During the last 30 years, financial institutions funded numerous industries. Most of those institutions are aware of the profitability and importance of a key technology. For that reason, banks created research and development laboratories in order to develop the potentials of blockchain technology. Financial institutions were the pioneers in blockchain sector. But, after a while, academies, governments and counseling centers also joined the game in order to develop the blockchain technology capabilities. In this article we are going talk about what are the applications of blockchain network.
Blockchain technology applications
All the researchers and developers are trying to expand the potentials of Bitcoin, Ethereum and other cryptocurrencies’ blockchain. They could achieve a good level of success during the past few years. In fact, in the near future we will be witnessed that blockchain technology is applied in many industries and aspects of our life. Here we are going to have an explanation of blockchain’s applications.
The concept of digital identity
The identity of blockchain users recognize and define through using encrypted keys. It means that every user has a private key and a public key. The combination of a public key and private key makes the network immune. The public key works the same as an email address. It uses in order to recognize a user among others. The private key uses when you want to perform a transaction in the network. So, the encryption is the core of blockchain.
A coherent database of information and data
Blockchain also known as “Distributed Ledger”. The blockchain network is an innovation in recording and distributing data and information. Such this technology can revolutionize the connectivity system of organizations and institutions. In fact, centralized servers are cost the organizations a lot. As a result, blockchain could be a suitable solution in order to reduce the costs.
What Are The Applications Of Blockchain; Stability
Blockchain has a long history. As a result, a lot of research and effort put into it to become mature. In fact, blockchain is a chain of blocks. In this chain each block is connected to its next and previous block. As a result, if you want to make any changes to data stored in a block, you will need to make changes to the other blocks as well. So, it made blockchain network stable and immune to any changes.
What Are The Applications Of Blockchain; An efficient platform
Cryptocurrencies were the first thing, which developed based on blockchain technology. After a while, other terms such as blockchain-based exchanges and smart contracts also introduced to the users.
There are different types of smart contracts. Below we are going to give you a short history of smart contracts and explain different types of it.
- Nick Szabo introduce the concept of “Sales Devices” based on smart contracts in 1990. These machines receive an external input (for example a cryptocurrency) and then provide a specific signal.
- There is smart contract concept called “Ricardian”. The software which works based on this type of smart contract, recognize the contract based on the agreement of the parties involved in the transaction. As a result, a contract could be a verbal agreement, written agreement and other information such as time, tokens, audit, documents, etc.
- The last is Ethereum’s smart contract. This type of smart contract controls the transaction, which perform on Ethereum’s blockchain. Ethereum is a suitable platform in order to perform smart contracts.