Where blockchain is used - the use of blockchain technology in various fields. Where is blockchain used? Application of blockchain technology in business

However, this concept has long gone out of the narrow circle of professionals, and now many operate with it. If you still have not figured out what it is, read our article, where we will talk about the blockchain in simple words.

Intermediary businesses complicate life, hinder operations, and waste our time. Take, for example, a bank - not only will many transactions require personal information, but you will also spend a lot of time and money - banks live on interest from the finances spinning in the system.

During globalization, the emergence of cryptocurrencies and blockchain is natural and justified. Those who are “in the know” call this system the breakthrough of the century and a new step in the development of society. Those who are not privy to the nuances of the crypto world are wary of blockchain, bitcoin, mining and cryptocurrencies, expecting that the “soap bubble” will burst any day.

Let's say you keep a personal accounting diary. You write down in it what you did, how you spent money, how much you earned. Usually this diary is available in one copy.

It is different with the blockchain - transaction records are encrypted, and the diary itself (its copies) is simultaneously stored by all your friends. The entries in it are constantly updated, the information is up-to-date, and there are no risks of losing the diary - you can restore it again.

Blockchain (translated from English as “chain of blocks”) is, in simple terms, the same diary or database that is presented in the form of blocks that are stored on a large number of computers. New elements appear constantly - as information accumulates. Each block contains all the accumulated information (that is, transaction records).

Security, decentralization, availability of data at any time of the day and anywhere - this is the blockchain.

Blockchain: why is it needed

All information about operations, transactions, payments and other actions is stored somewhere. Most often, these are servers of banks, government organizations, and enterprises. This information can be changed, which is used by unscrupulous people. Blockchain technology or a chain of blocks, if you need a translation from English, is much more reliable. The transaction history is not stored in one place - it is distributed across thousands of computers in the world. It is more reliable to store data in this form - they will not disappear, they will not be lost, they will not disappear.

This is the point of blockchain - to create a data storage system that would be transparent, safe. The system has the main features:

• Safety;
• openness;
• Distribution.

All information in the system is encoded, and it is unrealistic to find a code - it is too complicated, and it is not economically feasible.

To steal or change data, you will have to not only decode and change the data on one server or computer, but on all that are included in the system. Another option is to have control over 51% of Bitcoin mining power.

Considering that there can be several hundred thousand or several million computers, it is almost impossible to change information on all devices. Even in the signature there are two keys - public and private. Only the key allows you to open access to the participant's data.

Digital data is distributed in chains without the need for copying. This quality has led to the fact that blockchain technology has become the foundation of a new type of Internet. Blockchain was originally developed as the basis for the bitcoin cryptocurrency, but digital technology experts predict a great future for it, finding new prospects for use.

Let's take another example - Wikipedia. It was created not by one user, but by many, and everyone can enter new information into it, monitor it and control the entries. Something similar exists in the blockchain: blockchains are not the product of the creation of an individual, but the result of the actions of people participating in the network. This is the principle of distribution - each participant is both a creator and a controller.

The essence of blockchain technology

What is the bitcoin blockchain? Within a network, a table is created that is repeated many times (millions and thousands) on computers connected to that network. Each computer monitors the information and can control it, however, an attempt to change this table on one computer will immediately be revealed. This will immediately be noticed by other users who store an unmodified table. The network is protected from scammers and falsifications.

Openness of information for network users is the principle of this technology. An important advantage of the distribution has become. Yes, sometimes you can hear that the National Bank after some time will become a kind of guarantor, acting as an intermediary, but in practice there is no place for an intermediary.

How the bitcoin blockchain works

Despite the abundance of information, dealing with blockchain, even if it is explained in simple terms, is quite difficult. What is the very essence - it is easier to consider with an example.

• You have some amount of money that you want to send to your friend from Russia to the States. You can use the bank, but it will charge you a commission, and most likely a lot, and besides, it will take time. If you don’t want to wait a week or overpay interest, use the blockchain.
• You create a wallet and buy bitcoins for the required amount. Your friend also creates a wallet to which you will have to send the amount in bitcoins.
• Miners create a block that contains transactions. It lines up in a chain. To create, the hash of the previous block, the hash of all transactions and the nonce variable are used. These values ​​are run through a certain algorithm, and the output is a hash of the new block. This is how the mining process works.
• The transaction is confirmed, and your friend receives bitcoins for the required amount to his wallet. Bitcoins can be converted into fiat money, exchanged for another cryptocurrency (altcoins). The main point is that the blockchain made it possible to quickly transfer money.

