Blockchain
What
is Blockchain?
Blockchain is a decentralized/distributed database system that acts as an
“open ledger” to store and manage transactions. Each record in the database is
called a block and contains details such as the transaction timestamp as well
as a link to the previous block. This makes it impossible for anyone to alter
information about the records retrospectively.
It’s a public ledger
that records everything in a secure and transparent manner. Unlike banks that
facilitate transactions with traditional currencies, the blockchain allows the
free transfer of cryptocurrency through a decentralized environment. All the
data is then held in an interlinked network of computers, owned and run by none
other than the users themselves.
Benefits of blockchain
·
Decentralized -
no single person or company controls data entry or its integrity;
·
Immutability -
This provides benefits
for audit. As a provider of data, you can prove that your data hasn’t been
altered, and as a recipient of data you can be sure that the data hasn’t been
altered.
·
Transparency
- it provides a decentralized database, or “digital ledger”,
of transactions that everyone on the network can see.
·
Security - with no
central point to be exploited the system is protected against hacking attacks
and fraud. All transactions on a blockchain are cryptographically secured and
provide integrity.
·
Reduced
transactions costs - blockchain
allows peer-to-peer and business-to-business transactions to be completed
without the need for a third party, which is often a bank.
·
High availability- As the system is based on thousands of
nodes in a peer-to-peer network, and the data is replicated and updated on each
node, the system becomes highly available.
Using the example of a
hospital or healthcare provider, poorly managed patient data increases the risk
that a patient will be misdiagnosed, treated incorrectly, or that test results
become lost or corrupted. There’s also a concern that two touchpoints on a
patients’ treatment journey (e.g. a GP and specialist) might have different
datasets for the same person.
Placing healthcare
databases on the blockchain would create a single, unchangeable resource for
practitioners to use when treating a patient.
How
does Blockchain work?
To make understand how
block chain work. I will take help foremost implementation blockchain i.e Bitcoin.
Here is the pictorial
representation of the working of the Blockchain:
Now, breaking down the
steps in the above image, let’s see how a transaction is initiated:
For initiating a
transaction, sender uses two pieces of information: Public key and private key.
James sending 500$ to
Kevin. James uses Kevin’s public key for the transaction. (The public key is
the address in a blockchain transaction).
Now, once a transaction is initiated, it propagates peer
to peer in a distributed network.
So, the transaction has now propagated in the network,
now you might ask: Since there is no central authority to validate the
transaction how is the authenticity and validation of transactions is
maintained in the network?
There are some special nodes in the network who verifies
the transactions and maintains the ledger. We call them Miners.
Miners are special Nodes which hold the copy of the
ledger and verifies the transactions happening in the network.
Using state of the art cryptographic algorithm, miners
validates the transactions across the network
Transaction is broadcasted in the form of a Digital
message.
Just like your signature provides the proof of ownership
on the document, similarly, digital signature provides the proof that the
transaction is genuine. Unlike a handwritten password, digital signature is
unique for every transaction.
Once
the transaction is verified it is stored in a shared ledger across the network.
Big Data Challenges
First,
who controls the infrastructure when there are multiple actors involved?
For
example:
·
If you’re a multinational enterprise, how
do you share data around the planet? If you have multiple copies, how do you
know which one is the most up-to-date? How do you reconcile a different system
administrator role at each regional office?
·
If you’re an industry consortium, how to
share control of the ecosystem infrastructure among the companies in your
consortium? This is especially hard if those companies are competitors!
·
Why can’t there be data just “out there” as
a single shared source of truth that no one on the planet owns or controls, per
se? Rather, data would be a public utility like electricity or the internet
itself.
Second, how well can you trust the data?
For example:
·
If you generate the data yourself, how do
you prove you were the originator? If you get data from others, how do you know
it was truly them?
·
What about crashes and malicious behavior?
Machines crash, glitches happen, bits flip. Zombie IoT toasters might be
inputting garbage. So after all your fancy Spark calculations, is it still just
garbage out?
Finally,
how do you monetize the data?
For example:
·
How do you transfer the rights of the data,
or buy rights from others?
· There’s a long-standing dream of a universal data marketplace; how?
Blockchain Use cases with big data.
The sharing economy
With companies like
Uber and AirBnB flourishing, the sharing economy is already a proven success.
Currently, however, users who want to hail a ride-sharing service have to rely
on an intermediary like Uber. By enabling peer-to-peer payments, the blockchain
opens the door to direct interaction between parties — a truly decentralized
sharing economy results.
An early
example, OpenBazaar uses the blockchain to create a peer-to-peer
eBay. Download the app onto your computing device, and you can transact with
OpenBazzar vendors without paying transaction fees. The “no rules” ethos of the
protocol means that personal reputation will be even more important to business
interactions than it currently is on eBay.
Supply chain Management
In Supply chain, the
most critical thing is to maintain track from raw material distribution to
after scales support. keeping track of Delivery location and product flow.
Today
customer/consumer expectation is to have transparency and trust, he wants to
know all, from where raw material purchased, when & where delivered to
manufacture, what & when product are made and this all depends on trust to
function properly. But so far due to absence of any transparent medium for
trust and because of that there is big distrust between organizations for
sharing and relying on shared data.
But now with use of
block chain technologies with supply chain we can have a solution to re-gain
the trust, permissioned record of ownership, transparency in location and
movement of parts and goods.
Current Challenges in Supply
Chain
·
Disparate
record-keeping and reporting systems can lead to scattered, incomplete and
unreliable manifests, bills of lading, certifications and more.
