Blockchain explained: a game changer for many industries

Before we start, we need to answer the question: "What is a blockchain?" You can think of a blockchain as a decentralized database, like a distributed notebook. Each transaction is recorded as a data block in a chain on all participating computers. These chains cannot be changed. This makes them practically tamper-proof compared to conventional centralized databases. This is known as "distributed ledger technology". Find out more about blockchain technology here.

All assets can be stored, tracked and traded on the blockchain network. Tangible assets such as a car, house or money as well as intangible assets such as patents, copyrights, title deeds, shares and more. The blockchain is transparent, cannot be manipulated, is secure, fast and cost-effective. This is because it makes intermediary service providers such as notaries, banks, travel agencies or other middlemen superfluous.

The blockchain technology process is very versatile and can be used in various areas:

● Decentralized finance (DeFi): More and more financial companies are integrating blockchain technology into their existing business model and processing financial services via a decentralized platform. PayPal, for example, now enables the purchase of cryptocurrencies, the sale of Bitcoin and Co. and even the holding of cryptocurrencies. Transfers can also take place between individuals and businesses by transferring cryptocurrencies.

● Logistics chains: Where does coffee come from before it comes out of the coffee machine? Food giant Nestlé uses blockchain technology in its coffee supply chain to track Zoégas brand coffee capsules from the moment they are harvested in South America. Many other suppliers also use the tracking of their goods for complete transparency, proof of sustainability and real-time tracking along the entire value chain.

● Identity verification: There are now various companies that verify people's identities thanks to blockchain technology. This means that passports, ID cards and driving licenses can be issued more easily and cannot be forged. This also applies to certificates or documentation of ownership, asset management, guarantees of origin and more.

● Healthcare: Sensitive patient files can be stored in the blockchain and unlocked specifically - only for doctors. This means that all data is stored securely so that patient files no longer need to be actively sent when changing doctors, but can be viewed directly. Information such as blood pressure values, blood sugar measurements or vaccinations are automatically compared with the file. Even the production and transportation of medicines can be mapped transparently and tracked along the value chain.

● Media and art: Art is also a major topic: real paintings that represent abstract art or even digital art can be checked for authenticity and traced. In 2021, for example, a digital collage by US artist Beeple was auctioned off for 70 million US dollars. The artwork was stored on the blockchain and encrypted with a non-fungible token (NFT). NFTs make it possible for the first time to create unique digital media and give them a value. So if you want to buy virtual art in the form of an NFT, you can rely on well-known marketplaces such as Opensea thanks to blockchain technology, as they also use blockchain technology.

The spread of the technology is still at an early stage. As soon as more and more companies become fully aware of the potential applications, blockchain will continue to move the various industries forward. In addition, cryptocurrencies are also becoming increasingly popular. And also the transition to Internet 3.0, which we are on the cusp of, which could enable an Internet of Value or Internet of Things. Find out more about the development of the internet from Web 1.0 to Web 3.0 here.

We cannot predict the further development of this advanced technology. However, the opportunities are obvious: greater security, efficiency, transparency, speed, authentication and cost reduction. It is therefore quite conceivable that blockchain will accelerate the economy in the future.