Blockchain technology has been around for over a decade and has often made headlines due to its association with cryptocurrency. However, blockchain is not the same as cryptocurrency. The confusion between the two often leads to misconceptions about the potential of blockchain technology.
Cryptocurrency is a digital currency that uses encryption techniques to regulate the generation of units of currency and verify the transfer of funds. Bitcoin, the first and most well-known cryptocurrency, was created using blockchain technology. Blockchain, on the other hand, is a decentralized digital ledger that records transactions across a network of computers.
Just to make things tricky “blockchain isn’t crypto” but “crypto uses blockchain”. While cryptocurrency is a popular application of blockchain technology, it is not the only one. Unfortunately, many people automatically associate anything blockchain-related (including Web3) with cryptocurrency and depending on their point of view of crypto it can tarnish their base opinion of the technology and reduce their open-mindedness.
I think we have all heard horror stories of people losing money with crypto be it via a scam or just the extreme volatility of the market and people FOMO’ing in to make money. But remember “blockchain isn’t crypto”, in fact, blockchain technology has the potential to revolutionize a wide range of industries beyond finance and crypto.
One such industry is supply chain management. Blockchain technology can be used to track and trace products at every stage of the supply chain, from the manufacturer to the consumer. This helps to increase transparency, reduce fraud, and improve efficiency. By using blockchain technology, businesses can ensure that their products are ethically sourced and manufactured.
Another industry that can benefit from blockchain technology is healthcare. Medical records are often scattered across different providers and can be difficult to access when needed. With blockchain technology, medical records can be stored securely and accessed by authorized parties in real-time. This can help to improve patient outcomes, reduce medical errors, and lower healthcare costs.
Blockchain technology can also be used to improve voting systems. By using blockchain technology, voting records can be stored securely and transparently. This can help to reduce voter fraud and increase trust in the electoral process. In addition to these examples, blockchain technology can also be used for things like digital identifications, smart contracts, media, real estate, energy, insurance, and a heap more.
So it’s important to understand there are plenty of legitimate projects out there building on blockchain that don’t need to use cryptocurrencies, tokens or coins. Blockchain technology is going to help shape the way we interact with data and there is a wide range of industries beyond finance. By using blockchain technology, businesses can improve transparency, reduce costs, and increase efficiency. So it is important to recognise the potential of blockchain technology beyond cryptocurrency to fully appreciate its capabilities.