The amount of the commission can be different - its amount is set by the creator of the transfer. A transaction with a small commission is slower - after all, all miners are interested in a larger reward, they set up equipment with a priority for the largest commission. To ensure that transactions with small commissions are also transferred quickly, the block structure allows only 10% of super profitable transfers to be processed.

What you need to know about hashing

Above we wrote about hashing, but this term was not considered in detail.

Hashing is a basic element of cryptography, without which the entire operation of the system would not be possible.

Hashing is a check of the integrity of a digital or alphabetic message and is performed using a special algorithm. By running a message through this algorithm, the system participant hashes it, as a result of which it receives a hash. This hash is a kind of code, which consists of 60 characters - letters or numbers.

The hash is sent along with the message to the recipient. The recipient runs it through the same algorithm, that is, decodes the message. It turns out a hash identical to the one that was sent to him earlier. This encoding (in other words, hashing) confirms that no changes were made to the message. Hashing is an irreversible process. The message cannot be dehashed. If the message has already been received and acknowledged, it cannot be hashed again.

Bitcoin founder Satoshi Nakamoto (by the way, it is still not clear whether this is one person or a group of people under a pseudonym) decided to connect the hashes into a chain, having received a chain of blocks.

Blockchain transactions and the role of private keys

Above, we talked about creating a bitcoin wallet, but in fact, what is considered a wallet, as such, is not. If we talk about a WebMoney wallet or other virtual currency, then bitcoins are stored in the blockchain according to a different principle. There is no control over the financial balance. But how does the system know if you have enough funds to send, for example, 100 bitcoins to your friends?

Let's take a closer look at how transactions take place. The amount of bitcoins is only in your wallet, that is, it is recorded only on your phone, for example, in the form of a hash. Blockchain does not know this information - it does not store it, does not record it, does not check it. If you need to send 100 btc to someone, the blockchain network will look for receipts to the wallet so that the amount of receipts is 100 bitcoins. Let's say a thousand transactions of 0.1 bitcoin came to the wallet - the system will add up these transactions, receive the required amount and understand that you have enough funds that you can send to whomever you want.

Development of Blockchain Technology

Miners, processing transactions, issue new blocks and a new portion of bitcoins, for which they receive a reward. Simplicity and the ability to get cryptocurrency almost out of thin air are the main reasons why bitcoin and blockchain have become so popular.

Blockchain or the chain of blocks, as the translation from English says, has positioned itself from the very beginning as a simple, transparent and fast technology. Her ancestral home is Japan, and only then she came to other countries. Initially, it was conceived as a confrontation with an imperfect banking system, so the developments are mainly used in the field of finance. However, if earlier only narrow specialists worked with it, today this technology enters our life by leaps and bounds, and it will no longer be possible to dismiss it. And is it worth it? Many modern economists believe that blockchain is the future, and we find a reflection of this in the news of the world of cryptocurrencies.

Security, speed, openness of transactions and the principles of anonymity have led to the fact that even representatives of states and government agencies can no longer close their eyes to the blockchain technologies used in cryptocurrencies.

And abroad, virtual money is used not only for transactions, but also for the purchase of almost any goods:

• online stores Amazon and eBay;
• some restaurants of the Subway chain;
• for cue ball you can buy a ticket for airBaltic planes;
• in Cyprus, you can pay for education with crypto;
• Dell was one of the first to accept payments for equipment with cryptocurrency.

The difference between ethereum and bitcoin

And - the main crypto-currencies, which, probably, every advanced Internet user has heard of. Someone considers them competitive systems, someone - analogues. Ethereum and bitcoin are constantly compared in terms of profit, capitalization and popularity. Today, bitcoin wins by a margin, but the situation may change. In the Bitcoin and Ethereum blockchain, the distributed consensus method is used, it is the miners who, thanks to PoW, ensure the security of the network.

