After the launch of Bitcoin in 2009, Blockchain Technology was introduced for the first time in the world. At that time blockchain technology have no practical use except maintaining the financial transactions of the Bitcoin Network.
But in 2015, the whole scenario dramatically changed when Linux Organization launch their Private Blockchain Network ‘Hyperledger’ and on that same year a Russian Programmer Vitalik Buterin founded a similar public blockchain network like Bitcoin, named ‘Ethereum’. But Ethereum comes with an extra functionality named “Smart Contract”. So, what is Smart Contract? Well as the name suggests, Smart Contract is nothing but a digital contract written by using programming languages, which anyone can create and put it in the Ethereum blockchain network.
By using this smart contract it is possible to use the consensus mechanism of a blockchain network for solving many real-life problems.
Some real-life examples are – Voting – On the traditional voting system, when two or more person or political parties stands in the rally, a centralized election commission must be needed to conduct the voting system. The election commission works as a third-party authority between the people and political parties. Using the consensus mechanism of the Blockchain network it is possible to conduct an election much more efficiently and automatically without any centralized authority.
Countries like Switzerland already used blockchain technology for the voting of their country, and other countries are also planning to implement it. Database System – For running any web-based software system or even any website, anyone needs to maintain a cloud-based database management system, which is costly and impossible without a third-party operator. But using blockchain technology, it becomes possible to connect Client-side WebPages to blockchain networks with the help of writing smart contracts, for creating a decentralized web application.
This system is so much more cost-efficient, secure, and faster than a traditional database management system. Decentralized Finance – In a traditional market, if any company wants to make their company public, wants to launch their initial public offering (IPO), and want their company stocks available in the stock market, they have to rely upon the stock exchanges of their nation.
The stock exchange has the power to approve or reject any company from the stock market and no other company has the power to collect funds directly from the market without the authority of the stock exchange. The stock exchange works as a third-party middleman between the investors and the companies who need investment. But Nowadays Blockchain Technology just massively changed the game. By using Blockchain Technology, it becomes possible to create Decentralized Exchanges.
Uniswap, Pancakeswap, 1inch are the name of some popular decentralized Exchanges. By using Blockchain Technology, anyone or any institutes can create ERC20 Tokens by using Ethereum Smart Contracts, declaring that each token holds a part of the ownership of their institution or projects, just similar to traditional stocks. And then they can list up their tokens on those Decentralized Exchanges for the initial funding, which are known as ICO (Initial Coin Offering), which are very similar to IPO. Using that method it becomes 100 times easier for any company to make their company public without relying on any centralized stock exchanges.
NFT – Another field where Blockchain Technology brings revolution is the Non Fungible asset industry. So, what is a Non Fungible asset? In simple words, Nonfungible assets are those assets that have only one copy in the world and except this original copy, other duplicate copies of those assets have no value.
Feel confused? Well, let me demonstrate it clearly. Suppose you have a $500 note in your pocket which means you have an asset that holds a value of $500.Now suppose you need small notes for your retail expenses, so you give this $500 note to your friend and take five $100 notes from him. After that, you still have an asset that holds a value of $500, because the value of one note of $500 and five $100 are the same, which means all $500 and $100 notes are fungible assets. Similar to golds, silvers even cryptocurrencies are fungible assets.
Because every 1 kg bar of gold or silver holds the same asset value. Each and every bitcoin holds a similar value for any current time. Now the painting of Monalisa by da Vinci is a nonfungible asset. Because only the original piece of the artwork holds value. Neither any digital copy nor any replica holds the same value as the original artwork.
Any type of paintings, curios, music copyright, video copyright are all examples of nonfungible assets. Hope You understand the concept of fungible and non-fungible assets now. Now let’s talk about NFT. In the traditional nonfungible assets market, dealing with the assets is sometimes very harassing. Both artists or art owners and art collectors have to face lots of problems in dealing
Many times they get cheated by buying fake and duplicate artworks and all of their money totally wasted.
So, here are some most popular implementations of Blockchain Technology. But the implementations and usage of blockchains are endless and it is growing rapidly day by day. From Farming to the E-com industry, Medical to Jewelry Industry everyone is implementing smart contracts and blockchain to run their business more smoothly.