Bitcoin, the pioneer digital currency, has risen, fallen, and risen again, spawning a host of new cryptocurrencies with varied degrees of stability and validity in the process. Like Bitcoin, which is also the first functioning implementation of blockchain technology, these cryptocurrencies rely on their own proprietary blockchain to store transaction data.
Distributed in nature, a history of transactions is recorded in each data block, connected together like a chain. It is also innately decentralized as there is no centralized server, and it is not managed by a single authority figure. Instead, all nodes or miners on the network govern the blockchain, meaning all nodes must agree before any kind of change is made on the blockchain. This makes data recorded on the blockchain immutable.
Bitcoin and other cryptocurrencies are all built on a blockchain, but many have begun to investigate other potential uses for this secure ledger technology. Blockchain has proven to be a very useful tool for keeping track of information, enhancing data security by creating a record that cannot be altered and is encrypted end-to-end, providing greater transparency as transactions are immutable and are a time-stamped which allows members to see the history of every transaction and delivering automation through “smart contracts” which increase process efficiency by reducing human intervention and reliance on third parties to ensure if the terms of a transaction have been met.
These were emphasized at the Southern California Blockchain Summit – a blockchain event that aims to share blockchain utilities in music, retail, food, and entertainment industries – held at the Hollywood Roosevelt in Los Angeles. As part of the summit, the world’s leading blockchain distribution channel SmartLedger held an exclusive informational luncheon to highlight the importance of blockchain in different industries.
SmartLedger is in partnership with Switzerland-based BSV Blockchain Association, a global industry organization that pushed for the adoption of the BSV Blockchain. The BSV blockchain’s limitless scalability makes it ideal for enterprise-level use cases requiring huge numbers of transactions per second, low, predictable fees, the ability to make micropayments, and a larger storage capacity. Smart contracts, tokenization, administration of IoT devices, computing, and more are made possible by its robust technological capabilities.
“I think there’s a lot of opportunity for people to take hold of this technology and implement it to potentially disrupt their competitors,” Shawn Ryan, co-founder and CEO of SmartLedger said.
When developed properly, blockchain can improve methods for controlling decentralized power grids, keeping tabs on the movement of regulated goods, keeping tabs on the devices that make up the ever-expanding “Internet of Things” (IoT) – connects physical things with sensors, computing power, software, and other technologies to other devices and systems through the Internet or other communications networks — and even providing a more rapid and accurate traceability process that can expose weaknesses in the supply chain for further improvement.
At present, businesses and governments alike are actively exploring blockchain applications. For instance, in order to readily identify the origin of salmonella infection or other epidemics, Walmart and IBM have announced plans to collaborate on developing a blockchain-based system to trace the distribution of lettuce.
Some insurers are also exploring the use of blockchain technology to verify policy coverage in
order to lessen the incidence of fraud and save on operational expenses. The United States Food and Drug Administration (FDA) has launched a blockchain pilot program to track pharmaceutical prescriptions.
Blockchain applications are bound to increase. These include IoT, which is seen to have an increasing number of gadgets that are notoriously easy to hack. One reason for this is that hackers may often discover and take advantage of software flaws before either consumers or developers notice anything is wrong.
Blockchain technology could potentially provide the solution. If its ledger cannot be altered, then it will show every interaction between smart devices, including any intrusions by hackers. Each block comprises a transaction or group of transactions, and the data is organized into blocks. A cryptographic chain is created when a new block links to the previous blocks in the chain in a way that makes any alterations to the chain extremely difficult. A consensus method verifies and confirms the validity of all blocks and their included transactions, guaranteeing the integrity of the ledger.
Through all of these, Ryan believes in the transformational power of blockchain on industries, not just on cryptocurrencies: “The key takeaway that is most important for me is that we’re starting to differentiate between crypto (assets) and blockchain. I think it’s key to understand that blockchain technology is the extremely disruptive part of the crypto side.”
More of these will be demonstrated at the London Blockchain Conference from May 31 to June 2 as insightful and engaging panels, presentations, and keynotes showcase how to transform industries with blockchain.
