Home » The Effect of Blockchain Technology on Different Industries: What Makes it Secure?

The Effect of Blockchain Technology on Different Industries: What Makes it Secure?

by Gözde Karakaya

Blockchain technology is an up-to-date technology that has increased in popularity recently. It has great transformation potential in a wide variety of fields. Blockchain opens up new areas as well as the innovations it brings. One of the most important reasons behind the blockchain is effective management. It increases the resilience of the system against privacy and cyber security risks. That’s why a growing number of industries have been adopting blockchain technology for their digital systems. This article will discuss the effect of blockchain technology on various industries and what makes this technology secure.

How does Blockchain Impact Various Industries?

Finance

Many banks and financial institutions have been working towards organizing corporate and personal financial transactions on the Blockchain. Blockchain has facilitated banking processes in many ways: enforcing identity verification and management process,  introducing crypto payments and eradicating intermediaries.

Real Estate Industry

Using blockchain technology significantly reduces property disputes and the need for intermediaries to document the owner’s access. Rental agreements in the private sector can also be made with this system. In this way, individuals and institutions save costs and time.

Healthcare Sector

With blockchain technology, the drugs are systematically verified and traced until reaching the patient. Moreover, the medical records and documents on the blockchain can be easily distributed to different doctors without needing personal files.

Government Sector

Blockchain technology reduces the burden in terms of filing and auditing taxes and reduces the need for various intermediaries in the process. Moreover, it can make the entire voting process more transparent and secure.

Education industry

Aside from the educational app improvements, Blockchain has altered the process of record keeping and verification of certificates. That is, the concept of verifiable open badges has enabled students to maintain a permanent record of their certificates and other documents and share them with prospective employers. Also, it streamlined public guidance for both students and families. 

Energy sector

The introduction of Blockchain has made it possible to record production as well as usage of energy. It also proposes a better way to handle payments.

What Makes Blockchain Technology Secure?

Many systematic measures are taken for the security of data in traditional database systems. There are risks such as avoiding these measures due to high-security costs. Apart from this, one of the biggest problems of existing systems is to render the system dysfunctional or to interfere and change data with a DDoS attack.

The understanding of security varies among blockchain applications. However, there are basically a few features. 

Thanks to its distributed structure, it has system flexibility against DDoS attacks. Even if there is a node that is out of service, the remaining node can continue to operate without data loss. 

Thanks to the hashing passwords used, even if the data is changed in the node that is out of the system, it will not be able to participate in the agreement and will not be verified by other nodes. 

In addition, in most systems, users pay a small transaction fee to the network to process transactions or for smart contracts to work. These fees not only cover the maintenance costs of the Blockchain but also protect against malicious people.

In summary, a careful balance between decentralization and security is vital to creating a reliable and efficient cryptocurrency network. As blockchain usage areas evolve, security systems will change to meet the needs of different applications. 

Blockchain technology is specifically designed to pay off in the long run. Blockchain has irreversible and highly encrypted data blocks that allow us to fight against any fraudulent conduct.

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