What is the Ethereum blockchain? Everything is more complicated with Ethereum, it was originally created as a platform that was supposed to surpass Bitcoin. Ethereum is a kind of ecosystem for integrating new decentralized applications, a kind of service complex and the basis for creating a software product with the ability to mine ether coins.

New technologies have room to develop, and the natural rises in cryptocurrency rates confirm the fact that, and over time, it will only gain momentum. There is confidence that soon we will see it in many areas of our lives, not only in the financial. Widespread distribution is only a matter of time. Very soon, every student will know about blockchain technology.

What are the advantages of blockchain technology? How does blockchain technology work? What are the applications of blockchain technology?

Optimists believe that in the not-too-distant future, blockchain technology will rid the world of bureaucracy, corruption, dishonest elections, internet scammers, and broken contractual obligations. Blockchain will save us all, and the era of prosperity and prosperity will come on Earth.

I do not know how justified such rosy forecasts, time will tell. So far, one thing is clear: blockchain is a truly revolutionary, fundamentally different way of storing and transmitting information over a network, which has a lot of options for practical use.

This is Denis Kuderin, an expert of the HeatherBober resource on financial and economic issues. I will tell, what are blockchain technologies what are their benefits and how do they work. And I will also try to dispel the most common misconceptions and myths about the blockchain and explain why bitcoin is unlikely to replace traditional money in the next 10 years.

1. Blockchain is the technology of the future

If you still do not know what blockchain is, you are behind the times. Only lazy people don’t talk about blockchain now. True, not everyone imagines what kind of technology it is and what it is eaten with. They only know that blockchain is somehow related to bitcoin but it's hard to say exactly how.

Well, this article will dot the “e” and help you understand the essence, principle of operation and applied meaning of the blockchain.

Literally from English, blockchain translates as " block chain". The translation quite accurately reflects the essence of the phenomenon. Blocks of information are collected in a serial circuit and protected by cryptographic encryption.

Chains of information are not stored on some separate server, but exist simultaneously on all computers connected to the network.

It is believed that the widespread introduction of blockchain technologies will change the whole world. Why? It's simple - thanks to the decentralization of the block chain, it cannot be changed - that is, hacked, faked, and generally controlled in any way.

Simultaneously there is no need for intermediaries when making transactions and any other transactions related to the transfer of valuable information. Information is transmitted via the peer-2-peer protocol - from user to user.

At the same time, each participant has information about other participants, as well as access to the entire history of transactions made in the system.

Information is immediately on all computers - participants in the blockchain network

Blockchain - self-sufficient, but at the same time extremely open structure which does not require third parties. It was this goal - the absence of intermediaries - that the creators of bitcoin pursued when they developed a protocol for transferring cryptocurrency from user to user.

Digital money is transferred over the network without the participation of assistants, which means that there is no need for the services of banks and payment systems. At the same time, only its owner has the right to control the blockchain wallet. The money is not held by third parties (banks), and no one controls your expenses and operations.

Not only monetary transactions, but also any other operations in which there is a risk of non-fulfillment of certain conditions by one of the parties, will be protected and secured by the blockchain procedure.

The areas of use of the "chain of blocks" are diverse and numerous:

• money transactions;
• commercial contracts, agreements, transactions;
• purchases of services and goods;
• transfer of confidential information;
• insurance;
• protection and transfer of property rights;
• personal data management;
• archiving official documents;
• intellectual property protection.

Blocks are linked into a chain using complex mathematical algorithms. Each new block is attached strictly to the previous one, has a unique signature and timestamp. Adding a new link to the chain is confirmed by each member of the system and leads to an automatic update of the registry.

If a new block occurs, information about it appears in all databases. To break into this system, you need to gain access to more than half of all computers involved in the network, which is technically unlikely.

The attitude of government and financial institutions to the new technology is ambiguous. Governments fear that out-of-control deals will make life easier for illegal traffickers in weapons, drugs and human organs. Banks, exchanges and payment systems are afraid to be out of work - if intermediaries are not needed, who will pay them?

At the same time, financial companies are showing a huge interest in the blockchain, intending to make this technology work for them.

More than 40 largest banks even united in a consortium entitled R3 aimed at large-scale blockchain research. Members R3 believe that the “chain of blocks” is not an unequivocal evil for banks, but on the contrary, it is an opportunity to reduce costs.

