The pandemic has caused unprecedented uncertainty in every industry, including security challenges and other gaps. Blockchain technology has become a top-of-mind solution for companies that needed to reinstitute trust, ensure traceability, and boost security.
What is blockchain technology?
Distributed ledger, or blockchain, is a set of digital records over which multiple users have joint control. Each block in the ledger represents the data that it stores. The blocks are placed in a logical sequence and linked together. Thus, each record contains unique information and data about the previous record making it difficult to alter the data.
From the beginning, the technology was aimed at enhancing financial services. However, lately, it has been transforming many sectors from agriculture to retail and more. Furthermore, the interest in technology is only growing because blockchain development services can help industries cope with secure information transfer, tracing products and other challenges.
Practical use cases of blockchain technology
Even though some organisations still question the value of the underlying technology, many others already leverage its benefits. Managing pharmaceutical information, tracking vaccines, and tracing food origin are only a few examples of blockchain applications. Let’s take a closer look at the use case of the technology across the industries.
Mitigating supply chain issues
With the vaccine rollout, a supply chain is receiving a lot of attention. Each vaccine has different storage requirements, namely constant storage at an exact temperature. Thus, it is vital to ensure that a vaccine is accurately monitored and effectively and safely delivered from the provider to the end-users. Blockchain-powered end-to-end tracking and monitoring guarantee that a vaccine is appropriately stored. A customer can look into data entries, locations and timestamps to ensure that storage conditions meet the requirements.
Moreover, data records within distributed ledger are challenging to tamper with; thus, fraudsters cannot replace the original product with counterfeit medicine end-users can be sure of the authenticity of a product.
Enhanced supply chain visibility driven by blockchain technology can be beneficial not only for healthcare industry players. For instance, companies can use it to track the production of food to its source or make sure the details in the manufacturing process are uncounterfeit.
Securing digital health passport
The distributed ledger can also be used to keep health passports, a digital document where the information about the history of a vaccine shot or COVID-19 test results are stored. In such a case, there will be no need for a central database. Each user will own their data and share it if needed. Applying blockchain to digital health passports will guarantee the authenticity of documents and facilitate travelling, visiting sports events and numerous other activities.
Tackling climate change
Blockchain can be used to monitor whether companies live up to their promises of using renewable energy and environmentally friendly materials, conscious consumption of the resources, etc. The untampered history of records can be used to verify the source of the product, how it was made and its environmental impact. Green smart contracts enabled by blockchain can reduce the carbon footprints of farmers by introducing more sustainable land-use practices and ensuring agriculturalists follow them.
Eliminating manual reconciliations and third-party intermediaries, enhanced traceability are among many other advantages the adoption of distributed ledger can bring. Of course, blockchain technology is no cure-all; however, it has the potential to help companies from various industries overcome challenges in their everyday operations.