Supervised by: Ibrahim Berksoy BSc, Msc. Ibrahim studied Computer Education and Educational Technologies at Bogazici University and completed his Master’s degree in Computer Education and Instructional Technologies at Yildiz Technical University. He is currently working on his PhD in Education at the University of Bristol, with his thesis research centring on digital educational game design.
ABSTRACT
Blockchain’s evolution is explored, from pizza-for-bitcoin origins to reshaping data management via secure digital ledgers. This paper deeply examines blockchain’s essence, types, technicalities, and pros/cons. It also analyses its impact across sectors and its future trajectory; diverse blockchain applications are underscored.
The article stresses blockchain’s wider merits – beyond cryptocurrencies, it boosts transactional transparency, efficiency, and security. Smart contracts, powered by blockchain, automate tasks, removing intermediaries. The impact spans IP protection, decentralised finance, and art authentication through NFTs. However, challenges persist – high costs, scalability, and speed hinder adoption. Lack of understanding, trust, and regulatory complexities pose barriers. Environmental concerns, energy usage, and privacy/security issues must be tackled. Interoperability and ecosystem fragmentation add further obstacles.
1. INTRODUCTION
1.1 What is Blockchain technology?
Blockchain technology is a decentralised and distributed ledger technology that enables numerous parties to record transactions in a safe and transparent manner. It uses cryptographic algorithms and a linked chain of blocks to assure the integrity, immutability and consensus of recorded data, eliminating the need of middlemen and increasing confidence in applications other than cryptocurrencies.
Blockchain technology has been deemed the main driver to guide the “Fourth Industrial Revolution” and it’s easy to see why (Kim, 2020). The inception of the roots of blockchain can be traced as far back as 1976 in the form of a paper describing the possibility of the concept of distributed ledgers in cryptography, but it wasn’t until 2008 when Satoshi Nakamoto, known to be the “inventor of blockchain”, released a paper on the concept of blockchain and its ability to be decentralised (Sarmah, 2018). It stated all the issues with modern banking (at the time) and discussed how blockchain could fix them (Ibid). This had a major impact on how transactions could be made without a third-party intermediary. From there, blockchain has been paramount in advancing several technologies and our world, as is prone to do much more in the future.
Blockchain’s transformative potential extends far beyond cryptocurrencies (Marr, 2018). In supply chain management, companies are utilising blockchain to trace the journey of products from source to destination, ensuring transparency, authenticity, and ethical practices. The diamond industry, for instance, has adopted blockchain to verify the origin and authenticity of precious stones, curbing the trade of conflict diamonds (Marr, 2018). Moreover, healthcare systems are leveraging blockchain to securely store and share patient records while maintaining privacy (Ibid). In the energy sector, blockchain facilitates peer-to-peer energy trading, allowing individuals with solar panels to sell excess energy directly to neighbours (Ibid). Furthermore, governments are exploring blockchain for secure voting systems, reducing fraud and enhancing civic participation (Sam, 2022). Estonia, for instance, implemented blockchain in its e-governance framework, enabling secure digital identities and streamlined public services (Karm, 2019). Blockchain’s influence stretches across domains like intellectual property protection, decentralised finance (DeFi), and even art authentication, where digital artworks are sold as non-fungible tokens (NFTs), secured by blockchain’s tamper-proof structure (Marr, 2018).
1.2 The technical aspect of blockchain technology
Blockchain technology has revolutionised digital transactions by providing a decentralised and secure system (Atlam & Wills, 2018). It ensures transparency, accountability, and immutability of data while eliminating the need for intermediaries (Atlam & Wills, 2018). The technology’s cryptographic algorithms guarantee the genuineness and integrity of data, making it difficult for hackers to manipulate the system (Yaga et al., 2018). Each block in the blockchain possesses a unique cryptographic link to preceding blocks, preventing fraudsters from tampering with past transactions (Atlam & Wills, 2018).
This innovative technology offers unparalleled levels of security absent from traditional methods (Yaga et al., 2018). It enables instantaneous transactions without the need for mediators, resulting in swift processing times (Atlam & Wills, 2018). The integration of cryptographic algorithms into blockchain technology enhances data security and mitigates potential risks for users (Yaga et al., 2018). The technology’s decentralised nature and cryptographic security measures have opened the doors to a new era of trust and efficiency across various industries (Atlam & Wills, 2018).
