What issues does Blockchain solve?

After having a basic appreciation of what the Blockchain is and how it works, everyone asks about real-world cases and issues this technology solves. Let’s outline the major problems this revolutionary tech may deal with.

Issue #1 Data loss

Most probably, you (or one of your friends) ever faced with the hard disk fails. There are two ways of how things unfold in such a case:

  1. You’ve got a backup of the crucial data. 

That means it’s possible to restore the necessary information. 

2.  You don’t have a backup.

That means you’ve lost everything.

Blockchain solves this issue with its decentralization feature:

  • The data are distributed among the users. 
  • Also, blockchain doesn’t have any central, official repository.

These two points mean that even if a user experiences any hardware of connectivity issues, the system will proceed without him/her. Each time a block is recorded, all the key data is replicated to each user’s machine via the P2P network. And in case of hardware/connectivity issues, the user may simply download the latest copy of blocks and transactions to synchronize with again.

Issue #2 Data corruption

Besides data loss due to hard drive or connectivity corruption, there may be sporadic issues that are usually difficult to diagnose.

It’s like you play an audio CD, and there’s a bit of missing/corrupted data owing to a scratch. The music player often detects that and interpolates the data to bush fix the missing notes. But when it comes to complex life-critical systems, it’s nearly impossible to fudge a problem just like a CD player does.

Blockchain addresses such issues effortlessly: if it bumps into a data mismatch in the transaction ledger shared between two parties, it stops, and no block update requests can distribute across the network after this. For example, this blockchain feature prevents double-spending – cryptocurrency can’t be transferred more than once.

Issue #3 Data security and trust

Data security issues happen not only with hardware or software – many attempts of fraud and data theft take place on purpose.

Blockchain has two awesome features to fight these issues:

  • Immutability.

The blockchain structure grants that it’ll be burdensome to change anything in existing transactions. So, no one can go back and add a couple more million dollars into their account.

  • Distributed ledger

Even if someone changes something in their ledger, this won’t happen in the ledger copies of other users. The blockchain identifies such disagreement and prevents the user from any fraud.

Thus, it’s easy to trust the blockchain – its ledger is public, and all transactions are publicly available. Now think of a traditional bank. What if such a bank makes a mistake? It’ll take a lot of your time and efforts to prove your case since you don’t have access to their centralized ledger.

Now let’s go over a few cases with blockchain technology solving real-world issues.

Case #1 Cross-border payments

The issue: 

  • slow cross-border payments,
  • a lot of intermediaries,
  • high transaction costs.

The solution: 

Blockchain technology eliminates all middlemen in every transaction, therefore, removes the most lengthy procedures and cuts time delays. Thanks to the distributed ledger, the payment may be received within a few seconds after the transaction is recorded (4-6 seconds).

Moreover, Deloitte states that blockchain transaction fees are 40-80% lower than traditional financial organizations offer.

Existing companies using this solution

Ripple, Circle, WeTrade, AirFox, etc.

Case #2 Supply chain management

The issue:

  • fraudulent activities;
  • overhead costs.

The solution:

Blockchain can bring to the supply chain management interoperability and transparency, ensuring that everyone is aligned in these processes – manufacturers, retailers, etc.

Transparency makes it possible to track each product in real-time, and this can reduce the risk of its loss or misplacement.

Existing companies using this solution

Walmart, Openport

Case #3 Identity theft

The issue:

A wrongdoer may steal someone’s data and use it to gain some financial advantage, or even commit a crime and get lost with it!

The solution:

Blockchain offers both transparency and security – while a person has a public key (making some data publicly available) he/she also has a private key securing the data can’t be edited or changed.

Existing companies using this solution

Sovrin, NewBanking

Case #4 Managing EPHI in Healthcare organizations

The issue:

  • EPHI (Electronic Protected Health Information) is stored in centralized systems allowing access to them to a lot of people, which leads to data breaches and leaks.
  • Patients experience difficulties if they decide to switch hospitals – they have to create a new medical record, which is cost- and time-consuming.

The solution:

Blockchain helps create only one medical record and keep it safe in the distributed ledger, allowing secure access for all hospitals. Like any other data in the blockchain, EPHI could not be corrupted.

Also, blockchain keeps all sensitive patient information private, concealing the data which might identify the person. To view such data, a user should have a private key.

Existing companies using this solution

MedicalChain, BurstIQ

Case #5 Digital copyrights

The issue:

The US film and TV industry bear a loss of around $71 billion per year because of copyright infringement because they still use legacy systems and business models.

The solution:

Blockchain can help artists and creators digitize their content metadata (timestamps and Intellectual Property rights) in immutable ledgers.

With blockchain, the creator can safely make publicly available their content, because he/she will immediately know if a copyright infringement occur! The blockchain records every time the content gets accessed or used.  

Existing companies using this solution

Sony

Summary

Wrapping up this quick look at the present-day issues across varied business domains, we can say that Blockchain technology can resolve most of them effortlessly and effectively. If you were thinking about adopting this tech in your organization, let’s talk – we have a solution for you!