The ideas behind blockchain were conceived in early 1991, but the technology only began to receive more attention when Bitcoin was developed in 2009. Bitcoin was created by a person or group of people under the pseudonym Satoshi Nakamoto. Although it is not known exactly who Satoshi Nakamoto is, his technological innovation has already made a huge impact on the way the world handles money.

Most Blockchain networks function as a distributed ledger that records and protects digital data through the use of cryptography. The technology is constantly being applied to digital currency networks (cryptocurrencies), but its secure and decentralized nature also makes it a powerful tool for several other industries.

As the cryptocurrency space grows and solutions based on blockchain technology improve, learning about how this innovative technology can be applied in different scenarios is very important.

By removing the need for trust and reducing security costs, blockchain technology becomes attractive as it offers greater efficiency. Furthermore, the decentralized network can be configured as a fully transparent database, visible to all its participants. In this sense, blockchain technology allows the creation of a distributed but unified record. This provides opportunities to improve the performance and safety of various industries and organizations (e.g. charity, supply chain, healthcare, etc.).


Charity

Many charitable organizations around the world deal with challenges of resource management, operational transparency and governance. Certainly, blockchain technology can be very useful for these institutions, as a tool for optimizing fundraising and fund management processes.

We already have some notable examples of integrating blockchain technology into charitable organizations. For example, the Blockchain Charity Foundation (BCF) is a non-profit organization that works towards sustainable development, seeking to combat poverty and social inequality, with the aim of encouraging blockchain philanthropy around the world.


Supply chain

Most supply chains face several obstacles when it comes to transparency and efficiency. The current management system still depends on trust in third parties and is far from providing appropriate integration between companies and the parties involved. Blockchain technology can be used to track the entire process of creating and distributing materials within a supply chain network. A distributed database may be appropriate to securely record any related data, ensuring authenticity of products as well as transparency of payments and transportation.


Healthcare

Operational bottlenecks, data errors and bureaucracy are significant concerns for the healthcare industry. Blockchain has several use cases in healthcare, including tracking medications through the supply chain and managing patient data.

Furthermore, blockchain can offer important security benefits for hospitals, as these institutions are frequent targets of hackers due to the high value of their data and the heavy dependence on it.

Companies are exploring the use of blockchain as a way to store digital health records. Such solutions can lower overheads while improving data privacy and accuracy.


Typically, musicians, game developers and artists in general struggle a lot to get the payment they deserve due to digital piracy, unfair relationships with third-party agencies or simply due to an inability to receive payment for their copyrights.

Blockchain technology can be used to develop a platform where creative talent has an immutable and transparent record of who is renting, purchasing or using their content. Such a platform can also facilitate payments through smart contracts - which are basically self-executing digital contracts.


Governance

Blockchain technology has the potential to significantly improve governance across different sectors. By managing networks and operations in a more democratic, fair and secure way, blockchain-based systems can be implemented as a tool to end voting fraud, increasing people's trust during elections or other constitutional processes. These systems can also be used as a powerful weapon against corruption, improving data integrity and traceability in a variety of scenarios, from tax collection to the distribution of auxiliary funds.


Payment solutions and dApps

When it comes to sending money around the world, blockchain technology has already proven to be extremely efficient. Sending cryptocurrencies to friends, family and others around the world is already cheaper and faster compared to solutions offered by banks and centralized payment systems.

Furthermore, centralized websites and applications do not give users control over their data and almost always do not reward them according to the real value they bring to the platform. Blockchain-based applications (dApps) eliminate intermediaries, giving users the potential to enjoy reduced fees, better incentives and greater transaction efficiency, in addition to being able to send and receive money digitally.

As Vitalik Buterin said, blockchain solutions allow people to work directly with each other, eliminating the need for third parties or centralized systems.

“While most technologies automate basic worker tasks, blockchain technologies automate the role of the intermediary. Instead of killing a taxi driver’s job, blockchain kills Uber’s business, allowing taxi drivers to deal directly with their customers.”


Internet of Things (IoT)

Blockchain and the Internet of Things (IoT) are naturally compatible. Blockchain is a decentralized technology and IoT networks are often used to collect data from sources that are dispersed.

Blockchain allows organizations to maintain an immutable and transparent ledger of IoT devices, recording the data collected by them and their interactions. Between its security features and its cryptocurrency applications, blockchain technology offers an ideal platform for machine-to-machine (M2M) transactions.

Since blockchain is a technology based on facilitating accurate and secure transactions, it makes sense for it to be integrated with IoT as a way to ensure data accuracy, security and accountability. This is why many companies have invested a lot of resources in  blockchain-based IoT networks.


Final considerations

As an accounting technology that makes use of a fully distributed ledger, blockchain has the ability to provide networks and organizations with greater security, transparency and efficiency. Technology increases privacy and eliminates the need to trust third parties. It also creates an internet of values ​​where users can carry out peer-to-peer (P2P) international transactions.

This is why blockchain technology and cryptocurrencies are not just here to stay, but also have the power to transform all types of industries and aspects of human life, from finance, agriculture, big data to governance, voting and law.