·
Supply
chain intelligence is knowing more than where goods are at any given moment. To
find the source of flawed parts or component failures, being able to trace the
origin and provenance of previously shipped goods is critical.
·
Even the
best-planned supply chain can be thrown into chaos by natural disasters,
unforeseen shortages, spikes in demand or a litany of smaller issues. With
today’s elongated supply chains, any delay or faulty delivery can impact
production.
Solution:
·
With
blockchain-stored records, all relevant information can be simultaneously and
securely available to sender, receiver, shipper and regulators.
·
With
blockchain records that reflect a product’s geographic flow and how it was
treated, you can examine sources, investigate industry certifications, track
restricted or dangerous components, discover storage condition anomalies and
more.
·
Delays
involving weather, labor disputes, or error are inevitable;
blockchain-optimized processes help to resolve real-world issues. Knowing that
a shipment is incomplete or at risk can instantly trigger remediation actions
like supplier substitutions or price adjustments—before a crisis emerges.
Insurance
Using blockchain can
help with a wide variety of industry challenges, from assessing risk to
mitigating fraud?—?right now, the insurance industry loses $80 billion annually
due to fraud and the blockchain is poised to reduce or eliminate this issue,
among others.
Blockchain could help
the insurance industry in the following ways:
·
Improve
Trust: According to Marr,
there’s a “crisis of trust” in this industry. Blockchain’s transparency could
repair this.
·
Improve
efficiency: Streamlined data
entry, combined with greater control of personal data: “The goal would be to
have the KYC data verified and then it could be securely forwarded to other
companies to use without the need to repeat the data entry or verification
process,” says Marr.
·
Improve
claim processing: Smart contracts
ensure a faster, more streamlined process of managing claims. Once the contract
requirements are met, the coverage is released and the payment is made in one
seamless, automated transaction.
·
Improve
fraud detection: The
public ledger and its ability to verify data is one of blockchain’s greatest
strengths, and could also have the greatest impact on the insurance industry.
All of these benefits
would likely lead to reduced costs, greater legal certainty and ultimately
remove the current vulnerability of a single point of failure.
Cyber
security
·
Securing
edge devices with authentication –
As IT focus shifts to supposedly “smart” edge devices with data and
connectivity, so, too, goes security. Many are subsequently seeking ways of
using blockchain to secure IoT and industrial IoT (IioT) devices, given that
the technology strengthens authentication, improves data attribution and flow, and
aids record management. The Isle of Man government in the UK is testing
blockchain technology to see if it can prevent IoT devices from compromise.
·
Improved
confidentiality and data integrity – Blockchain
Data Integrity service provides fully auditable, compliant and trustworthy data
to app developers working within GE’s Predix PaaS platform.
·
Secure
private messaging –
Startups like Obsidian are using blockchain to secure private information
exchanged in chats, messaging apps and through social media.
·
Boosting
or even replacing Public Key Infrastructure- CertCoin is one of the first
implementations of blockchain-based PKI. The project removes central
authorities altogether and uses the blockchain as a distributed ledger of
domains and their public keys.
·
A Safer
Domain Name System – The
Mirai botnet showed just how easy it is for criminals to compromise critical
internet infrastructure. By bringing down the domain name system (DNS) service
provider for most major websites, the attackers were able to cut off
access to Twitter, Netflix, PayPal, and other services. A blockchain approach
to storing DNS entries could, in theory, improve security by removing the
single, attackable target.
·
Reduced
Distributed Denial of Service Attacks (DDoS) – Blockchain startup Gladius says its
decentralised solutions can protect against DDoS attacks by “allowing you to
connect to protection pools near you to provide better protection and
accelerate content.”
Medical
/ Healthcare
Better data sharing
among healthcare providers, pharmacies, and patients means accurate diagnoses,
improved treatments, and cost-effective care. Blockchain facilitates shared
access across the chain without compromising data security and integrity.
Data Security
The shared blockchain
ledger is public, but because the data is replicated across all the blocks in
the network, it’s more secure than traditional information storage—a model that
keeps all the data in a single location (centralized). Blockchain delivers
access control via a shared public chain and a private chain; so for instance,
only the patient would have access to their medical data using the private
chain piece. If malicious parties wanted to gain access, the hackers would need
to simultaneously breach every participant in the network, not just one.
·
Data can
only be accessed by the patient’s private key, even if the database is hacked,
the data will be unreadable.
Data Privacy
Blockchain also
supports data privacy when data updates are applied and during data transfer.
For example, when a doctor prescribes a new medication for a patient, his or
her records are updated, and the public ledger notes when the transaction or
change was made. An encrypted link to the patient’s record is created for
doctor and patient access only. This approach strengthens the privacy of
electronic health records (EHR) and electronic protected health information
(ePHI) covered by the Health Insurance Portability and Accountability Act of
1996 (HIPAA).
·
A
patient will have full control over accessing their healthcare data. The
patient will control who sees their data and what they see.
· Instantaneous transfer of medical data. Every member in the distributed network of the health care blockchain would have the same data of the patient’s record.
References
https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/blockchainsupplychain/lu-blockchain-internet-things-supply-chain-traceability%20(1).pdf
https://medium.com/@Cryptostory/blockchain-in-healthcare-use-cases-dd683df5065b
https://medium.com/swarmdotmarket/5-important-use-cases-for-blockchain-92aeea35484d
https://medium.com/swarmdotmarket/5-important-use-cases-for-blockchain-92aeea35484d
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