Misha Solodovnikov is a tech industry entrepreneur. In the following article, Misha Solodovnikov discusses the applications, advantages, and limitations of blockchain technology.
Blockchain technology has simple-to-understand roots — it exists as a shared database with entries that are confirmed by peer-to-peer networks before encryption. Many people find it helpful to envision it as a heavily secure, verified, and communal Google Document wherein every entry depends on a relationship to its predecessors.
Misha Solodovnikov notes that while it catapulted to the forefront of the tech world as cryptocurrencies flooded the market, blockchain technology has hundreds of potential uses beyond the digital finance sphere. Whether it involves insurance, record management, healthcare, compliance, or real estate, it has the power to make waves in many industries.
Despite being considered as a majorly helpful development, it still has its limitations. Through developing an understanding of the applications, advantages, and current challenges with this technology, experts can eventually craft a blockchain-filled future that minimizes issues, boosts productivity, and skyrockets security.
Misha Solodovnikov on the Blockchain Applications
Misha Solodovnikov says that blockchain has a bright future in many industries, and sources state that these are currently the best emerging markets for this sci-fi-esque technology:
- International payments — Tamper-proof logs of information movement are the bread and butter of blockchain, making it fantastic for international money transfers. Automating the process reduces the number of intermediaries required throughout a transaction.
- Insurance — Smart contracts can be realized with blockchain technology, allowing customers and providers to manage claims transparently and securely. Contracts can be recorded and validated on the blockchain to detect and eliminate invalid claims.
- Regulatory compliance and auditing — Since blockchain is incredibly secure, it’s useful for auditing and accounting. It eliminates human error and guarantees the integrity of all records. Plus, nobody can change the account records once they’re secured by blockchain technology.
- Real estate — Data shows that most people move an average of at least 12 times. Blockchain can be used in these processes to expedite home sales by reducing fraud, rapidly verifying finances, and providing complete transparency.
- Healthcare — General information like someone’s gender, age, and basic medical history can be stored on the blockchain. However, doing this is currently somewhat useless, as none of this information can be utilized to identify a patient. That being said, though, once connected medical devices advance and develop, the blockchain will be able pick up data from them, storing it with relevant general information.
- Energy — Energy supply transactions can be supported and executed by blockchain. However, its usage in this sector goes even beyond that. According to PWC this technology can also play a role in billing, metering, and clearing.
- Record management — Blockchain technology can simplify recordkeeping for governments and businesses, ensuring enhanced security and accessibility to those with permission.
The Advantages of Blockchain Tech
This new-age technology boasts a range of benefits, but those that work closely with blockchain agree that the following four are the most important.
Security
Misha Solodovnikov notes that data is vital, but sensitive, and blockchain works wonders to reduce fraudulent activity and forbidden access. Once it is created, nobody can alter the information, and it’s end-to-end encrypted for ultra-high protection.
This tech can also address many privacy problems by anonymizing sensitive data and utilizing advanced permissions to monitor accessibility.
Transparency
Transactions and data from a myriad of organizations are recorded identically wherever needed, allowing network participants to access them when necessary.
Every transaction is immutability recorded with time and date stamps, eradicating the opportunity for fraud.
Traceability
Audit trails are imperative for industries where clients are concerned about human rights or environmental problems caused by certain products. Blockchain technology lets companies share provenance data directly with their customers, satisfying such major concerns.
Plus, Misha Solodovnikov maintains that traceability is essential for exposing supply chain weaknesses, helping businesses save time and money.
Efficiency
Streamlining with blockchain tech allows historically paper-heavy processes and transactions to be completed faster and more efficiently. Documentation is stored on the blockchain, eliminating hard-copy necessities.
Blockchain Technology’s Limitations
While the benefits are irrefutable, blockchain technology still has a few limitations that require rectification before it can reach its full potential for use in most major industries.
Lack of Awareness
While many people are talking about blockchain, most don’t truly understand its full value, nor how it can be implemented under a wide variety of different circumstances.
Scalability
The verification required in blockchain limits the number of transactions it can process. Scaling it will be challenging until the proper advancements come to light.
Key Management
Misha Solodovnikov explains that private keys could potentially be forgotten, thereby locking users out of their network without any means of regaining their accounts. Thus, it presents a riskier work environment for many industries.
Immutability
While immutability is fantastic for maintaining integrity, it doesn’t allow users to edit records. Reversals and redos are essentially impossible — something that must change for a generalized uptake of the technology in the future.