One of the remarkable features of blockchain technology is its ability to unleash a realm of possibilities through smart contracts (Yli-Huumo et al., 2016). These self-executing agreements operate based on predefined terms written into code snippets that run atop the blockchain network (Ibid). Smart contracts eliminate the need for intermediaries and securely automate processes stored within blocks on the chain (Ibid). They offer advantages in terms of speed, efficiency, and security, guaranteeing reliable transaction processing while reducing costs associated with third-party involvement (Ibid).
The applications for smart contracts are vast-ranging, spanning from supply chain management to real estate transfers (Ibid). They provide limitless opportunities to streamline operations across multiple industries (Ibid). However, the implementation of smart contract solutions may face challenges, including scalability and potential limitations (Ibid). It is important to explore the impact of smart contracts on transactional speed, effectiveness, and security while considering the potential challenges involved (Ibid).
In conclusion, blockchain technology has transformed digital transactions by providing a decentralised and secure system (Atlam & Wills, 2018). It ensures transparency, accountability, and immutability of data while eliminating the need for intermediaries (Ibid). Smart contracts offer advantages in terms of efficiency, cost reduction, and security (Yli-Huumo et al., 2016). Blockchain technology, with its fundamental principles and innovative features, has the potential to reshape various industries and unlock new possibilities such as supply chain management, real estate transfers, and more (Ibid). However, implementation challenges and potential limitations need to be considered (Ibid).
The digital realm has undergone a profound transformation thanks to the emergence of blockchain technology. It operates on a decentralised network, eliminating the need for intermediaries and enhancing transaction speed and security (Atlam & Wills, 2018). The distributed ledger system meticulously records every transaction, ensuring transparency and preventing data tampering (Ibid). Blockchain technology offers heightened transparency, fortified security, diminished costs, and swift processing times (Ibid).
The integration of cryptographic algorithms into blockchain technology enhances data security and mitigates risks (Yaga et al., 2018). The technology’s cryptographic link between blocks ensures the genuineness and integrity of data (Atlam & Wills, 2018). Each block incorporates a digital signature generated by hashing its contents and the preceding block’s hash value, creating an immutable chain (Yaga et al., 2018). These features provide unparalleled levels of security, making it difficult for fraudsters to manipulate the system (Ibid).
Furthermore, blockchain technology has the potential to revolutionise various industries beyond finance. In supply chain management, it can enhance transparency and traceability, ensuring the authenticity of products (Marr, 2018). In healthcare, blockchain can securely store and share patient records while maintaining privacy (Ibid). It can also facilitate smart contracts for real estate transfers and streamline operations in industries such as intellectual property protection (Ibid).
Despite its advantages, blockchain technology faces challenges, including scalability and regulatory complexities. Scalability issues arise when dealing with high volumes of transactions (Atlam & Wills, 2018). Regulatory and legal frameworks need to be developed to address the decentralised and pseudonymous nature of blockchain systems (Ibid).
In conclusion, blockchain technology has revolutionised digital transactions by providing a decentralised and secure system. It ensures transparency, accountability, and immutability of data, eliminating the need for intermediaries. Smart contracts offer advantages in terms of efficiency, cost reduction, and security. Blockchain technology has the potential to reshape various industries, but challenges such as scalability and regulatory complexities need to be addressed. As blockchain continues to evolve, its transformative impact will continue to shape the future of digital transactions and operations across multiple industries.
1.3 Types of blockchain technology
Blockchain technology comes in different forms to meet various needs. Among the classifications are public, private, consortium, and hybrid blockchain. Each type has unique features that serve specific purposes while maintaining decentralisation and secure data management.
Public blockchain is an open and decentralised network which allows anyone to join and conduct transactions (Jha, 2023). Anyone can view, write, and check the ongoing actions on a public blockchain. This contributes to the self-governed, decentralised nature often highlighted in blockchain discussions (Sharma, 2022). The basic use of such blockchain is for exchanging cryptocurrencies and mining.
