Traditionally, middlemen have been controlling the data for decades. For example, Facebook is the middleman between users and advertisers, and banks are the middlemen between borrowers and lenders. Therefore, the issue is the data is regulated by a central authority, as explained in the case of Facebook and banks. They control the prices and also technically own the data. In this procedure, all the power lies with a middleman, and users must trust them to stay ethical and continue thinking about user interest. 

But blockchain was designed to make the data decentralised, and trust minimised with any centralised party. In simple words, it is a “peer-to-peer” architecture where numerous copies of the file exist at multiple workstations/users. Therefore, no single individual controls that file. Thus, this kind of architecture is highly scalable and less risky since there is no mistake of failure.

Cryptocurrency is the new buzz

Blockchain practically borrows the same concept: what if databases could be decentralised. It unravels a lot of issues:

• Connect directly to a borrower without a middleman like a bank. 
• Connect directly to advertisers to inform them of the kind of ads you like without going through Facebook.

You must have heard people using the term “Blockchain and Cryptocurrency”. They are two distinct technologies that are inherently intertwined with one another. Cryptocurrency is one of the renowned use cases of Blockchain. It is a digital currency that is not controlled by any central authority. Likewise, we can use Blockchain for smart digital contracts where no middleman verifies the contract.

Cryptocurrencies are the latest financial technologies drawing zooming profits and making a buzz worldwide. Everyone is involved in investing, mining, and making big money. Watching bitcoin prices surge and swoop and discussing crypto like Litcoin and Ethereum on Facebook signifies our nation is invested.

Blockchain and cryptocurrency go hand in hand

Bitcoin was the first cryptocurrency, but the list has mushroomed to more than 10,000 in the present scenarios. Blockchain technology came into the limelight during the foundation of Bitcoin. Despite a lot of scepticism, both technologies have become an essential part of our economic systems for the near future. Considerably it has transformed and advanced in recent years, but with the terms so closely aligned, a great deal of chaos still exists.

Eventually, the growth and development of blockchain have been fuelled by cryptocurrencies. But blockchain exceeds cryptocurrency applications by not restricting to the financial domain only. It offers myriad solutions to disrupt diverse markets in the years to come.

Innovative applications of blockchain

A wide range of areas, including healthcare, real estate, government, and music, are discovering a use for blockchain’s robust, secure storage, verifying, and encrypting data. Lets us see the six more applications of blockchain technology, a few of which are highlighted by cryptocurrencies:

Finance

One of the primary services of the financial sector is to reserve money and transfer it from one entity to another. However, it demands a steadfast intermediary in the form of a bank. Fortunately, blockchain now removes the need for such intermediaries by decentralising

 transactions. By shifting the means of the transaction out of siloed, closed networks, blockchain is allowing to solve some of the challenges around the interoperability of disparate financial systems worldwide.

The power to track all transactions boosts the transparency and security of blockchain-based payments, keeping both parties satisfied and happy.

Smart contracts

Smart contracts function as self-executing programs, activated automatically when predetermined requirements are met, facilitating the terms of the agreement between the seller and buyer directly. As it is executed on a blockchain network, the transactions are trackable, translucent, and not manipulated. This type of automation can immensely increase productivity while slicing costs in the business. In simple words, it helps you to exchange property, shares, legal documents, or more that are free of conflict by avoiding the expense of a middleman.

Cybersecurity

Data stored on the blockchain is generated tamper-proof due to the network of nodes. The nodes are the computers on which the shared database is stored and validate any transactions made. It can cross-reference to find the source of a disputed change because the technology contains several potential cybersecurity applications. Storing information across a network of devices eliminates the risk of hackers manipulating a single point of vulnerability. Likewise, decentralizing control of edge devices and Internet of Things devices can induce these devices to be more secure against any attacks.

Health records

A decentralised, safe, reliable blockchain system has clear applications for storing healthcare records. Personal health records (PHR) gather data from sources like medical centres, devices, clinics, and pharmacies and are managed mainly by patients. Electronic health records (EHR) are digital records of a patient’s medical history handled by doctors.

As patients manage PHRs, the fact of that information is sometimes doubted. Storing them on blockchains would guarantee they are trackable, transparent, auditable, and secure. On the other hand,

EHRs are generally stored in centralised legacy systems, which may need to be interoperable between various healthcare facilities. Blockchain could offer a solution, with EHRs stored safely on a decentralised system accessed by patients and healthcare workers across systems and organisations.

Non-fungible tokens

NFTs are tokens on blockchains, but they vary from cryptocurrencies in that they are individual digital assets. Technically, NFTs denote ownership of anything used to buy and sell digital art. In many circumstances, this digital art is freely available online for anyone to view, buy, or download. 

Voting

Recording and storing high-value data is innate to the voting process. Thus, blockchain is an ideal technology for revising the voting system. The reason is all nodes on a blockchain must confirm any information entered into it, people could potentially cast their votes online without fear of fraud. It also makes greater confidence for electoral officials to tally votes confident in the knowledge that each is attributable to only one individual.

The future of cryptocurrencies and blockchain

The worldwide investment in the blockchain is forecasted to reach $104.9 billion in 2028. With blockchain start-ups coming in and traditional institutions increasingly capturing the momentum offered by the technology, blockchain and cryptocurrencies are equipping disruptions far beyond the financial services sector. The gait of the technology’s evolution displays no sign of slowing down.

While some remain sceptical of cryptocurrency’s future, 2021 has encountered a breakthrough year for its investment profile. But still, whether or not it’s a good long-term investment is to be resolved. Some witness Bitcoin’s fixed supply as a reason it will appreciate over time, while the broad ecosystem of decentralized applications being designed on the Ethereum blockchain platform should boost its value in the long term.