Blockchain has become one of the buzzwords that you hear in every industry. For many it might come as a surprise that originally it was designed to help stop fraudulent behaviour with the use of cryptocurrencies. However, the idea of blockchain could be utilised in a variety of industries.
Definition: Blockchain (now) refers to a decentralised network of servers, that takes specific information about any kind of transactions, and copies it onto every server running on that ‘chain’. In other words, nobody has ultimate control over it, it builds records that are then copied onto multiple screens, and if anyone alters a single character, the entire system is notified of the change immediately. Blockchain thus, is a solution for fraud, data manipulation, and illegal movement of capital.
In banking, it’s clear that blockchain can help reduce fraud. In fact in the UK alone, financial fraud losses totalled £768.8 million in 2016, and blockchain could have prevented this. If you think about all the forms of data that we use in all industries today, you can start to see that blockchain is not just a financial tool. Blockchain could work in any area that need verification; medicine, education, voting, food processing, mineral transportation, and so on. But there’s a catch… or more specifically a cost.
Right now, studies show that the amount of energy needed to run all the current blockchain and bitcoin activity is higher than the amount of energy consumed by 159 countries. In fact, the rate of growth shows that by 2020, the amount of energy needed will be similar to that of Denmark.
But with every obstacle comes an opportunity, and businesses have already started developing Green Blockchains. People will figure out how to continue the use of this technology and hopefully prove sceptics wrong about it being another bubble economy waiting to pop.