Private blockchain operates with limited access, exclusively for a specific group. Unlike their open counterparts, private blockchains offer controlled entry and involve a more centralised approach (Kawamoto, 2022). They find utility among businesses, organisations, and coalitions, prioritising confidentiality, security, and adherence to rules. This type of blockchain ensures quicker transactions, improved privacy, and the ability to tailor functions to users specific requirements.
Hybrid blockchains are a merge of both public and private blockchains. In a hybrid blockchain there are areas which are public and transparent, and others that are private meaning that not everyone has access to them (Rawat, 2021). Records and transactions are typically not created as a public blockchain, but this can be confirmed by authorised access through smart contract. Hybrid blockchain is economical as it protects the rights of users data while allowing third-party exposure to the data (Jha, 2023). These factors make hybrid blockchains fitting whenever you need stability among privacy and transparency.
Consortium blockchains, a distinctive type of blockchain technology, cater to the collaborative needs of specific industries or groups (Campbell, 2023). Unlike public blockchains that are open to all and private blockchains that are exclusive to a single entity, consortium blockchains gather a select group of participants who share control over the network (Haider, 2023). This controlled participation fosters trust among members and ensures privacy while allowing for a degree of decentralisation. Industries such as supply chain management, where multiple stakeholders need to access and share information securely, find consortium blockchain valuable. By striking a balance between openness and confidentiality, consortium blockchains empower businesses to collaborate seamlessly, enhancing transparency and efficency within their respective ecosystems.
In conclusion, the variety of landscapes in blockchain technology offer solutions for a variety of needs. Public blockchains provide open and decentralised networks for transparent transactions, while private blockchains prioritise controlled access and security. Hybrid blockchain blends privacy and transparency in other words it merges public and private blockchain, and Consortium blockchain caters to collaborative needs of specific industries. Each type addresses distinct requirements, fostering efficiency and trust within their respective domains.
1.4 Advantages of blockchain technology
Blockchain technology shines in many directions as it is dominantly becoming the main source of data management in the business sector. Bhudi (2022) states that some advantages included in blockchain technology are security, faster transactions, transparency, immutability and instant traceability.
Transparency
In the blockchain transparency allows users to view all transactions on a public ledger. As blockchain technology helps to support trust and steers away from misunderstandings, it also reduces the risk of fraud, increases accountability and market efficiency. By using a distributed ledger blockchain transparency is achieved, which allows anyone access to transactions recorded on a network of devices (Frankenfield, 2023). In regular systems you cannot verify information and data whenever you want as all data is not public. In addition they are centralised and do not have transparency. Without transparency users are unable to trace back to original transactions and are unable to distinguish if fraud is happening (Budhi, 2022).
Increased Speed and Efficiency
Transaction speed is very important as customer satisfaction is important. Williams (2022) states that conventional non-digital methods take a long time and are prone to human errors and regularly are in need of third party intervention. Transactions can be finished swiftly and efficiently by automating responsibilities with blockchain technology. The blockchain is able to hold information removing the need to use paper. This makes clearing happen swiftly as integrating many ledgers does not need to happen during the transaction.
Immutability
Immutability means that transactions are not able to be modified or removed after they have been entered into the blockchain (Raisinghani, 2023). All transactions are correctly authenticated and marked with the date of the blockchain, this produces a lasting record.This means that blockchain can be used to find data across time, creating a reliable source of data (Williams, 2022).
Security
Once data is recorded on a blockchain, it cannot be altered or deleted. This immutability ensures the integrity and security of information, making it highly resistant to fraud and unauthorised changes. Blockchain uses advanced cryptographic techniques to secure transactions and data, providing a robust layer of protection against hacking and unauthorised access. The decentralised nature of blockchain means that there is no central point of control, reducing the risk of a single point of failure or a central authority being compromised.
Faster Transactions
Blockchain transactions are processed quickly due to the elimination of intermediaries and the use of decentralised consensus mechanisms. This efficiency is particularly beneficial for financial transactions and cross-border payments. Blockchain networks operate 24/7, allowing transactions to occur at any time, including weekends and holidays, without the limitations of traditional banking hours. Smart contracts on blockchain platforms automate transaction processes, executing predefined actions automatically when specified conditions are met, further speeding up transactions.
Instant Traceability
All transactions on a blockchain are recorded in a transparent and chronological manner. This visibility allows for instant traceability of assets or products through the entire supply chain.
