Blockchain technology is revolutionising the world: from the way companies do business to the way governments act. Considered the world’s most disruptive innovation since the advent of the internet, blockchain has the potential to transform the lives of millions of people socially and economically.

The solutions provided by blockchain are increasingly sought after by businesses and open up a world of opportunities for positive social impact. However, this emerging technology is still poorly understood or unknown to many. In this article, we seek to deconstruct blockchain technology and explain its potential to impact our lives.

What Is Blockchain Technology?

Blockchain is a technology that enables the tracking and storage of information, preventing digital data from being copied, altered, or deleted. Inspired by the ancient method of ledgers that made a centralised record of financial movements, blockchain is designed to be decentralised and stored on multiple computers in total synchronisation across the world.

With blockchain technology, no information is changed or deleted. Only new information is added, which makes blockchain highly efficient, transparent, and tamper-proof. In addition, blockchain allows transactions of any asset to be recorded with significantly lower risks and costs than the traditional system.

Why Does My Company Need Blockchain Technology?

Focused on their social responsibility, large global companies are already taking the first steps in adopting blockchain technology and beginning to understand its long-term potential.

Blockchain has come as an answer to a series of problems such as the exponential increase in cyber-attacks, fraud, and data misappropriation, as well as the distrust of the financial system caused by the 2008 financial crisis.

There are several sectors that can take advantage of blockchain and the demand for IT services to implement this emerging technology is growing. Blockchain is extremely attractive for government systems and financial services as it is crucial to protect all kinds of transactions, making data less vulnerable to cyber-attacks. By 2024, investments in this technology are still expected to exceed $19 billion.

The key benefits of blockchain technology:

– Decentralisation: Data is stored in a shared, public ledger, synchronised on multiple computers simultaneously. Thus, the information becomes more secure and virtually impossible to be tampered with by hackers.

– Transparency: Since the technology records all transactions, the whole process is transparent and reliable. Any attempt to alter data would be easily detectable.

– No intermediaries: Each user can perform information transactions directly and almost instantaneously, and there is no need for a relationship with intermediaries.

– Cost reduction: Without the need for intermediaries in transactions, the operational costs of companies are significantly reduced.

– Traceability: It is possible to trace products and services in supply chains of complex industries, such as textiles, clothing, animal, forest products, and recyclable products.

Technology for Good: The Social Impact of Blockchain Technology

From financial services to government regimes, traditional systems are heavily exclusionary and discriminatory. Blockchain technology is perceived as a social investment that has the potential to transform society. This technology will certainly affect all major industries, changing the way people and societies interact.

– Financial sector: Millions of people do not have a bank account and there are serious difficulties in accessing loans due to the requirements of banks. With blockchain technology, there is no need to go to a bank to have an account as it is possible to transfer and receive money using cryptocurrencies such as Bitcoin.

– Healthcare sector: This emerging technology allows for greater access to medical records and data storage, expanded electronic access to records, as well as measures against counterfeit medicines.

– Food sector: Blockchain can be used to trace the history of food and verify its authenticity, ensuring its quality to consumers.

– Electoral systems: Corruption and fraud are two of the main problems many countries face. Blockchain can provide new voting mechanisms that are more secure, autonomous, and reliable, avoiding the risk of data breaches and helping to fight corruption.

– Renewable energy: Blockchain enables the mass production of energy through natural resources and helps the population that does not have access to an electricity grid.

– Social organisations: Blockchain makes it possible to effectively track the flow of donations from start to finish and get them to vulnerable people faster, contributing with greater transparency to mitigate social inequalities.

– Personal records: Blockchain makes it possible to keep important records with personal and medical information that, once in the system, become permanent and impossible to be unduly altered, and it can be accessed anywhere.

We are dedicated to helping clients discover the best solutions to address today’s challenges. Blockchain technology can transform the lives of millions of people and help build a better world. Bet on innovation and talk to us to learn more about this emerging technology!