Blockchain technology is not only used for cryptocurrencies. I would like to introduce three uses in fields other than cryptocurrencies where blockchain technology is expected to play an active role. Knowing the fields where blockchain technology is used may change the way you look at blockchain.
Differences and characteristics between blockchain and virtual currency
Many people think that blockchain and virtual currency are inextricably linked. Recently, attention has been focused on blockchain technology, but what is the difference between virtual currency and blockchain technology?
I would like to see the difference between the two and their properties.
Blockchain is not equal to virtual currency!
Virtual currency is a currency that does not exist in reality but can be paid for services on the Internet. It is legally defined as having the same value as money.
Virtual currency is a currency created using blockchain technology, but virtual currency is not blockchain. Blockchain is one of the technologies that support cryptocurrency transactions.
Blockchain can be used for more than just cryptocurrencies
Blockchain technology is a technology that is known for virtual currency attracting attention in the world, but it is a technology that existed before virtual currency appeared. By applying this technology, it is expected to play an active role in various fields other than virtual currency.
Distributed management of data like blockchain technology makes it possible to manage data more safely and create an environment where tampering and fraud are extremely unlikely.
In addition, since information is shared and monitored through the network, it is possible to handle information with high transparency, and it becomes possible to conduct reliable transactions in the course of work.
Types of blockchain virtual currency and three other uses
Blockchain technology is one of the most superior technologies that are the foundation of virtual currency. I would like to briefly explain the types of virtual currencies developed using blockchain technology and three other uses for which blockchain technology is used.
Over 1500 types of virtual currency! 14 species that can be bought and sold in Japan
Currently, there are more than 1,500 types of cryptocurrencies around the world. It can be said that it is difficult to accurately grasp the number when including virtual currencies that have not yet appeared in the world.
Among them, there are about 14 types of virtual currencies that can be bought and sold in Japan. From now on, new virtual currencies will be created, and the number of virtual currencies that can be traded on Japanese exchanges will increase.
Usage 1: Authenticity compensation (apostille)
Blockchain technology is also applied and utilized in the field of art. By managing important information that determines the value of a work of art, such as the ownership history and authenticity of expensive works of art, on a blockchain, a high degree of anonymity can be maintained and information falsification can be prevented.
Blockchain technology can also be expected to be used when raising funds using expensive works of art.
Usage 2: Used in games and content
Blockchain technology is used in systems such as games and content. By using blockchain, it is possible to manage data safely, and since it is virtually impossible to tamper with data, the risk of pirated copies being distributed can be reduced.
Japanese games are very popular all over the world, so if blockchain technology is used for fun and content, there is an advantage that it will be easier to manage various things.
Usage 3: Expected to be diverted to government agencies in the future
It is also expected that blockchain technology will be applied and introduced into the systems of local governments and ministries. When the introduction of blockchain is realized, it is possible to reduce various costs by sharing information.
In addition, since the system will not go down even if the data is falsified or cyberattacked, it is possible to prevent all operations from stopping. If it becomes possible for local governments and ministries to reduce costs, the lives of citizens may gradually change for the better.
Why blockchain is used for cryptocurrencies and beyond?
Blockchain technology is expected to be used not only in virtual currency but also in various fields, and development is progressing. Why are the characteristics of blockchain used in this way? I would like to find out why.
It is easy to manage the quality of products and goods, and it is possible to reduce costs.
By introducing blockchain technology, it is possible to safely manage the quality of products and merchandise. Since data is shared and managed by everyone, it is extremely difficult for fraud to occur, and the cost of managing data can also be reduced.
Data management is easy and information can be disclosed to anyone
Blockchain also shares information by sharing networks. With decentralized data management, anyone can easily manage data and disclose information to anyone. The information is always transparent and highly reliable.
Theoretically, the number of system downs is greatly reduced.
Blockchain technology enables distributed management of data on a network. Even if a server is attacked by a cyberattack or the system breaks down, other servers will not be affected, and the chances of the system going down will be greatly reduced.
It is possible to avoid the risk of the entire system stopping by decentralized management of data instead of the conventional centralized function.
You can build a convenient system by using the app
By using an application that introduces blockchain technology, you will be able to track the movement of goods and find out where and how the goods were made. Since information is connected like a chain, it is possible to follow and examine information in chronological order, and depending on the application, it will be possible to build a convenient system.
The future of blockchain and cryptocurrencies
How will the blockchain technology that supports virtual currency develop in the future and expand its playing field? I would like to introduce some benefits that companies can expect by introducing blockchain technology.
Blockchain technology can significantly reduce corporate costs
By introducing blockchain technology into corporate operations, significant cost savings can be expected. By using blockchain, it is possible to create a system at a lower cost than before. And when blockchain technology is introduced into the business, it will be possible to simplify business content and aim for further cost reduction.
Make it easier for companies to raise funds
By issuing virtual currency using blockchain technology, companies will be able to raise funds more easily than ever before. Blockchain technology is expected to play an even greater role in the future, and the value of that technology will become even higher.
By using virtual currency that uses that technology, it will be easier to collect funds.
The time and cost to introduce the system all at once is an issue for the future
Companies use their systems to perform various tasks. The introduction of blockchain technology can be expected to improve operational efficiency and reduce costs.
However, I think that it is a complex problem for the company to completely renew the system, and it is also difficult for the staff who do the work. It can be said that companies will face challenges in the future as to when to introduce blockchain into their systems and how to deal with the associated costs.
Summary of blockchain and virtual currency
We have briefly seen how blockchain technology that supports virtual currency will be used in the future. Blockchain technology is expected to apply to any field.
An increasing number of companies are starting businesses using blockchain technology, and an increasing number of companies are considering introducing blockchain technology in the hope of reducing costs. Blockchain technology may become an inseparable part of our lives shortly.