In particular, bankers are not against completely transferring interbank payments to a blockchain-based basis and completely abandoning the current system. SWIFT.

In Russia, the attitude towards blockchain and cryptocurrencies is ambiguous. The government either proposes a complete ban, or calls for studying. The Ministry of Finance - for the criminal responsibility of persons using cryptocurrencies, and the head of Sberbank German Gref, as well as the head of the Central Bank Elvira Nabiullina publicly support new technologies.

Resisting progress is costly. Blockchain is already in operation, this must be taken into account, it must be used in one's own interests and for the benefit of all mankind.

Interesting facts about bitcoin and blockchain in this video:

2. What are the benefits of blockchain technology

The system has many advantages - it is decentralized, almost impossible to hack, and all information that is formed into blocks is automatically encrypted.

At the same time, the data that enters the blockchain cannot be changed retroactively - in theory, they are stored there forever and not on servers, but on each computer at the same time.

The dissemination of information without copying is already called by many new internet or internet of value. To get a general idea of ​​the technology, imagine a huge a database that is duplicated thousands of times in the network and is regularly updated when new blocks are added to it.

Such a structure has a lot of advantages - let's talk about them in detail.

1) Transparency of transactions

The blockchain network is in a state of constant consensus- that is, it regularly checks itself by conducting a kind of digital ecosystem audit. At the same time, all data embedded in the network remains transparent - information about all operations is available to each user.

For example, to see the entire history of bitcoin transactions, just go to the resource blockexplorer- information about all transactions and transfers of this cryptocurrency is stored here.

2) No central server

Due to the lack of a centralized repository of information, it is almost impossible to take control of the blockchain system– to change the data at once in the entire network, you need unlimited computing power. The base is distributed among all participants, which means that it remains almost invulnerable.

This is a radically new approach to storing important data. Now any significant information is stored somewhere. You bought a house, a car, registered a marriage, took out insurance or transferred money - all information about these operations is recorded somewhere on the servers.

And any server can be hacked - any hacker will tell you that. And people who have access to the data can get into the database and change the information.

The high security of information in the Blockchain system is explained by the fact that data is stored simultaneously on all nodes of the system

Blockchain is built on a radically different principle - information is distributed across thousands or even millions of computers: it is almost impossible to get into all the nodes at once and change the data.

3) The presence of a complete copy of the database for each user

Since each member of the blockchain network has an updated copy of the database, there is no need to coordinate information with other users.

When a new transaction is entered into the chain, it is confirmed by all participants in the system. The chronological order of block distribution, as well as the data itself, cannot be changed.

The access key to a specific block of information (for example, to) is only available to its owner.

4) Fast and accurate transactions

A decentralized system with built-in hack protection allows you to conduct transactions quickly, accurately and without intermediaries. Banks, exchangers, payment systems, notaries are no longer needed - the authenticity of transactions is verified and confirmed by all participants in the system.

Increasingly popular in business are based on the principle of accuracy. smart contracts i.e. smart contracts. In an ordinary contract, the obligations of the parties, the conditions for the implementation of the agreement and the consequences of a breach of the contract are indicated. There is always a risk that some won't get paid and others won't get what they wanted.

A smart contract is based on a different principle. Such an agreement is executed only when certain conditions are met (the “if…then…” principle). It is impossible to break a smart contract, as well as change the conditions retroactively.

5) Data encryption

The data that is formed into a block is encrypted automatically. Cryptography is a guarantee of complete data security. Hashing in blockchains guarantees the irreversibility of the entire chain of transactions, and digital signatures and keys of two types make the information inside the blocks inaccessible to outsiders.

3. 5 ways to apply blockchain technology

In theory, the technology is applicable to any type of activity where there is a risk of fraud, distrust or errors in data transmission.

Consider the most promising and effective ways to use the blockchain.

Method 1: Administering networks

Blockchain plays a role in this case. invulnerable keystore and user lists who have the right to access any data - servers, terminals, ATM networks.

The technology protects against hacker attacks, server errors, network hacks and eliminates the problem of " single administrator».

