the start of a technological revolution?

  • Writer: Nikkie Kitching
    Nikkie Kitching
  • May 27, 2019
  • 5 min read

Let's break it down...

Ah data. It's everywhere isn't it? What once started as a simple record done by pen and paper eventually blossomed into a digital entry onto a computer. Over the past thirty years, technology has evolved and proven itself by allowing us to record, send and save vital information needed for businesses and organisations. This is especially useful when it comes to transferring information of value ie. transferring money to a friend or shopping online. But imagine if there was a method whereby you could store data safely and securely through a system of computers and there was a record of every transaction made. This is where Blockchain technology comes in.


This is essentially a digital ledger which helps us record online activity, developing a chain of every transaction that has taken place, hence the name 'blockchain'. What makes this technology unique is that it adds transparency and clarity to what is stored, traced and transferred. It can be accessed and distributed to ensure each party is aware of what has happened from start to finish. Furthermore, it utilises cryptography which are specific codes that ensures the data being inputted is verified and cannot be changed or counterfeited.


To understand this concept a little better, let's have a look at a few examples where blockchain been applied.


Business and smart contracts

Let's take a common transaction. Say you were looking to purchase a house. When buying or renting a property, lawyers, estate agents and banks amongst other parties are involved. Behind the scenes, time and effort is spent on properly drafting and executing contracts and ensuring relevant payments are made to the respective parties. Blockchain aims to remove the 'middleman' so that transfers made between you and the other party are simplified. This is done via a smart contract.


So what makes this different from your standard contract? A smart contract is not necessarily a contract per se but rather a digital document created by code and is tailored to the transaction at hand. You pay cryptocurrency towards your contract, get your receipt and payment is sent successfully to the person who the payment is owed to. If it's the case that the transaction does not go through then the smart contract records this and payment is sent back to you. Certainly, there are more layers to smart contracts but this is basically what happens in layman's terms. A technological algorithm that benefits each party fairly. Encrypted. Efficient. Easier.


Music

The music industry is worth billions. Unsurprisingly, with the technology we have today, artists and record labels are struggling to keep track of their work and effectively monetising it. This is not only true for popular artists like Rihanna and Ed Sheeran but also for the artist that is just breaking into the industry with their first EP.


Let’s take the popular music streaming service, Spotify. A recent study showed that music production companies who are in charge of distributing and selling music take home 70% of the funds whereas the artist themselves receive the remaining 30%. By investing in Blockchain technology, services like Spotify are aiming to ensure that there is a record of songs that are streamed and those who are involved with the song such as singers, songwriters and record producers are effectively paid for each stream. Spotify recently bought Mediachain Labs, a startup company specialising in blockchain, in the hopes of making revenue sharing fair and streamlined.


Healthcare and pharmaceuticals

Let's give blockchain technology a personal touch, shall we? You're not feeling well so you decide to see a doctor. The doctor then realises the ailment you have requires a referral to a specialist. And then that specialist refers you to another and so on and so forth. As much as we're thankful for the medical professionals that cure us, there's no denying that hospitals can be tedious in their timing and administration. Endless prescriptions, invoices, insurance papers and then being told that you'll have to wait another three weeks to be seen by a specialist. With blockchain technology, your GP would be able to access your medical history in a matter of seconds making it easier to identifying what needs to be done to best treat you. Less time is spent finding information and more time is dedicated to helping you get better.


This train of thought expands into the field of pharmaceuticals. As there are plenty of parties involved, from marketing to logistics, it can be difficult to trace how pharmaceuticals go from being created to being delivered to your local pharmacy. Incorporating blockchain technology would mean we have further insight into how this would be manufactured, delivered, tracked and stored securely.


Business, music and healthcare are just a few examples where this technology might prove effective. It has the capability to take over multiple industries.


What are some of the challenges blockchain technology is facing?

As we can all probably agree, technology for the most part is amazing. What we need to keep in mind is that technology is always developing and before it can go from 'good' to 'great', it is essential to address the bugs along the way. Take Apple for instance. Every now and again we need to update our software to the latest iOS. This is the same with Blockchain technology. Something that is due to take over thousands of computers will require several updates to ensure any viruses or bugs are detected and dealt with.


In a blockchain, a 'block' is added to the chain every time new activity takes place, meaning more information is then stored onto the database. Data build up can also mean that computers start to use excessive energy, most likely making other programmes and applications far slower. This would call into question the amount of storage we would need to hold this information. Furthermore, we would need to figure out a clever solution as to how this technology would be regulated as it continues to grow.


The challenges listed above are by no means exhaustive but helps us to determine further issues that may arise and bring about questions that might not have been asked yet.


Final thoughts

Whilst we are only at the preliminary stages of blockchain technology, some have already deemed the digital phenomenon as "internet of value". With its various application to a number of industries, it’s exciting to witness the emergance of blockchain as it makes its way into the spotlight. Naturally, there are plenty of questions to be asked but as with any technological movement, trial and error is key to success.


For more information on blockchain technology, check out the following links below:

 
 
 

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