1.1 Introduction to Blockchain Technology

Definition of a Blockchain

• Also known as distributed ledger technology (DLT), the blockchain is a record that anyone can add to, that nobody can change, and that isn't controlled by any one person or entity. The core concept is a public ledger with copies spread out among multiple locations called nodes, which usually refer to individual computers with copies of the ledger.
• In other words, a blockchain is a distributed database shared among a computer network's nodes.

What is Blockchain Technology?

• Best known for their crucial role in cryptocurrency systems for maintaining a secure and decentralized record of transactions
• Not limited to cryptocurrency uses
• Blockchains can be used to make data in any industry immutable—the term used to describe the inability to be altered.
• Very often referred as decentralized:
  • no one person or entity has control of the information kept in the record
  • it’s distributed among the many nodes that make up the network
  • in order to change the record, those changes must first be verified by everyone on the network
  • as long as all copies of the record match, the system knows it can update the information
  • this increases the difficulty of changing anything stored within the blockchain while building trust in the information that’s recorded
• Blockchain’s decentralized nature also means there’s no single point of failure that could take down the entire database
• A company that stores all its clients’ information on a server farm in one building could lose that data if the building were destroyed.
• Because a copy of the blockchain exists on every computer on the network at the same time, it can keep working if one or even multiple nodes go offline.

Key takeaways

Why is Blockchain Important?

BUT

How do different industries use blockchain?

Energy

• Energy companies use blockchain technology to create peer-to-peer energy trading platforms and streamline access to renewable energy. For example, consider these uses:
• Blockchain-based energy companies have created a trading platform for the sale of electricity between individuals. Homeowners with solar panels use this platform to sell their excess solar energy to neighbors. The process is largely automated: smart meters create transactions, and blockchain records them.
• Blockchain is an emerging technology that is being adopted in innovative manner by various industries. We describe some use cases in different industries in the following subsections:
  • energy
  • finance
  • media & entertainment
  • retail
  • agriculture

Energy

• Energy companies use blockchain technology to create peer-to-peer energy trading platforms and streamline access to rene
  • With blockchain-based crowd funding initiatives, users can sponsor and own solar panels in communities that lack energy access. Sponsors might also receive rent for these communities once the solar panels are constructed.

Finance

• Traditional financial systems, like banks and stock exchanges, use blockchain services to manage online payments, accounts, and market trading.
• For example, Singapore Exchange Limited, an investment holding company that provides financial trading services throughout Asia, uses blockchain technology to build a more efficient interbank payment account.
• By adopting blockchain, they solved several challenges, including:
• batch processing and
• manual reconciliation of several thousand financial transactions

Media & Entertainment

• Companies in media and entertainment use blockchain systems to manage copyright data.
• Copyright verification is critical for the fair compensation of artists.
• It takes multiple transactions to record the sale or transfer of copyright content. 
• Sony Music Entertainment Japan uses blockchain services to make digital rights management more efficient. 
• They have successfully used blockchain strategy to improve productivity and reduce costs in copyright processing

Agriculture

• Blockchain technology in agricultural production brings a number of advantages and possibilities for the modernization and improvement of the entire industry.

Retail

• Retail companies use blockchain to track the movement of goods between suppliers and buyers.
• For example, Amazon retail has filed a patent for a distributed ledger technology system that will use blockchain technology to verify that all goods sold on the platform are authentic.
• Amazon sellers can map their global supply chains by allowing participants such as manufacturers, couriers, distributors, end users, and secondary users to add events to the ledger after registering with a certificate authority. 

Agriculture

• This innovation enables transparent and reliable data recording, which brings the following benefits: 
  • Supply Chain Transparency: Blockchain enables recording and tracking of every step in the supply chain, from seed to final products. This increases consumer confidence in the origin and quality of food. 
  • Food traceability: Thanks to blockchain, it is possible to quickly and accurately determine where food comes from. This is key to ensuring food safety and recalling defective products. 
  • Increased management efficiency: Blockchain makes it easier to record information about soil, crops, weather and other agronomic data. This helps farmers better plan and optimize production. 
  • Faster and safer payments: Payments for agricultural products and services can be made through cryptocurrencies on the blockchain, making transactions easier and faster. 
  • Certification and regulation: Green and organic certificates can be stored on the blockchain, allowing for easier verification and compliance. 
  • Microfinance: Small farmers can access microfinance through blockchain, which supports the development of farming communities. 
  • Water and irrigation monitoring: Blockchain can help monitor and optimize water use on farms, which is especially important in arid regions. 
  • Fight against fraud: Blockchain makes it more difficult to forge certificates and labels, which helps eliminate fraud in agriculture. 
  • Improved collaboration: Farmers, producers and traders can easily share data and information, supporting industry collaboration and innovation. 
  • Mitigating the effects of climate change: Blockchain makes it possible to track the carbon footprint and ecological aspects of agricultural production, thereby contributing to more sustainable agriculture.