Why say that the concept of the block chain is much more than encrypted currency?

In the past few years, we have seen how the block chain is very popular in the finance and investment community. Interestingly, this technology can not only be used in encrypted currencies, but also in other areas such as healthcare, logistics and government.

The block chain is a mechanism for creating a distributed book, which is impossible to be invaded or changed. This distributed database is allowed to participate, view and audit the data contained in each block. Data on the block chain cannot be modified, which makes this system very valuable. A variety of information can be placed in these blocks, while powerful encryption techniques protect them from being leaked.

Development process of block chains

Over time, the development of the block chain has experienced important phases. In the first phase (around 2009), Zhong Hongxian used the block chain for his bitcoin network. It allows for establishing a basic premise of maintaining the shared books of the encrypted currency network. Each transaction is approved during the verification process of multiple computer members of the entire network, and then add blocks with this information to the chain. This breakthrough innovation means a powerful trading network without a central organization.

Time flies, the second phase of the block chain begins, thank you to the concept of the intelligent contract in Email. It allows developers to write and run programs within blocks. For this reason, various trust protocols are self-managed and do not require external entities. Programs within the block can monitor every aspect of the protocol, from its start to it. With this technology, the block chain can be used for identity management, supply chain, real estate, etc.

Not just encrypted currency

Today, the intelligent contract has opened a world that is full of possibilities, we can currently create security and detrimentary applications. More and more companies have been undergoing different MVP or based on the initial development of the block chain. There are five widespread applications about the block chain:

First collection

CO is a digital prefectural financing model using intelligent contracts and encrypted currencies. It becomes a popular way to raise funds for products and services. The 2017 US $ 5.3 billion ICO boom challenges the traditional venture capital. Many companies are using this model to raise funds for their projects.

2. Insurance

The insurance industry spends tens of millions of dollars per year to deal with the claim. Not only that, but it actually lost millions of dollars due to fraudulent claims. Intelligent contracts can also help improve claim processing in many ways.

3. Vote

The block chain can be used to verify the identity of the voters and record their vote. This information can then be used to start a action after all votes are stopped. Since the block in the block chain is not changed once it is recorded, it will be impossible to manipulate this record.

4. Transportation and logistics

Transport and logistics sectors are becoming more and more digital, as supply chain management and visibility are still as important as before, and both of them can be improved through the block chain. Retail companies like Wal-Mart have been using this technology to conduct food tracking.

5. Automation payment

Digital payment refers to the day-to-day payment through the intelligent contract based on the block chain. Intelligent contracts allow automatic processing to be automatically processed during certain predefined conditions. These conditions may include automatic payment when the new contract is approved or when the goods are shipped and received.

Block chain’s future

All in all, the block chain is a very promising technology that is beyond the encrypted currency and enters the commercial and more mainstream application. Although this technology is still in its infancy, it will definitely become more mainstream as companies better understand how to apply the block chain to their services and products.