Trust is the cornerstone for every business around the world. Without trust, transactions cannot occur. Industries function together, via legally bound documentation which is a source of ‘trust’—and this requires procedures such as making contracts, and signing documents, all performed manually. This makes it time-consuming, expensive and inefficient.
Blockchain’s ability to replace the need to establish trust between individuals or business entities before a transaction is what makes this technology matter. It provides secure transactions, reduces compliance costs, and speeds up data transfer processing. Blockchain technology can help contract management and audit the origin of a product.
For the unversed, Blockchain is a public distributed ledger, where all the transactions are stored, and are open to public preview, meaning that anyone can view when the transaction has occurred and the address it has been sent to. Thus, making it transparent. In terms of security, every block on the blockchain is secured through cryptography, and the data is encrypted.
The data on a blockchain is irreversible. So when a transaction occurs, there is nothing you can do to delete or modify it. It will always remain recorded on the database. Notably, this aspect of blockchain is why its use is being advocated for democratising functions, such as storing important records, helping gig workers, and improving transparency.
Need for a transparent system
Industries function through a fixed ‘hard and fast rule’, that was designed catering their needs. This creates an imbalance, favouring them over the end consumer, which is us.
These so-called rules are set in the name of the control and governing policies, practices, and data safety, only benefiting the industrialists. What we need is a transparent system that includes everyone, and this is possible through Blockchain.
Democratising means, involving the masses to make a decision. Current systems are closed and selective, laced with corruption. We do not own our data or have any control over it. There is a dire need to unshackle the masses bound to archaic systems, bureaucracy and closed policies. This can be achieved through blockchain transparent systems.
In finance: Blockchain aims to change traditional finance and its workings. Traditional finance, such as banks are centred around interacting with the third party or middlemen. This can be completely eliminated with Blockchain smart contracts.
Smart contracts are pieces of algorithms that execute when a specific condition is met on the blockchain. It runs on the blockchain, so they are stored on a public database and cannot be changed or modified. It ensures digital proof of all the terms that are agreed upon in a transaction.
The involvement of a third party always has a chance of fraud and means to tamper with records and agreements. Smart contracts ensure that all the clauses are fulfilled without the tampering of a third person.
Lending and borrowing can be completely revolutionised with blockchain systems. There is no need to go to a bank to facilitate loan services. Collateral can be provided in the form of virtual assets, all automated fueled by smart contracts.
Gig economy: Blockchain will empower gig economy workers as well. These workers can track their efforts on the blockchain with time and across different markets. Blockchain-based platforms are free of any error and manipulation, which means that gig workers will be paid based on their experience, reputation, and earning history. Overall, Blockchain technology removes cumbersome, time-consuming, and error-prone processes, thereby empowering gig workers.
Creators economy: Here, creators will be able to control their own work.
Electric power sector: Blockchain turns the electricity grid into a peer-to-peer network, which means every user who utilizes electricity can trade, i.e., buy or sell it in an open market. Blockchain is considered a promising tool to record and facilitate transactions between electricity providers and users.
Consumers can even sell excess electrical power energy to other network participants through automated smart contracts.
With smart contracts, electricity distributors can control power and storage flow along the grid to balance supply and demand—thus, reducing costs and improving the environment.
Music sector: Non-fungible tokens or NFTs based on blockchain technology have the potential to empower music creators, by revolutionizing the rights and royalties process. This means artists writers, publishers and everyone in the music industry value chain will be paid appropriately.
NFTs are stored on smart contracts, that have the name of the creator, which means it gives credibility to the original artists. The digital collectables are rare, and cannot be edited or modified or even replicated on the blockchain, thus letting creators set their rates for the creations, as well as giving full control over the secondary market for them.
Blockchain integrations, however slow in many industries, are still showing considerable progress in agriculture and food, shipping and logistics, government, oil and gas, healthcare, and manufacturing and in Government organizations that contribute heavily to the economy and welfare of the common human.
— Ankitt Gaur, Founder & CEO, EasyFi Network, and Anshul Dhir, Co-Founder & COO, EasyFi Network.