3 minute read
behind cryptocurrency
SAI HONIG
BLOCKCHAIN – THE TECHNOLOGY BEHIND CRYPTOCURRENCY
by Sai Honig, Engagement Security Consultant at Amazon Web Services
Blockchain is the technology behind cryptocurrencies. Because of wild swings in the values of cryptocurrencies, blockchain has had a great deal of bad press. However, blockchain is a technology that can be used for many other business and personal processes.
Let us try and understand blockchain by looking at a very ancient technology, that of step pyramids. A step pyramid, or stepped pyramid, is an architectural structure that uses flat platforms, or steps, receding from the ground up to achieve a shape similar to that of a geometric pyramid. Step pyramids were built by several cultures in the past and in various parts of the world.
These structures are built with stones. Each stone is precisely cut and placed next to others. The connections between each stone to those next to it give these pyramids great strength, and many remain largely intact. However, if even one stone is incorrectly placed, the pyramid loses its integrity.
A blockchain also provides integrity through the connections between one block of data and another. If the data in a block is modified or deleted, the connections are broken. It is these connections that provide irrefutability. When something is irrefutable, it is impossible to dispute. This irrefutability creates the integrity of blockchain technology.
We can identify many applications where irrefutability is useful and, in some cases, essential.
In insurance, blockchain technology can bring cost savings, transparency and fraud mitigation. It can also enable faster payouts because data can be shared between parties in a trusted and traceable manner.
In Canada, personal identification using blockchain was implemented in 2019. Users verify their identity online, in person or on the phone using information held in banks, health records and government services which they have consented to share.
A blockchain network in the healthcare system could be used to preserve and exchange patient data between hospitals, diagnostic laboratories, pharmacy firms and physicians. This could be done through electronic healthcare record systems interoperability and healthcare data exchange. Such an exchange can be created using blockchain technology.
We have lived with the benefits of global supply chains for several decades. During the current pandemic we saw disruptions of these supply chains. Blockchain technologies helped with tracking shipments. From container shipping to commodity sourcing, blockchain business applications provide certification and ensure correct payments. These technologies can also enable quick responses to quality issues arising in consumer packaged goods, such as identifying batches to be quarantined because of contamination.
The next time you drink coffee or tea, consider where it may have come from and the journey it may have taken to get to your favourite retailer. Blockchain technology has provided coffee, tea and other food commodities with complete end-to-end traceability.
In addition to food, blockchain business applications have been used to track and trace jewellery, automobiles (production and car sharing), and art. All these industries need to track and trace the locations of goods, and payments.
Perhaps the most common application of blockchain is in healthcare. As we have seen during the current pandemic, access to reliable healthcare records and treatments is necessary to save lives. As stated in ScienceDirect,
“An efficient supply chain is fundamental to a fully functional healthcare system. Thus, the health supply system must be designed to quickly and reliably deliver crucial health commodities such as medicines, vaccines, and PPE during infectious disease outbreaks. “The COVID-19 outbreak has further exacerbated supply chain vulnerabilities across different industries as a result of travel bans and factory shutdowns. This added newer challenges to PPE supply chains, as many countries rely on exporting PPE rather than stockpiling to optimise the use of resources. Moreover, there has been a rise in counterfeit PPE amid the COVID-19 outbreak.”
Blockchain can also be used in the treatment of diseases such as cancer and in organ transplants.
So, beyond cryptocurrencies and NFTs, blockchain technology has a number of use cases. This technology might be around for as long as the pyramids.
