Blockchain was originally described in 1991 before it was finally conceptualized in 2008 by Satoshi Nakamoto who implemented blockchain in the first ever cryptocurrency: bitcoin. However, despite blockchain being the underlying technology behind cryptocurrency; people seem to be less interested in it than they are in cryptocurrency, especially Bitcoin or more recently Ethereum. That being the case, it is obvious that blockchain will have many more applications other than just cryptocurrency.
Transaction Security through Blockchain
Of the many characteristics of blockchain, immutability seems to be one of the most lauded by its proponents. In fintech, this makes blockchain a revolutionary tool to secure both data and asset. Although its application as a means of transaction via cryptocurrency is the most mainstream thought; it is also one of the most divisively controversial. As the entire process concerns the users' assets and wealth; without proper legal groundwork and infrastructure, using cryptocurrency in lieu of fiat currency might be unwise.
However, blockchain can be used to improve and ensure security, especially in fintech. As digital payments grow to be more popular and physical transactions fall out of fashion, cyber security becomes increasingly important. Preventing third party interruptions, breaches or hacks that can intercept or create false transactions becomes more significant to the aspect of cyber security.
Currently available security measures are constantly in an arms race with the so-called black hat hackers who harbor malicious intent. Security solutions will have to be constantly updated or it might be insufficient in a matter of days. Perhaps migrating transactional activities into blockchain can render cyber-attacks ineffective.
Blockchain relies on the proof-of-work system that makes changing a single entry almost impossible. The reason is because the attacker will have to create changes to one part of an ever growing chain and the subsequent blocks of the changed part. In other words, blockchain based security works by overpowering cyber-attacks attempts. In a way, the more concrete application of AI is in the support of fintech rather than as an active participant.
Are There Any Other Possibilities?
Blockchain is one of the many emerging technologies that became reality in the last decade. This means there are many unknown variables about the technology itself that determining its ultimate purpose this early seems quite reckless. So far, what experts know about blockchain is almost the same as the internet in the early 1990s.
Many debates are still ongoing on the best utilization or best practices of blockchain. Fintech is one of the more obvious applications of blockchain, but it is not necessarily the only one or even the best application. One thing for certain is that it still has many as-of-yet unexplored purposes and utilization. Only time will tell if it will propagate into mainstream or fizzle out with little fanfare.
Blockchain applications work best as a means to record and secure information. With privacy and security being vital metrics for today's life, more methods to secure information and assets need to be considered. Blockchain is a new solution that can be explored to do what was not previously possible. At the same time, it must be said that blockchain as an underlying solution might solve several existing problems, but it may not be able to solve all existing problems. Blockchain is still an emerging, fledgling technology with advocates and detractors of almost equal size with varying degrees. Further tests and proof of concepts might be necessary to finalize the verdict.
See More Blockchain Applications in InnoVEX 2019
Blockchain was one of the main topics of InnoVEX 2018 and has seen a diverse application in many industries; not only security and fintech. Blockchain will also be an important aspect in InnoVEX 2019 which will also have a dedicated Theme Pavilion on blockchain. On October 31 2018, InnoVEX will hold a back-to-back Saloon networking events for both AI and Blockchain. Register now:
From Blockchain to Everything (October 31 2018 15:00-17:00 GMT+8)
Heading to the Future with AI (October 31 2018 17:30-20:00 GMT+8)