Five Application Scenarios of Blockchain Technology

The integrated application of blockchain technology plays an important role in new technological innovations and industrial changes. In the fourth industrial revolution with information technology as the main feature, how to take the lead and how to help the industry change in the process of blockchain digitization? This article focuses on five scenarios of the practical application of blockchain for blockchain practitioners and blockchain practitioners. Users transmit industry information, allowing readers to understand the blockchain industry from multiple levels and dimensions, so as to make their own correct judgments.

Blockchain is a distributed ledger (database) technology that connects data blocks in an orderly manner and cryptographically ensures that they cannot be tampered with and cannot be forged. In layman's terms, blockchain technology can realize the openness, transparency, non-tampering, non-forgery, and traceability of all data information in the system without the need for third-party endorsement. As an underlying protocol or technical solution, blockchain can effectively solve the problem of trust and realize the free transfer of value. It has broad prospects in the fields of digital currency, financial asset transaction settlement, digital government affairs, and evidence-based anti-counterfeiting data services.

The digital currency of blockchain technology

After experiencing physical objects, precious metals, banknotes, and other forms, digital currency has become the development direction of the digital economy era. Compared with physical currency, the digital currency has the characteristics of easy storage, low circulation cost, convenient use, easy anti-counterfeiting and management, breaking geographical restrictions, and better integration.
Bitcoin technically realizes an electronic cash system that does not require third-party transfer or arbitration, and both parties can directly transfer money to each other. In June 2019, Internet giant Facebook also released its cryptocurrency Libra (Libra) white paper. Whether it is Bitcoin or Libra, the underlying technology is blockchain technology.

Financial asset transaction settlement of blockchain technology

Blockchain technology has inherent financial attributes, and it is bringing about a subversive change to the financial industry. In terms of payment and settlement, under the blockchain distributed ledger system, multiple participants in the market jointly maintain and synchronize a "general ledger" in real-time. Payment, clearing, and settlement that can now be completed in two or three days can be completed in just a few minutes. tasks, reducing the complexity and cost of cross-border transactions. At the same time, the underlying encryption technology of the blockchain ensures that participants cannot tamper with the ledger, ensuring that transaction records are transparent and secure, and regulators can easily track transactions on the chain and quickly locate the flow of high-risk funds.
In terms of digital bills and supply chain finance, blockchain technology can effectively solve the financing difficulties of small and medium-sized enterprises. The current supply chain finance is difficult to benefit small and medium-sized enterprises upstream of the industrial chain because they often do not have direct trade relations with core enterprises, and it is difficult for financial institutions to assess their credit qualifications. Based on blockchain technology, we can establish a consortium chain network, covering core enterprises, upstream and downstream suppliers, financial institutions, etc. The core enterprises issue accounts receivable vouchers to their suppliers, and after the bills are digitized on the chain, the suppliers can Circulate between each other, each level of suppliers can realize the corresponding amount of financing with the digital bill proof.

Digital government affairs of blockchain technology

The blockchain can make data run and greatly simplify the work process. The distributed technology of the blockchain can allow government departments to concentrate on one chain, and all work processes are delivered to smart contracts. As long as the clerk passes identity authentication and electronic signature in one department, the smart contract can be automatically processed and circulated, and the follow-up is completed in sequence. All approvals and signatures. Blockchain invoice is the earliest application of domestic blockchain technology. Utilizing the openness, transparency, traceability, and immutability of blockchain technology, the transparent use, accurate delivery, and efficient management of poverty alleviation funds are realized.

Proof of blockchain technology and anti-counterfeiting

Blockchain can prove the existence of a file or digital content at a specific time through a hash timestamp, and its openness, non-tampering, traceability, and other characteristics are forensic authentication, identity certification, property rights Protection, anti-counterfeiting traceability, etc. provide the perfect solution. In the field of intellectual property, the digital signature of blockchain technology and the on-chain certificate can confirm the rights of text, pictures, audio, video, etc., and create and execute transactions through smart contracts, allowing creators to regain control of pricing power and preserve data in real-time. The chain of evidence covers the three scenarios of right confirmation, transaction, and rights protection at the same time. In the field of anti-counterfeiting traceability, blockchain technology can be widely used in food and medicine, agricultural products, wine, luxury goods, and other fields through supply chain tracking.

Data services of blockchain technology

Blockchain technology will greatly optimize existing big data applications and play a huge role in data circulation and sharing. In the future, the Internet, artificial intelligence, and the Internet of Things will generate massive data, and the existing centralized data storage (computing mode) will face huge challenges. Edge storage (computing) based on blockchain technology is expected to become the future solution. Furthermore, the non-tampering and traceability mechanism of blockchain on data ensures the authenticity and high quality of data, which becomes the basis for all data applications such as big data, deep learning, and artificial intelligence. Finally, blockchain can realize multi-party collaborative data computing under the premise of protecting data privacy, which is expected to solve the problems of "data monopoly" and "data island" and realize the value of data circulation.