Is Blockchain All About Cryptocurrency?

Written by Kevin Liew on 28 May 2021
4,002 Views • Crypto

The mainstream learned about blockchain when it learned about crypto when it learned about bitcoin when it learned that in March 2021 it reached a peak of $50+k. What most don't know is that Blockchain, the technology behind it, is more than just for making Doge coins.

The simple skeleton of bitcoin is essentially a framework maintained over several computers. Each of them part of maintaining the integrity and security of the whole. Input must be approved by each node that runs it against the overall chain to ensure its legitimacy. Now, this does pose a lag in time (often around 7 transactions/sec compared to thousands on traditional servers). The blockchain’s ability to interlace multiple servers into one decentralized network is what differentiates it. 

Bitcoin fell under the “Peer-to-peer” aspect of blockchain’s uses, but there are 7 other applications. Which Entrepreneur.com summarized as, supply chain management, quality assurance, accounting, smart contracts, voting, stock exchange, and energy supply. Within the uses, we can make break it down into 2 categories, recording or automation.

The simplest use of blockchain is through the recording of information, just with the stronger security of a chain. Voting, supply chain management, and quality assurance all fall under this application. With voting the application is obvious, using a government-issued key the user could vote in elections from theoretically anywhere. Cutting down on the long lines and increasing participation while verifying voter identity. Supply chain management and quality assurance would often use the same chain. Every point in the process will be recorded so that firms know what happens to their products every step of the way including where they currently are. If anything is not satisfactory or management might want to make changes all they would need is to check the ledger.

A more advanced blockchain application would be automation. Such as in accounting, stock exchange, smart contracts, and energy supply. What a blockchain could also do is initiate some response to an entry. In accounting, this could be to automatically apply for the necessary debits and credits whenever any money is exchanged with an account on the network. A smart contract would only run when a party completed a part of the agreement as verified by the network. Electricity could be revved up or throttled in the grid depending on predetermined inputs. All done securely, verified neutrally, and traceable.

Speaking of energy supply, we recently read an article about utilizing lasers to beam charge into drones so that amazon could have a long-distance drone delivery network. Blockchain we feel could help add automation to the design and improve timing. This would allow a mounted laser to target a drone in need of a charge. The potential drawback would be if blockchain’s current processing of 40 bytes would be enough. A more realistic starting point would be drones stopping at specific nodes and scheduling the lasers to relay a scheduled charge.

Blockchain does not exist for a single purpose, it stands to be the next standard of computer structure much the same way it transitioned through floppy discs, hard drives, wired servers, cloud computing, and now blockchain. That is what I believe to be our blockchain future.

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