Method 2: Store digital certificates

Cryptography reliably protects information from unauthorized reading, modification, distribution. Since certificates are not stored on servers, but on the network, it is impossible to gain illegal access to them, as well as to intercept user passwords.

Method 3. Confirmation of ownership

Confirmation and transfer of ownership will become simple, almost instantaneous and secure operations if blockchain technology is applied to this area.

It is enough for a person who has access to his block to enter new information into the blockchain, and information about ownership will be distributed throughout the system.

Method 4: Create a DNS system

With the help of blockchain, the distribution of names in domain networks will become absolutely secure. None DDoS attacks will no longer be afraid of ordinary citizens, financial or government organizations.

Method 5. Identification and confirmation of access rights

Already, some advanced companies are using blockchain to identify their customers, employees and system users. The use of the "chain of blocks" is much cheaper and more efficient than any other methods of data protection and confirmation of access rights.

Blockchain Applications – Pivot Table:

4. How blockchain technology works – 5 main steps

The principle of operation of the block chain will become clear if we consider it using the example of a monetary transaction in cryptocurrency.

Since digital money is just blocks of information, the algorithm will be relevant for any blockchain operations.

Stage 1. Deciding on the transaction and transferring it to the network

You have a bitcoin wallet, and you want to pay with cryptocurrency for a purchase in an online store that accepts digital money. You make a decision to execute a transaction and communicate your decision to a peer-to-peer network.

Stage 2. Transmission of the operation to the P2P network

The operation enters the computer network using special algorithms. The cryptographic encryption of the transaction is automatically launched and a new unique block is formed, which contains a link to the previous link and a timestamp.

Stage 3. Validation

The new block is sent for verification to all nodes of the system, while each node enters it into its database. The chain is updated, which is automatically and simultaneously reflected in the general ledger.

The procedure for confirming a transaction and user status is called validation.

Stage 4. Transaction confirmation and creation of a new block of data

After confirmation, the new data block takes its unique place in the chain and becomes its full-fledged part. Information about the operation is available to all users, but the content of the block itself is only to those who have the private key.

Stage 5. Adding a new block to the chain

The recipient of the transaction receives bitcoins to his wallet, which is confirmed by both participants in the transaction. Each such transaction is a separate block, which becomes a full-fledged link in the chain. The authenticity and uniqueness of the new block is confirmed by all network participants.

5. 5 myths about blockchain - is it really so reliable

Despite all the advantages of blockchain technology, it is still far from perfection. Application in practice is associated with a number of difficulties and limitations..

In addition, there are several persistent misconceptions about the blockchain that are not true or only partly true.

Myth 1. Blockchain is forever

It is believed that the information recorded in the blocks remains there forever. In theory this is possible, but not in practice. Growth in hard drive capacity just hasn't kept up with the growth in chain volume yet.

In addition to the fact that the databases must be stored, applications for using the same cryptocurrency must also be downloaded to a computer if you want to use a full-fledged wallet.

Everyone who has done this at least once knows that this process takes more than one hour. And not even one day. It is easier to use an online wallet, but then it will no longer be a blockchain.

Myth 2. Blockchain is a giant distributed computer

Not exactly like that, or rather, not at all like that. There is no distribution of functions and synergy. Data is simply duplicated many times. Each node in the system does the same thing - it checks transactions, writes them into blocks, and stores history.

Myth 3. Blockchain will completely replace conventional money

Alas or fortunately, but this is still far away. The Bitcoin system is able to process in a second maximum 7 operations. And transactions are recorded only once every 10 minutes. After that, you need to wait another 50 minutes to be sure.

The Bitcoin system will not yet replace the money we are used to, because so far the transaction processing speed allows only 7 transactions per second

It takes hundreds of times less time to pay with ordinary money. The same Visa system performs thousands of operations per second and is capable of increasing capacity if necessary.

Myth 4. Blockchain is decentralized and therefore indestructible

Formally, this is true. blockchain does not have a single center. But on the other hand, miners - those who support the operation of the system - are united in pools.

Miner communities are usually located somewhere in one location (for example, in China). This circumstance greatly simplifies the task of potential attackers who plan to destroy the bitcoin system.

