Uses of Blockchain - Essay Sample

Introduction

Blockchain presents a variety of financial benefits. Cocco, Pinna, & Marchesi (2017) shows an example of all the resources that are essentially wasted due to the storage process for transactions. In their perspective, the authors argue that the resources used to store information plus the cost of electricity needed to run the hard drives cost the bank more money than a ledger built from a Blockchain (Cocco, Pinna, & Marchesi, 2017). Concisely, blockchain results in the use of fewer resources leading to less electronic waste and energy consumption. With the rise in Bitcoin's cost, interest has risen, resulting in more miners, making transactions more efficient (Cocco, Pinna, & Marchesi, 2017). The implication is that efficient transactions have offset the additional costs of increased electricity use and mining hardware costs (Cocco, Pinna, & Marchesi, 2017).

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Blockchain is essential in the securities industry. Tranquillini (2016), in his study, brings the potential of the blockchain applications in the industry.

In another study, Tranquillini (2016) acknowledges the potential of Blockchain technology in the security industry. Based on this study's findings, Tranquillini records that blockchain presents a firm foundation in the consumer goods and securities industry. The current financial markets are characterized by issues of safety and stability, as well as government regulations. Tranquillini (2016) argues that blockchain applications present a greater potential for the securities industry (Tranquillini, 2016).

In correspondence to the Nature magazine, Ahmed & Broek (201) puts together several trends that show the need and potential for Blockchain technology for food security. Food safety has remained a worrying factor. The authors argue that blockchain can help trace food products from their sources throughout the distribution networks until it reaches the final customer. This would help reduce fraud and prevent issues of food-borne illnesses.

In another study, Tapscott and Tapscott (2017) argue that blockchain is the best form of technology for higher education. The authors encourage higher education scholars to explore Blockchain technology's vast possibilities that can improve the state of higher education. Practically, Tapscott and Tapscott (2017) identified four significant areas that require a focus on higher education. Institutions of higher learning frequently need profound systems to handle students’ records and educational models. They also need a system for sound pedagogy and reduced costs. Concisely, blockchain can be used to record academic achievements throughout an entire course. With blockchain becoming more appealing, higher education will greatly need to assimilate it into their programs, especially in the employment sector.

In a paper authored by Ishmaev (2017), implementing complex systems requires smart and decentralized contracts. Blockchain-based applications provide this platform with an excellent ability to monitor and archive property law's basic tenets and constitutional rights(Ishmaev (2017). With Blockchain technology, there will be an easy update of the ledger allowing real-time tracking of progress to ensure transparency for all parties involved. Also, the technology could allow monitoring of the property, especially for high-value goods. Blockchain technology allows a decentralized system for broader transparency concerning ownership of property (Ishmaev (2017). Consequently, counterfeit practices would reduce to minimal levels because of the complications involved after blockchain applications to decentralize the archives (Ishmaev (2017).

One of the Blockchain applications' major advantages is establishing a transparent and accountable system in the supply chain networks (Ahram et al.,2017). It assures a more flexible value chain because the application can generate a breakthrough in optimization, visibility, and demand (Ahram et al.,2017). Blockchain is also very useful in logistics because it helps identify counterfeit products, decreases the process of paper load, and facilitates origin tracking (Tan et al., 2018). It provides room for a direct transaction between the buyer and the seller without manipulating the intermediaries (Subramanian,2017).

Blockchain applications are very useful in healthcare management. Casino et al. (2019) present a literature review to focus on healthcare areas that may require blockchain applications. Healthcare institutions have sensitive sites like health records, health claims, medical research, online patient access, and patient data sharing. Blockchain technology helps solve credibility issues surrounding scientific findings and issues of patient’s informed consent.

From the studies reviewed, it is ultimately clear that the use of blockchain technology is numerous. Concisely, blockchain applications are best applied in the financial fields, including providing services, conducting market predictions, financial settlements, and economic transactions (Casino et al., 2019). It has a great role in sustainable development as it benefits consumers and the global economy (Casino et al., 2019). Blockchain applications are also useful in securing financial assets such as derivative contracts and securities.

Advantage and Disadvantages of Blockchain

Blockchain's cost in the financial sector has become less expensive because the average power consumption per transaction is low. Also, blockchain has remained preferable because of its previous restore records stored in it. It assures safekeeping of records with minimal tampering. The banks can also have an honest view of potential investment opportunities (Cocco et al., 2017).

Blockchain-based applications can safeguard security, upgrade tracking mechanisms, offer traceability assurance, and ensure effective contract management mechanisms between the parties concerned (Madhwal and Panfilov, 2017). Also, it guarantees food safety, good customer service, IP protection, and better information management in the supply chain (Madhwal and Panfilov, 2017). Institutions can use Blockchain technology to improve their complex supply chains and inventory (Madhwal and Panfilov, 2017).

Additionally, blockchain data is backed up on network nodes so that the system remains highly resistant to attacks and instances of system failures (Golosova & Romanovs, 2018). In case of any malicious attacks, the network nodes replicate the database; the system remains stable even with a single node going offline (Golosova & Romanovs, 2018). Also, it's primarily difficult to erase data from the system once data has been registered into the blockchain; a great reason for storing financial records.

When it comes to traceability and storage of data, Blockchain technology presents some inherent challenges and limitations. While Blockchain technology can help ensure that any data being traced is secure and tamper-proof (Golosova & Romanovs, 2018). Concisely, some information may be too large to be stored on a blockchain or kept private, and thus other data storage methods may be used (Golosova & Romanovs, 2018). The use of mixed storage methods can be very tricky, especially selling blockchain's idea to resistant to change parties.

References

Ahmed, S., & Broek, N. t. (2017). Food supply: Blockchain could boost food security. (Brief article). Nature, 550 (7674), 43

Ahram, T., Sargolzaei, A., Sargolzaei, S., Daniels, J., & Amaba, B. (2017). Blockchain technology innovations. 2017 IEEE Technology & Engineering Management Conference (TEMSCON). https://doi.org/10.1109/temscon.2017.7998367

Casino, F., Dasaklis, T., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification, and open issues. Telematics and Informatics, 36, 55-81. https://doi.org/10.1016/j.tele.2018.11.006

Cocco, L., Pinna, A., & Marchesi, M. (2017). Banking on blockchain: Costs savings thanks to the blockchain technology. Future Internet, 9 (3), 25.

Golosova, J., & Romanovs, A. (2018). The advantages and disadvantages of blockchain technology. 2018 IEEE 6Th Workshop On Advances in Information, Electronic, and Electrical Engineering (AIEEE). https://doi.org/10.1109/aieee.2018.8592253

Ishmaev, G. (2017). Blockchain technology as an institution of property. Metaphilosophy, 48 (5), 666-686.

Madhwal, Y., & Panfilov, P. (2017). Blockchain and supply chain management: Aircrafts’ parts’ business case. DAAAM Proceedings, 1051-1056. https://doi.org/10.2507/28th.daaam.proceedings.146

Subramanian, H. (2017). Decentralized blockchain-based electronic marketplaces. Communications of The ACM, 61(1), 78-84. https://doi.org/10.1145/3158333

Tan, A., Zhao, Y., & Halliday, T. (2018). A Blockchain Model for Less Container Load Operations in China. International Journal of Information Systems and Supply Chain Management, 11(2), 39-53. https://doi.org/10.4018/ijisscm.2018040103

Tranquillini, A. (2016). Blockchain yes, blockchain no: An outsider (non-it expert) view. Journal of Securities Operations & Custody, 8 (4), 287-291.

Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. New York: Portfolio / Penguin.