Participants in a blockchain network can access real-time updates of transactions and data, providing instant insights into the status and history of assets. Blockchain’s immutable ledger ensures that a complete and unalterable history of transactions is available for auditing and verification, which is especially valuable in industries like logistics and food safety.
Real World Example
Blockchain is a major asset to the pharmaceutical industry, due to its strained privacy standards, global regulations and law enactment it is a benefit to the industry. With the use of blockchain it helps to safely maintain patient health data and effectively speeds up clinical trials (Arora, 2023).
1.5 Drawbacks of blockchain technology
Blockchain technology is quickly becoming one of the most revolutionary technologies of the modern era. However, despite its numerous advantages over traditional systems, blockchain still faces some challenges that need to be addressed, of which some of them include the costs involved, speed and privacy.
1.5.1 High costs
Blockchains are known to be much more expensive than regular banking systems (Budhi, 2022). Team (2022) states that this is due to the fact that each transaction made on the blockchain requires a high amount of energy, so much that the average cost-per-transaction is between 75 and 160 US Dollars (Golosava & Romanovs, 2018). This clearly demonstrates the high energy costs required to power a single transaction, and is of course a huge setback to businesses (especially startups) who wish to implement blockchain into their systems.
1.5.2 Scalability and speed
The speed at which blockchain transactions are carried out is extremely slow due to a number of factors. One of these is scalability. Team (2022) have declared that the size of a single block is fixed at 1 MB, which limits the number of transactions each node can handle (S, 2023).
Not only does this slow down the speed of the transactions, but it can also be laborious to edit a block once it has been recorded (Ibid). This is because the data and code in all the blocks involved must be re-written, which is not only tedious in terms of time but also costly (Budhi, 2022).
In addition to the previously stated, blockchain also performs more operations than a standard banking system, slowing down the transaction speed even more. This is as a blockchain must undergo a series of functions including signature verification, consensus mechanisms including proof-of-work and redundancy checks (Budhi, 2022). While all the previous does indeed help with the security of blocks, they do unfortunately slow down the speed at which transactions are made.
1.5.3 Lack of understanding and trust in blockchain
Blockchain technology has only started to come to light recently, with its major turning point occurring in 2014 (Sheldon, 2021). However, as it is a technology still in its early stages, people around the globe do not yet have an understanding of blockchain and thus do not trust the technology yet and are not so willing to invest in it as its future, however bright, remains uncertain as the regular banking systems and regular cryptography are more stable and trusted across the globe (Team, 2022).
1.5.4 Environmental concerns
While blockchain technology presents itself as a trailblazer in many aspects, its energy consumption remains a pressing concern. The energy-intensive process of mining, especially in proof-of-work-based blockchains like Bitcoin, has garnered criticism for its environmental impact (Budhi, 2022). The vast computational power required to solve complex mathematical puzzles and validate transactions not only drives up costs but also contributes to a significant carbon footprint. As the world’s focus shifts toward sustainability, the ecological implications of blockchain cannot be overlooked.
1.5.5 Privacy and scurity challenges
Despite its reputation for security, blockchain is not impervious to breaches. Transactions within a blockchain are often touted as immutable and secure due to cryptographic mechanisms. However, vulnerabilities can arise from improper implementations, smart contract bugs, and social engineering attacks (Sheldon, 2021). The inherent transparency of blockchain, which allows all participants to access and validate all transactions, might lead to privacy concerns in contexts where sensitive data must be protected. Striking the right balance between transparency and privacy poses an ongoing challenge.
1.5.6 Regulatory and legal complexities
Blockchain technology operates across borders, which can lead to regulatory and legal complexities. The decentralised and pseudonymous nature of many blockchain systems makes it challenging to ascertain the legal responsibilities of different participants in case of disputes or fraudulent activities (Team D, 2022). Regulatory bodies worldwide are still grappling with how to classify and oversee blockchain-based assets, initial coin offerings, and decentralised applications. This uncertainty can hinder the widespread adoption of blockchain in industries that require clear legal frameworks.