Myth 5. Blockchain openness is good

It depends. Anonymity is anonymity, but if Vasya transfers money to Petya, whom he personally knows, no pseudonyms will help here. Petya will know about all Vasya's financial transactions and vice versa.

For individuals, this is still tolerable, but for companies to disclose their financial affairs to outsiders is extremely inappropriate. All transactions with contractors, customers, sales and purchases will become known. And then goodbye trade secrets.

6. Conclusion

Blockchain technologies are the future of mankind. But while modern computers are not able to provide blockchains with computing power in the right amount. Therefore, the widespread implementation of the system is still far away.

Question for readers

In your opinion, which cryptocurrency is the most profitable to invest in today?

We wish you financial well-being in any endeavors! Comment, share experiences, ask questions. If you liked the article, tell your friends about it on social networks. See you soon!

Blockchain is a technology that everyone is talking about right now, even housewives, newspapers and magazines write about it. If you forget about the hype and do not add blockchain to the project for the sake of blockchain, then its use will not always be justified. We are lucky to be faced with just such a situation. We were contacted by one of our major customers - a company providing services of a platform for electronic public procurement.

Task

Solution

Multichain was chosen as the technological base of the project, since this platform was originally designed with the support of the consortium as the main mode of operation and contains convenient tools for working with the blockchain as a data storage. The Platform itself, which implements the data exchange interface and data access control tools, was developed on the .NET platform.

The main characteristics of the developed solution:

• Data is distributed among all nodes of the system, none of the participants in the system can falsify or delete data once issued to another participant, and there is no single point of failure. Even if the participant node is physically disconnected from the network, the data received before the moment of disconnection remains on this node and is available for working with them, and when the connection is restored, the data that appeared during the absence of the node in the network is received.
• A closed blockchain (consortium) is used - i.e. connection to it requires either coordination by the coordinator node, or, if the consensus administration model is chosen, by all network participants.
• After connecting, a member of the consortium can create both public (available to all participants) and closed (available to a selected circle of participants) data collections. The security of closed data is ensured by cryptographic protection of data using GOST algorithms.
• Only the creator of the collection can control access to the collection.
• When a new member is added to the access list of an already existing collection, the previously published data becomes available to him automatically.
• When a member is removed from the access list, the newly published data will not be available to the member.
• The platform supports structuring data in a collection in JSON format and validating the document format in it according to a JSON schema.
• The platform provides an API that isolates the user from the implementation details of the blockchain itself and allows working with higher-level concepts (“document” and “collection”).
• The platform does not provide for the deletion of data, so no member can delete a document from a collection available to other members.
• When updating a document, a complete history of its changes is saved, and it is possible to obtain any version of the document.
• The platform supports sending customized notifications about data changes/updates in the collection of interest to the participant's external systems, so the information systems of one participant can quickly respond to data updates made by the information systems of another participant.

As for the principle of operation of the data access control mechanism, it is based on a hybrid encryption scheme:

1. A registered participant in the system receives a public and private key. The public key of each participant is public and published on the blockchain.
2. Participant No. 1 creates a new collection and determines with which of the system participants he would like to share its contents (Participant No. 2 and No. 3), then adds a document to this collection.
3. The platform encrypts the document with a generated symmetric key (meaning that the same key is required for decryption as for encryption). Such a key has a much smaller volume than the encrypted document itself.
4. The platform extracts the public keys of participants #2 and #3 from the blockchain and encrypts the symmetric key with them, and places the results in the blockchain.
5. Members #2 and #3 log in and try to view the contents of the collection. The platform decrypts the symmetric key with the private keys of participants No. 2 and No. 3, after which it decrypts the document with this key. Thus, participants #2 and #3 get access to its contents.

1. The participant is registered at the Accounting Center (hereinafter referred to as CA No. 1), submitting all the necessary documents and data.
2. The accounting center issues an electronic signature to the participant and binds to it all the data subject to them, adding it all to the blockchain.
3. When a participant enters the public procurement site (hereinafter Site No. 1), it retrieves his registration data from the Collection created by CA No. 1.
4. It is possible that the site does not have enough of this data and it will request additional information or want to store other information (for example, the history of participation in the auction) for a specific client in order to share it with another friendly site. In this case, it creates a new collection on the blockchain with this additional data.
5. When a Participant decides to register on Site #2, it also takes his registration data from the collection of CA #1 or from the collection created by Site #1

Outcome

Blockchain technologies have gained public attention thanks to cryptocurrencies (namely Bitcoin). However, the prospects for the use of blockchain technology in everyday life are much broader than the financial sector. In what areas will the introduction of blockchain technologies be the most promising? Where is cryptography being used now, and where is the launch of such technologies a matter of several years, or even months?

