Blockchain Basics

Virtual currencies have proved to be high-paying investments for some people, and with more of them being developed all the time, they are now much more secure and have a variety of applications. However, blockchain technology, on which cryptocurrencies are built is an area which is evolving even faster than virtual currencies, and the implications are far-reaching in nearly every industry imaginable.

One such project is the effort to create a registry which will support the rights of workers. Coca-Cola, the U.S. State Department, Emercoin and Bitfury Group are seeking to build a registry for sugar supply chain workers in foreign countries. This would be a means of ensuring that employers are honoring their contracts with the registry covering multiple areas of workers’ rights including forced labor, child labor, and land rights from data gathered via 28 studies. An essential aspect of this project is the smart contract, which as part of the blockchain, is both transparent and secure. So unlike word-of-mouth and paper contracts which are often disputed or altered, agreements made via blockchain cannot be changed after it’s been signed. This would compel employers to honor the contracts they make with workers, and overall have an enormous impact on the food and beverage industry, which is one of the largest users of forced labor.

A second project that will utilize blockchain is one from Microsoft which seeks to create digital IDS to help anyone who might have trouble verifying their identity. The announcement was made in February, and the company stated that they intend to use blockchain to develop decentralized IDs within their Authenticator app, which is currently being used by millions of people. Authenticators are tokens or code that serve as another layer of security for returning devices and users.

Decentralized IDs are critical to this project because over 1 billion people around the world can’t prove their identity. This prevents them from accessing such basic services as banking or healthcare or even travel and start businesses. By giving people a method of storing ID information on the blockchain as well as access with a digital key, everyone can manage their own digital identity and provide immutable proof when asked to verify they are who they say they are.

IBM has been working on a blockchain software platform which is constructed on open-source Hyperledger software from the Linux Foundation. To date, the company has worked on over 400 blockchain projects in industries such as the supply chain, media, healthcare, financial services and others.

An additional blockchain-based project is a data-sharing marketplace from IOTA which will allow people to buy and sell unused data. Not only that, the Data Marketplace will allow the Internet of Things (IoT) to be a means of trading electricity, storage, analytics and sensor data. This could, in time, be a way of keeping the IoT working correctly.

These are only a few of the blockchain projects in development which are poised to change the way the world conducts all sorts of transactions, contracts, and more importantly, how people think of blockchain technology.