1.5.7 Interoperability and fragmentation
The blockchain landscape is marked by a multitude of platforms and protocols, each catering to different use cases and industries. However, this fragmentation can hinder interoperability—the seamless interaction between different blockchains and their respective ecosystems. Efforts are underway to develop cross-chain interoperability solutions, but achieving compatibility between diverse systems remains a technical challenge (S, 2023). The lack of standardised protocols can result in siloed networks, inhibiting the potential benefits of a truly interconnected blockchain ecosystem.
To sum up, blockchain technology has quite a few challenges despite its massive success in the modern point of view. Drawbacks such as high costs involved in transactions, scalability and speed issues, a lack of understanding, environmental concerns due to energy consumption, security challenges, legal complexities, and interoperability and fragmentation. This shows how blockchain is still an evolving technology, and if it overcomes all its drawbacks, has the potential to completely revolutionise the world of technology.
2. The implication of blockchain technology in healthcare
The healthcare sector is poised for transformation, driven by the pressing need for enhanced quality and accessibility of health services. The urgency to develop advanced technologies aligns with the industry’s shift towards patient-centric care and streamlined healthcare resources. In this context, the integration of blockchain technology emerges as a transformative force that holds promise across multiple dimensions of healthcare, including electronic medical records (EMR), drug/pharmaceutical supply chain, remote patient monitoring (RPM), health insurance claims, health data analytics, dental, industry, and legal medicine.
One of the most notable applications of blockchain in healthcare is the management of EMRs. The secure storage and efficient management of patients’ personal, medical, and health-related data are central to healthcare operations. The inherent characteristics of blockchain – decentralisation, immutability, data provenance, reliability, and robustness – converge to establish a compelling case for EMR storage and management. Moreover, blockchain’s integration of smart contracts, security features, and privacy mechanisms further enhances the suitability for securing patient’s electronic medical records. Notably, the European General Data Protection Regulation (GDPR) mandates explicit patient consent for sensitive data processing, making Blockchain an ideal technology for empowering patients to control data sharing and processing (Agbo, Mahmoud & Eklund, 2019).
Successful implementations abound. Guardtime secures over a million records in Estonia using blockchain, while projects like MedRec and Gem Health Network (GHN) showcase the technology’s potential for seamless data sharing among healthcare stakeholders. Initiatives such as Healthbank, Medicalchain, and Healthcoin empower patients and strive for cross-border data exchange (Agbo, Mahmoud & Eklund, 2019).
Challenges, however, stand in the way of realising patient-centric blockchain-enabled EMRs. Interoperability, scalability, patient management, data security, and privacy concerns are significant barriers. Yet, strategies are emerging to address these challenges. Combining cloud storage with blockchain for data handling addresses scalability concerns. Innovative cryptographic schemes strengthen data security, and privacy-preserving schemes ensure patient confidentiality. Initiatives like Healthchain, Ancile, and MedRec demonstrate the feasibility of integrating blockchain into EMR applications (Ibid).
2.1.1 Diverse applications in healthcare
Beyond EMR management, blockchain technology permeates various other healthcare domains. The drug/pharmaceutical supply chain benefits from blockchain’s transparency and traceability, countering counterfeit medications. In biomedical research and education, blockchain safeguards data integrity, facilitates peer review, and revolutionises health professions education. In addition, blockchain technology facilitates real-time remote patient monitoring, enabling healthcare providers to access critical patient data, monitor health parameters, and respond promptly to health-related incidents, thereby improving patient outcomes. Leveraging blockchain for health insurance claims streamlines the claims processing workflow, reduces administrative overhead, and enhances transparency, ultimately resulting in more efficient and cost-effective healthcare operations (Ibid).
2.1.2 Unlocking possibilities: blockchain’s impact on healthcare
The evolution of blockchain technology in healthcare is met with growing enthusiasm, even in its nascent stages. Early adopters within the healthcare ecosystem have embraced this technology with optimism. In the years to come, blockchain’s holistic vision for healthcare transformation is poised to tackle prevailing structural issues head-on. Its potential lies in fostering effective collaboration between patients, practitioners, and pharmacists, streamlining workflows, improving payment options, and ultimately decentralising patient health history records. With powerful allies like machine learning and artificial intelligence by its side, blockchain is poised to carve out a prominent role in reshaping health care as we know it (Haleem et al., 2021).
