How does Blockchain increase transparency?
While digital currencies are gaining in popularity, leading corporations and commercial organizations are actively interested in Blockchain technology.
Decentralized solutions can help get rid of intermediaries and proxies, therefore, they have huge potential in the financial sector. For this reason, most of the projects were initially focused on providing fast and secure transactions. However, Blockchain technology can be successfully used in other industries that have a direct impact on our daily lives.
Let us consider the possibilities of decentralized solutions by the example of five important areas of the economy, which are characterized by inefficiencies, insufficient transparency and significant costs for intermediaries.
Blockchain increases transparency in voting.
Elections for government officials and officials are held on a regular basis. However, they are so confusing and opaque that voters can never be sure of the accuracy of the results. A centralized system is becoming increasingly unreliable and vulnerable as hackers constantly improve their skills in falsifying elections.
Blockchain can be an effective solution to the problem of trust and verification.
At its core, it is an independent register of digital events, which can only be changed by agreement of all participants. Thus, persons interested in falsification of voting are not able to change the final result secretly from other participants. A striking example of the implementation of decentralized solutions in online voting platforms is Estonia.
Blockchain increases transparency in the property deals.
The real estate sector is characterized by extreme inefficiency and high cost of operations. The thing is in a long chain of intermediaries (agencies, brokers, commercial banks, inspectors, notaries, etc.), which slows down the transaction process, increases the likelihood of human error and increases the cost of doing business.
The technology of the distributed registry can serve as a public book, which contains all the data on financial transactions and property rights. The impossibility of artificially changing parameters allows you to get rid of the need for controlling persons and trustees. With the help of smart contracts, you can significantly speed up the execution of transactions without worrying about the compliance of the transaction with the stated requirements. If any condition is not met by one of the parties, the Smart contract will not allow you to conclude an agreement.
Blockchain increases transparency cybersecurity.
Every year, large corporations and commercial organizations suffer millions losses due to leakage of confidential information. Cybercriminals are constantly improving their skills, and are conducting more and more planned attacks in order to break into important databases.
Integration of decentralized solutions with security systems can significantly increase the reliability of the latter. Since Blockchain is an immutable register, in order to crack one block, it is necessary to crack all the others. This requires tremendous energy and tremendous computing power, which no hacker has.
How Blockchain Can Change Important Economic Areas. When buying a product in a store, we cannot be 100% sure that it complies with the description provided international quality standards. The information on the place of production indicated on the tag can be easily faked. This is exactly what most unscrupulous manufacturers do, who want to cash in at the expense of consumers.
Blockchain technology can help to solve some problems. For example, there are applications that allow you to track the location of the cargo and its route. Independent reporting enables customers to be sure that the product is manufactured and delivered from the exact location indicated on the label.
Blockchain increases transparency in banking sector.
Commercial banks and financial institutions conduct millions of cash transactions per day, using different payment systems and technological solutions. In some cases, customers have to wait a few days for the international transfer to reach its goal. In addition to this, the use of different payment systems entails large commissions, which makes many transactions economically disadvantageous.
The introduction of distributed ledger technology makes it possible to unify financial payments, accelerate transaction times and reduce transaction costs. Also a huge advantage is a high degree of protection
With a creative approach and rational thinking, Blockchain technologies can be used in almost any area of ??the economy.