Blockchain technology is the most transformational change of the 21st century. It is explained as the innovation bigger than after internet. The financial system has been waiting for a disruptive change since long. Higher cost of transactions, delays in money transfer and inaccessibility of over 2 billion people to the banking system necessitates for a more inclusive and effective financial system.
Blockchain is the most studied technology in financial system. It establishes a trust code between two parties without the need of any intermediary such as banks. Blockchain allows all the participants in the network to share system of records which will provide proof, consensus and finality around transfer of assets within the network. Blockchain technology has potential to address shortcomings to current banking system by streamlining, modernizing and simplifying the siloed design and make the financial system cost efficient and more transparent.
Blockchain technology helps in tracking and managing digital identity of a person leading to reduction in instances of fraud. It offers a solution to many digital identity issues in passports, birth certificates, wedding certificates and other identifications documents. Blockchain replaces the current problematic password based systems to irrefutable identity verification using digital signatures based on public key cryptography. The only check performed in blockchain identity authentication is whether or not the transaction was signed by the correct private key.
Smart contracts are legally binding programmable digitized contracts made on the blockchain. The develop implements legal contract as variables and statements that can release the funds based on specific conditions using bitcoin network as a third-party executor. It solves the problem of intermediary trust between parties to an agreement, whether that is between people transferring assets like gold, property or executing decisions between two parties in a betting contract. By giving computers control over contracts, we can run the businesses more efficiently and equitably.
Security of voter’s data is the most crucial thing during the elections. Blockchain could allow voter to check whether his vote was successfully casted while remaining anonymous to the world. Distributed digital voting is anticipated to encourage non-participants to become a part of elections thus helping formulate inclusive governance. In 2014, Liberal Alliance of Denmark became first political organization to use blockchain for voting. Blockchain technology may soon become a gold standard for all nations to choose the right administrator through voting.
Decentralized electricity supply
With the advent of solar and high capacity battery technology, individuals can potentially act as distributed power providers. Instead of having a centralized power provider which sends electricity to everyone’s house, blockchain will allow people generate their own electricity to sell on the network.