In summary, blockchain technology has marked the beginning of a transformative era in healthcare. Through its capacity to facilitate effortless data sharing and efficient data delivery, it serves as the cornerstone for cost-effective therapies and advanced treatments. As the healthcare sector advances into the digital realm, the significance of blockchain technology becomes more evident. Its far-reaching effects extend from pharmaceuticals to logistics, from interactions between healthcare providers and patients to the decentralisation of data. While it continues to gain ground in the financial sector, Blockchain holds a multifaceted potential for healthcare, promising a future where innovation and technology unite to enhance patient care.
2.2 The implication of blockchain technology manufacturing
As blockchain technology continues to grow, it comes as no astonishment that it has infiltrated the manufacturing industry and has since then been paramount in the area’s progression. By providing a secure, transparent and immutable record of transactions in blocks, blockchains have been able to and will continue to improve the traditional manufacturing industry (Iredale, 2023).
2.2.1 Transparency and the supply chain
One major area of manufacturing which blockchain has been involved in is the supply chain. A supply chain can be defined as a network of all the resources required to create and sell a particular product (Lutkevich, 2021).
In a traditional system of the supply chain, there lie a variety of issues such as errors in recorded data, duplicated payments, missing packages. All of these issues essentially lead up to one main problem: finding these mistakes are difficult and costly to detect as the supply chain is extremely complex (Gaur & Gaiha, 2020). A visualisation of such a supply chain is demonstrated in Figure 1, below:
Figure 1: The flow of the Supply Chain Management (Recurrency, 2023)
There have been several attempts over the years to fix such problems such as using audits, RFID tags, etc., however they all flaw in some way (Gaur & Gaiha, 2020). This is where blockchain technology comes into play. All data, pieces of information and people involved are assigned unique identifiers, known as digital tokens.
Transactions are recorded as token transfers on the blockchain, as opposed to a traditional ledger, and have the ability to record the physical steps in a transaction and possess an audit record that can hold more data than a regular ledger. Additionally, blocks are encrypted in a peer-to-peer network that ensures transparency and security of data to make sure data does not get lost or corrupted as tampering with said blocks is extremely difficult. Due to the transparency of this, potential error sources can be easily pinpointed (Ibid).
Therefore, the usage of blockchain technology in the supply chain aids in minimising execution, coordination and traceability problems, and overall making the process of manufacturing easier for all involved (Ibid).
2.2.2 Beyond Supply Chain: Exploring Additional Impacts
The transformative influence of blockchain technology within the manufacturing sector extends well beyond its role in supply chain transparency and product authenticity. While these aspects have undoubtedly revolutionised the industry, the broader implications of blockchain are poised to reshape manufacturing in ways that foster efficiency, security, and compliance (Jianting Xia, 2023).
The enhanced traceability and transparency that blockchain offers in supply chains have set a precedent for improved processes throughout manufacturing. Beyond tracking the movement of goods, blockchain’s decentralised ledger can streamline various stages of production. From procurement to quality control, the secure and immutable nature of blockchain records minimises disputes and ensures the integrity of critical data (Gaur & Gaiha, 2020).
In industries governed by stringent regulations, such as pharmaceuticals or aerospace, blockchain’s potential to ensure compliance is of paramount importance. By providing an indelible record of each step in manufacturing, including adherence to safety protocols and quality standards, blockchain acts as a safeguard against non-compliance issues that could have far-reaching consequences (Sana Al-Farsi, 2023).
The concept of tokenisation and fractional ownership, made feasible by blockchain, introduces novel business models and investment opportunities. Physical assets and intellectual property can be digitised into tokens, enabling easy sharing, trading, and collaboration. This not only expedites processes like licensing and patent management but also democratises investment in manufacturing projects (FM Contributors, 2023).
In essence, blockchain is orchestrating a holistic transformation of manufacturing. As industries embrace this technology, the lines between traditional business processes and digital innovations blur, yielding a landscape where efficiency, security, compliance, and collaboration converge. The initial strides taken in achieving transparency and authenticity through blockchain are merely the prologue to a much larger narrative of change across the entire manufacturing spectrum.