Blockchain in the financial sector

Most people who are only superficially familiar with blockchain associate this technology with Bitcoin and other digital currencies. Meanwhile, even in the financial sector, the use of blockchain is not limited to the release of new variants of crypto-cash.

For example, an interesting example of the creation of the Polybius cryptobank. Its founders initially did business in the production of equipment for mining, and they themselves produced cryptocurrency. When they started having problems with money transactions (banks simply didn’t want to serve a company engaged in such “frivolous” activities), the team decided to open their own bank, where blockchain is used in most processes.

First of all, the blockchain helped the founders of the crypto bank to attract additional investments through ICO. In addition, the entire document flow of the financial structure will be conducted on the blockchain (Emercoin technology is used for these purposes). Bank transactions are another operation where blockchain is used.

Moreover, quite traditional banks are also considering the possibility of conducting transactions through the blockchain. The most obvious option for such purposes is the Ripple platform and the cryptocurrency of the same name. Thanks to the use of blockchain technology through Ripple, you can transfer almost any amount from anywhere in the world, automatically converting from one currency to another. For example, an entrepreneur from the USA can transfer money to his partner in Germany, and the amount in dollars will come to the recipient's account already in euros, and the procedure itself will take only a few minutes.

Interesting solutions are offered by another cryptobank, Crypterium. In addition to blockchain transactions that have already become standard in this field of application, the project offers mobile payments with cryptocurrency with additional benefits such as loyalty programs, cashback, etc. It is assumed that such banking will be convenient not only for individuals, but also for businesses: cryptocurrency acquiring will allow you to control everything points of sale through a single system built on the blockchain. In addition, the bank's customers will have access to the usual deposit and lending services, but with the convenience and security of smart contracts.

Blockchain in medicine

In almost all areas where blockchain can be used, it acts as a universal data repository that is almost impossible to hack and change. In addition, access to this data can be obtained by any user with the appropriate rights.

Medicine is one of the areas where data storage and processing is one of the key factors. How quickly doctors receive the results of the examination or medical history can depend on the health, and even the life of the patient. Blockchain technologies make it possible to enter all data into a patient’s card, and even doctors from another city or country can access it, if necessary (for example, if a patient was forced to go to a medical institution during a vacation or business trip).

In medicine, electronic data storage mechanisms have been used in the past, but they were limited to one system. Doctors from one country could go to the internal Internet resource and get the necessary information, or add new data, but foreign colleagues did not have access to this database. With the use of the blockchain, specialists from other countries can be admitted to the internal resource without any fear, having previously limited access to the necessary.

Blockchain jurisprudence and law

If Bitcoin opened a new format of financial relations, then Ethereum did the same in the legal sphere. Smart contracts were also present in Bitcoin to some extent, but it is on the Ethereum platform that each user can create a full-fledged legal basis for their business, from an agreement to purchase a mobile phone via the Internet, to registering their own business with access to an ICO, launching an internal cryptocurrencies and other opportunities.

There are countries where government agencies use blockchain to simplify the management of state property and legal regulation. Similar mechanisms are being actively implemented in Estonia (previously it was possible to obtain e-citizenship in this country).

Based on smart contracts, it is now possible to register a marriage, and even get virtual citizenship - there is a full-fledged Bitnation cryptography on the Internet. This community has its own citizens, ambassadors and even real territories.

Blockchain in other areas

There are many more areas where blockchain technology can be applied. This is also the sphere of real estate – the tokenization of property rights to knowledge and land plots significantly increases the liquidity of assets and enables even small investors to conclude transactions. Blockchain is also used in the energy sector - tracking energy reserves at various points (gas stations and stations), as well as in entire regions, allows you to optimize supplies. By using smart sensors in pipelines and storage facilities, control can be improved and the risk of theft can be reduced.

