How was it developed?
Contrary to what one might think, blockchain technology was not born together with Bitcoin, but was initially developed in 1991 when scientists and engineers Stuart Haber and W. Scott Stornetta introduced a computationally practical approach for time stamping digital documents in order to prevent them from being backdated or manipulated.
The system employed a cryptographically secure chain of blocks to store the time-stamped documents, and Merkle trees were added to the architecture in 1992, making it more efficient by allowing numerous documents to be gathered into one block. However, this technique was never implemented, and the patent expired in 2004, four years before the creation of Bitcoin.
How can it be used to solve practical problems?
First and foremost, keep in mind that the blockchain is not governed by an authority. As a result, it is a truly democratic system. The information contained is immutable, allowing for unprecedented levels of transparency.
Because of these two considerations, blockchain has become the most revolutionary technology since the invention of the internet. But what are the problems that blockchain solves, making it so popular and revolutionary?
So, here are some real-world problems that blockchain can solve. So, without further ado, here we go:
1. Intellectual Property
Content creators, artists, or authors all over the world find it hard to protect their rights in the digital age. It seems like almost any work of art can be stolen, copied, and distributed by pirates. One example of the use of the blockchain is NFTs. Now artists can mint their digital art and sell it as a non-fungible token, making the art unchangeable and impossible to counterfeit.
When it comes to intellectual property, whether it’s an innovation, a trade secret, or a song you’ve created, blockchain can help protect it from theft.
2. Supply Chains
Blockchain technology is seen as one of the most promising technologies for supply-chain management.
Some supply networks are complex and lack transparency in their procedures. This is a problem, especially regarding the quality of materials, particularly in the food industry. This is a flaw that large companies are working to solve, considering the possible detrimental impact it may have on their image.
This is where blockchain can be used. It can improve asset recording, tracking, assigning, linking, and sharing greatly. Because it provides excellent transaction security and transparency, blockchain can significantly improve the efficiency of supply chains.
Another possible use of the blockchain are charitable associations, thanks to the transparency that the blockchain offers we can follow all transactions and donations.
Next, it can reduce the transaction costs and other expenses for all sides of the deal. What’s more, blockchain technology can reduce administration costs by checking most of the processes and approving transactions automatically.
Following that, it can lower transaction fees and other expenses on all sides of the transaction. Furthermore, blockchain technology has the potential to minimize administrative expenses by automatically verifying and authorizing transactions.
Additionally, several worthwhile social programs never reach their full potential due to a lack of recognition. Blockchain technology may be the answer the industry is seeking for.
When a vote is saved in the blockchain, it can be tracked in real time and it can never be changed. This technology can eliminate the possibility of tampering any election. One of the greatest issues for many countries is the justice of elections. Colombia has already made the first steps by launching a blockchain-powered voting platform called Plebiscito Digital.
5.Sports and ESports
The Sports and ESports industry follows an old-school approach for generating revenue. This involves creating campaigns to sell event tickets, creating channel subscriptions, and so on. For example, it doesn’t incentivize the viewers for their engagement, which can drive more attention to sports and esport. All these issues can be easily resolved by introducing blockchain into the market.
By tokenizing teams and establishing loyalty programs, blockchain may be utilized to build new income models.