Blockchain technology, which has been widely heard by the cryptocurrency industry, has been used by the world’s giant companies for some time and is rapidly becoming widespread. Blockchain solutions provide significant advantages and positive changes not only for companies but also for consumers.
1-What does Blockchain technology do?
Nowadays, when the importance of information and data security has increased significantly, costs and risks such as storing and changing data are eliminated with blockchain. Fast and secure access to data, the inability to change the data and the fact that a new record must be added to the system for correction facilitates the tracking of all transaction details. Instead of identity information, transactions can be made with blockchain-specific identification numbers, which are important for data security. Since it is a decentralized system, all the costs required for business such as data storage and the possibility of hacking are reduced. To briefly summarize the benefits: Data security and transparency, data tracking and data cannot be changed, fast access to data and efficiency, automation, less intermediaries.
2-How can blockchain change our lives in the future?
If official institutions are included in this process, it will pave the way for passport, identity card and similar document transactions that require physical identity declaration and are carried out in official institutions to be done completely remotely and quickly due to the unchangeability of the system. In sectors such as food, it will be possible to monitor the entire supply chain by tracking the process from the source to the end user and all the transactions made and applied, revealing costs and profit margins, and accordingly processing big data more efficiently and effectively. This will pave the way for cost management for companies, as well as for consumers and public authorities to immediately identify possible exorbitant prices and faulty aspects in the supply chain and to make appropriate arrangements accordingly. As a result, blockchain, which provides transparent and unchangeable data, whether in financial institutions such as banks or in the real sector, will create many opportunities such as inflation, effective agricultural production, cost accounting of companies or the ability of consumers to see real prices. It will also prevent possible fraud and fraudulent transactions. For example, when you are going to buy a car, there are many inquiries such as whether there is a pert record or not, but it is a question mark to what extent these inquiries are healthy. With IoT, the Internet of Things, you will be able to see all previous transactions in all asset classes and act accordingly. In summary, it will pave the way for eliminating all the problems we face today due to information asymmetry.
3 – Is blockchain technology only used for cryptocurrencies?
As we mentioned, this issue is much broader. From the Internet of Things to data verification and security of data, many fraudulent issues can be eliminated with blockchain. For governments, more effective structural policies based on accurate data can be realized, while wasting time and resources can be prevented. Companies can manage all activities such as production, sales, service, logistics and similar activities faster and more effectively, while individuals can fulfill the correct pricing behavior in all asset classes in the market. For example, you will be able to see where all the ingredients in the food you eat in a restaurant were grown, when they were purchased and how much they cost. Or it will be possible to transparently access many data such as the previous owners of the house you bought, the renovations made in the house, previous sales prices, and the materials used.
In the financial sector, due to the lack of mutual trust, the way banks and other financial institutions operate will change. These institutions will now be service provider platforms with blockchain. Issues such as funding and project financing will become possible through P2P. Areas such as patient and drug tracking in the health sector, automatic billing at electric vehicle stations in the energy sector can also be listed as channels suitable for blockchain use.
4-Which companies in the world use blockchain infrastructure?
It would be more explanatory to give examples of some global companies using this increasingly widespread technology.
Boeing has developed a privileged air traffic control system using blockchain technology for drone tracking. (https://www.americanmachinist.com/news/article/21902912/boeing-to-codevelop-airtraffic-control-for-drones)
Cargill switched to blockchain technology to track turkeys prepared before Thanksgiving. (https://fooddigital.com/food/cargill-using-blockchain-technology-trace-turkeys-farm-table)
Carrefour tracks dozens of product lines, from eggs to salmon and cheese. The company plans to increase the number of products to 100, attributing increased sales to this.
China’s construction bank has established a blockchain-based platform where it can identify borrowers and institutions in the risky group and offer more attractive rates to low-risk customers. (https://cointelegraph.com/news/china-construction-bank-s-blockchain-bond-efforts-take-a-new-direction)
CreditSuisse established a blockchain-based settlement system through P2P that allows customers to buy and sell securities directly with each other without an intermediary. The settlement time is 2 days with an intermediary, whereas this allows for instant settlement. The examples can be extended and there is no limit to the scope of application. (https://www.thetradenews.com/credit-suisse-societe-generale-adopt-blockchain-settlement-platform-us-equities/)
5-What are the benefits of smart contracts on blockchain?
Smart contracts, which allow two or more stakeholders who do not trust and do not know each other to interact, can be defined as digital agreements/programs running on the blockchain that must comply with certain rules. These rules are predetermined and copied by the entire network, and if the conditions are not met, the contract does not enter into force. In this way, commitments can be made through the blockchain without the need to establish trust.
When it comes to application areas, there is no limit to the area subject to the agreement as it can be customized. From the purchase of goods and services, financial funding, health services, games and mobile applications can be listed among the areas of use.
This technology already provides speed, trust, and cost reduction automatically. For this reason, factors such as the area where this technology will be used, the frequency of use in daily life and user demand are the factors that will make the project successful. Technically, the number of blocks is expected to increase with the increasing number of transactions. In this way, it is possible to benefit from all the benefits of blockchain technology, including the security element.
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