The use of blockchain in the Internet of Things is a separate issue. This “bunch of innovations” can be used in various areas – in industrial production, agriculture, mining, etc. There are many such examples and all of them prove that blockchain technology has a great future, which is not limited to cryptocurrencies alone.

• News collections once a day to you by Email:
• Collections of crypto news 1 time per day in Telegram: BitExpert
• Insides, forecasts for discussing important topics in our Telegram chat: BitExpert Chat
• The entire cryptocurrency news feed of the BitExpert magazine is in your Telegram: BitExpert LIVE

Found a mistake in the text? Select it and press CTRL+ENTER

Over the past 30 years, financial institutions have provided money to destroy various industries; they have an idea of ​​what revolutionary technology can do to a traditional system.

To prevent changes, banks actively participated in the creation of research laboratories, the organization of test centers and the establishment of partnerships with developers blockchain to fully understand the revolutionary potential of the technology.Financial institutions were the first to dive into it, but academia, governments and consulting firms have also explored the technology.

Of course, all this work is in addition to what entrepreneurs and developers are doing, either by finding new ways to use bitcoin or ethereum, or creating completely new blockchain protocols. This has been going on for several years now and the results are starting to show.

Blockchain Application: Creating a Digital Signature

As described in the article " How does blockchain work?”, identification in blockchain technology is performed using cryptographic keys. Combining the public and private key creates a strong digital signature based on ownership.

The public key is how you identify yourself in the crowd (for example, an email address), the private key is how you express consent to digital interactions (essentially a mail password). Cryptography is an important force behind the blockchain revolution.

Thus, one of the main applications of the blockchain is the protection of data using digital cryptography.

Blockchain Application: Data Storage System

As stated in the article " What is a distributed ledger?”, blockchain are an innovation in the registration and dissemination of information. The technology is good for recording both static data (registry) and dynamic data (transactions), making it an evolution in information recording systems and database creation.

In the case of a ledger, data can be stored on the blockchain in any of three combinations:

• Unencrypted data - can be read by every participant in the chain in the blockchain and is completely transparent.
• Encrypted data - can be read by participants using the decryption key. The key provides access to the data in the blockchain and can prove who added the data and when it was added.
• Hashed data - can be presented along with the function that created it to show that the data has not been tampered with.
  Blockchain hashes are usually performed in conjunction with the original data stored off-chain. For example, digital “fingerprints” are often hashed on the blockchain, while the bulk of the information can be stored offline.

Such a shared recording system could change how organizations work together. So, nowadays, when the data is closed on private servers, the huge cost of transactions between companies is associated with processes, procedures and cross-checking of records.

Proof of immutability

The peculiarity of the blockchain database is that it has its own history. Because of this, they are often referred to as immutable. In other words, changing a record in such a database requires a huge amount of effort, because it would require changing all the data that subsequently appears on each individual node. Thus, it is more of a recording system than a database.

The second extremely important application of blockchain technology is a new look at storing information and creating databases.

Blockchain application: Blockchain as a platform

Cryptocurrencies are the first platform developed using blockchain technology. Now people have moved from the idea of ​​a platform to exchanging cryptocurrencies with a smart contract platform.

The term "smart contracts" (or "smart contracts") has become a catch-phrase, but the idea can really be divided into several categories.
In the 1990s, Nick Szabo developed "vending machine" smart contracts. After an external input (cryptocurrency), the machine interacts or sends a signal that starts the operation on the blockchain.

There are also Smart Legal Contracts or Ricardian Contracts. This appendix is ​​based on the idea that a contract is a meeting of minds and that the result is an agreement between the parties. So a contract can be a combination of a verbal agreement, a written agreement, and now also some of the useful aspects of the blockchain, such as timestamps, tokens, auditing, document coordination, or business logic.

And finally, there is . These are programs that manage blockchain assets that run on interactions in the ethereum system. Ethereum itself is a platform for smart contract code.

Thus, another fundamental application of the blockchain is the creation of many different applications based on it for various needs - from anonymous voting and transactions to paying utility bills.

The world is just beginning to discover blockchain technology, so its new applications will be formed every day, and soon it will become a dense part of our lives, forming the basis of banal things.