Without obsessing over the technical details, the blockchain is a sophisticated database. The first application of blockchain technology was given by the Bitcoin network. However, After Bitcoin, many other blockchains and DLTs emerged, with different configurations, and basically we can say that there are currently public and private blockchains.each of these two, with their differences in implementation, degrees of privacy, among other particularities.
For Rodrigo Costa, managing partner and Head of Digital Business at Kron Digital, in addition to being the technology behind the popular Bitcoin cryptocurrency, which has existed since 2009, blockchain has been transforming and facilitating our daily lives.
“In various sectors of the economy, technology has been adopted in digital identification solutions, mobile payments, contracts, among other applications.”, he highlights.
The supply chain example
The European Parliament published a report: “How blockchain technology can change our lives“, where experts highlight its benefits for scenarios in which it is important track ownership histories, such as supply chain management.
Blockchain technology could improve supply chains by offering infrastructure for certification, registration and monitoring of inputs or products throughout the production and marketing line, offering transparency and reliability.
Rodrigo says that, in this way, the final consumer would have the power to know exactly the path that food or product has taken from the field or factory to their hands.
Without a transparent supply chain, the user does not know anything about the product they are buying, how it was grown or produced, what inputs or materials were used, who handled the transportation or how it was transported, and countless other similar questions remain unanswered.
QR codes can provide reliable information about the use of pesticides in plantations or about the factories of certain clothing brands.
Changes in the financial sector
The managing partner also comments that blockchain technology has the potential to streamline everything in our financial lives, from tax payments to investment statements to insurance claims.
“Think of credit cards, for example. At the moment, If you use your credit card to pay for something, the payment must go through four different steps. And the merchant will have to pay a processing fee of up to 3.5%. Thanks to blockchain technology, digital currencies like Bitcoin can simplify procedures and make the process almost free“. He continues.
Bitcoin is now being accepted by more retailers, and major credit card companies are looking for ways to make the digital currency a mainstream form of payment.
Many people continue to simply bet on the cryptocurrency markets and complain about their fluctuation, but it seems that they do not understand the true potential of the technology behind Bitcoin, especially in online transactions, which require high security.
“Everything looks very promising when it comes to blockchain adoption, and its applications and potential are still unfolding.Rodrigo concludes.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.