Incorporating blockchain technology into the manufacturing industry marks a pivotal advancement, notably witnessed through its application in supply chain transparency and product authenticity. Yet, the influence of blockchain transcends these achievements. From optimising operations and ensuring regulatory compliance to enabling novel business models through tokenisation and fractional ownership, blockchain’s impact resonates across the entire manufacturing landscape. As industries continue to harness its capabilities, the intricate tapestry of blockchain weaves together efficiency, security, collaboration, and transformative potential, signifying a new era of innovation that extends far beyond the confines of traditional manufacturing norms.
All things considered, blockchain technology has left its mark and will continue to do so in the manufacturing industry. Not only has it revolutionised supply chain transparency and error detection in product authenticity, but also catalysed a broader transformation in the area. By optimising operations, ensuring compliance and security, and introducing novel business models by means of tokenisation, blockchain technology has been able to and will continue to pave the way for a new manufacturing paradigm.
3. The future of blockchain technology
Today, Blockchain has made the above mentioned human efforts replaceable and presented us with more efficient and equitable ways to accomplish these tasks. Blockchain holds immense promises and opportunities as it continues to evolve, transform industries, and reshape various aspects of our digital world (Cai, 2019). With its foundational principles such as decentralisation, transparency, and security. It was first applied into cryptocurrencies like bitcoin, proving that banks are no longer needed for safe transactions, and under blockchain technology no transactions or information will ever be lost (Reiff, 2021).
The impact of blockchain doesn’t stop at cryptocurrencies; it has spread across other industries from finance to healthcare, to education and cyber security. We will be focusing on these four industries and understanding how blockchain technology can revolutionise them in the future.
Education
Nowadays, some universities and institutes have applied blockchain technology into education, and most of them use it to support academic degree management and an evaluation for learning outcomes (Raj, 2023). All information about research, experience, skills, online learning, are data that is safely stored and accessed on a blockchain network in appropriate ways. Students who attend a project in MIT and pass the assessment will receive a certificate that is stored on a blockchain network (Chen, 2018). Blockchain technology can be applied to education in many innovative ways beyond just diploma management and achievements assessment. Blockchain currency can address negative factors affecting student learning outcomes like motivation and financial struggle (Ibid). By implementing the term ‘learning is earning’, students can be motivated through blockchain based smart contracts (Chen, 2018). Teachers would award real digital currency awards, which can be stored in an education wallet, used for tuition, or exchanged for real currencies, enhancing and engaging students to thrive when learning.
Healthcare
The healthcare industry is big and complex, with many different individuals involved in patient care. These include doctors, hospitals, insurance companies, and government agencies. Blockchain technology could streamline communication between all the parties, making it easier to exchange information for patient care. It can save the healthcare industry billions of dollars in the future. In the past there were many incidents of medical data being stolen or hacked, over 50.4 million patient records were breached in 2021 (Rogers, 2022). Blockchain technology can help reduce the risks of data fraud, increase transparency and create a more efficient healthcare system.
It can save the healthcare industry billions of dollars in the future and improve the lives of millions of patients. Healthcare facilities can protect patient data and shape how patient care is delivered in the future. For now, the healthcare industry must find cost-effective, practical ways to address the challenges of blockchain implementation. Using the latest innovations, such as robust software like ISI Technology and other healthcare trends, can change the face of healthcare.
Finance
In the great world of finance blockchain is used to increase transparency, security and speed in transactions, when dealing with money. In the future this means a decrease in charges that businesses have to pay due to the elimination of intermediaries, such as banks saving on transaction bills and any other concurrent fees (Baig, 2023). With the help of blockchain it can digitalise and validate information (e.g., letters and credit card bills) meaning that any risks mentioned above do not come into place. This is done as it is important to keep any financial records accurate, secure and up to date. Khan (2022) states that blockchain without effort supplies efficiency when it comes down to following financial possessions. It supplies a transparent ledger system, creating an effortless way to find and manage the inflow and outpouring of cash and any other documentation.
Cyber Security
With the rapid growth of modernisation, changes are undeniable and so the world is becoming progressively digital. This modification has created a new wave of threats and dangers. This means that cyber security is essential to any businesses, governments and almost anyone else storing valuable information online. Due to the constant refinement of mobile devices, cloud services and artificial intelligence, it is difficult to steer away from any dangers. Khan (2022) states that blockchain has a solution to cyber security which consists of using a basis of ledger technology and decentralisation, this makes it ideal to strengthen cyber security. It helps to secure personal pieces of information, by forming a combined API framework which in due course allows cross- messenger transmission capability keeping your information stays secure.
4. Conclusion
In conclusion, blockchain has the ability to develop and be the main source of data management in our society. Blockchain is distinguished by its critical role in cryptocurrency, for sustaining a protected and decentralised history of transactions (Hayes, 2023). Blockchain technology is an unchanging, distributed and decentralised ledger whose fundamentals are made up of a chain of blocks, where each block stores a set of data. The blocks are joined together using cryptographic techniques and a sequential chain of information (A.S, 2023).The technical aspect of blockchain technology consists of smart contracts which make transactions quicker while also reducing their costs. The distributed ledger which is a database that is transmitted over the computer network and consensus mechanism which allows the network of computers to comply with the state of the ledger (Ravikran, 2023). There are four main types of blockchain, the public blockchain is open to anyone to access its information. The private blockchain is a confined network which means that users with authorised access are able to access its information. A hybrid blockchain incorporates both public and private blockchains, which means that the organiser chooses who has access to what information. Consortium blockchain similarly to a hybrid blockchain consists of private and public blockchains, but its difference is that multiple organisational members collaborate on a decentralised network (Jha, 2023).
In the evolving landscape of data management, blockchain technology evolves as an important aspect rehashing the fundamentals of the business sector. As highlighted by Bhudi (2022), its advantages encompass security, swift transactions, transparency, immutability, and instant traceability. Transactions can be finished swiftly and efficiently by automating responsibilities with blockchain technology and fostering trust. Immutability means that transactions are not able to be modified or removed after they have been entered into the blockchain (Raisinghani, 2023). All transactions are correctly authenticated and marked with the date of the blockchain, this produces a lasting record. Moreover, its accomplishment in facilitating faster transactions and instant traceability revolutionises industries, as seen in the pharmaceutical sector’s enhanced privacy and expedited clinical trials (Arora, 2023). Blockchain’s impact is undeniable, paving the way for a data-driven future. Blockchain’s rising potential is faced by the following challenges: blockchains are known to be much more expensive than regular banking systems (Budhi, 2022). Team (2022) states that this is due to the fact that each transaction made on the blockchain requires a high amount of energy, so much that the average cost-per-transaction is between 75 and 160 US Dollars (Golosava & Romanovs, 2018). The speed at which blockchain transactions are carried out is extremely slow. Blockchain technology has only started to come to light recently, with its major turning point occurring in 2014 (Sheldon, 2021). While blockchain technology presents itself as a trailblazer in many aspects, its energy consumption remains a pressing concern. The energy-intensive process of mining, especially in proof-of-work-based blockchains like Bitcoin, has garnered criticism for its environmental impact (Budhi, 2022). Blockchain technology is revolutionising industries, especially banking. Its secure, decentralised nature enhances security and transforms cross-border transactions, supply chain finance, identity management, and asset tokenisation. While poised for greatness, blockchain’s evolution is ongoing. As Kayal et al. (2021) note, it must mature to replace conventional banking norms, embracing technological advancements.
The widespread implications of blockchain technology across diverse sectors like banking, healthcare, and manufacturing underscore its transformative potential. In banking, blockchain ensures secure and transparent transactions while reducing operational costs. Healthcare benefits from enhanced data interoperability, enabling seamless patient care and secure medical record management. In manufacturing, supply chains become more efficient, traceable, and accountable through blockchain’s decentralised ledger (Jenkins, 2023). Looking ahead, the future of blockchain holds remarkable promise. As scalability and energy efficiency improve, adoption will likely surge. Decentralised finance (Auer, 2023) would reshape traditional banking, and the Internet of Things integration might revolutionise supply chain management. However, regulatory challenges and the need for industry standards persist. Collaboration between tech innovators, regulators, and industries will be crucial for harnessing blockchain’s full potential. While obstacles exist, the undeniable benefits of security, transparency, and efficiency ensure that blockchain will continue to drive innovative solutions, reshape industries, and shape the digital landscape of tomorrow (Xueming Cai, 2019).
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