Top 10 Problems that Blockchain Solves 2023

Blockchain can help solve many real-world problems and provide a better economic model for everyone. Let's look at these issues and see what blockchain can do to help. Most people associate blockchain with Bitcoin and Cryptocurrency. Its application extends far beyond digital assets. Blockchain is, in fact, one of the most revolutionary and disruptive technologies of our time. Reports indicate that global blockchain spending will rise and surpass $15.9 billion in 2023. Moreover, nearly every industrial sector is eager to adopt blockchain technology and reap the benefits. This includes the fintech companies, the media industries, and health care. What makes blockchain such a powerful force? We have compiled a list that addresses real-world problems and shows how blockchain can provide effective and efficient solutions. We will also learn the core problem that blockchain is trying to solve. Blockchain is nothing but a collection of blocks. Blocks are digital data linked to each other by a cryptographic hash. Because of this unusual structure, it is extremely secure and resistant to data manipulation. This is the main reason why most of its applications can be found. Blockchain technology is still in its infancy. However, blockchain technology has already penetrated many sectors on a global scale. It could change the way digital data is processed in a matter of hours. The top Blockchain development companies believe that this technology can address some of the most difficult problems in the world. According to Blockchain development companies, this technology can address some of the most difficult challenges in the world. We'll be discussing the top 10 real-world problems that Blockchain can solve.

What Is Blockchain Technology?

Blockchain is primarily a blockchain that stores data using a specific protocol. These blockchains can be linked together using cryptographic hashes. Blockchain is considered distributed and decentralized technology because it does not require a central authority. Blockchain was created in 2008 as the public distributed ledger that records bitcoin transactions. Blockchain was created to eliminate the need for intermediaries in transactions. This unique ability allowed blockchain to expand its reach into other industries and multiple use cases, transforming traditional operations and working methods. Blockchain allows storing and recording transactions and digital assets in an immutable, decentralized network. It stores all information in its network using pre-defined security protocols. This prevents data manipulation and other threats. Blockchain technology can be used in many different ways. Businesses are now looking for the best cryptocurrency exchange development companies to create business-oriented blockchain solutions. As Blockchain Technology expands into other industries, the number of Blockchain Technology users will probably grow quickly. The latest statistics show that the world will invest $19 billion in Blockchain solutions by 2024.

Top 10 Problems Blockchain Solves

Blockchain technology is still relatively new. It is still relatively new, but it has been adopted by many industries worldwide. It could change how any digital data will be processed shortly. According to the leading blockchain development companies, this technology could solve many of the most complex problems that the world is currently facing. Here's a list of the top ten problems that blockchain can solve.

Data Storage

Gone are the days when knowledge was only available to the chosen few. It is now much more difficult to get the information you need than to disconnect from the constant information stream. The amount of information required to keep track of the ever-growing number of people using Facebook and the advancements in artificial intelligence (and machine learning) has increased the number of users. Big Data is a challenge to modern data centres’ capacity. The data storage environment becomes more difficult as the technologies described above continue to develop. IDC projects that 163 zettabytes will be stored by 2025. Cloud storage services cannot handle such large amounts of information efficiently. Blockchain could solve data storage issues due to its distributed and decentralized nature. It will be necessary to separate the data into smaller pieces to store it on the blockchain. Each part of the data will be encrypted and uploaded onto the blockchain. The data will then be distributed so that it can be accessed even if a particular part of the network is not working. This data handling is a better option than cloud storage.

Data Security

Data security will be greatly improved by storing data in the blockchain. Cloud data is currently stored in centralized storage units, which makes it vulnerable to security breaches. Blockchain could increase the speed and safety of cloud storage. The nod network will store the data stored in the blockchain. In this instance, there will not be any need to rely upon a central entity. A data attack on the blockchain storage system will not result in a potential death. The blockchain will not allow anyone to alter or steal data. The blockchain can store data and protect it from force majeure circumstances (e.g., natural disasters or riots, political escalation). Distributed blockchain data storage networks will store redundant copies among different nodes to ensure that data is never lost or downtime. Blockchain can store, process, and manage data without relying on third parties.

Transactions

Nearly all payments are currently made through a third-party financial institution. Many businesses can benefit from blockchain payments to improve their payment processes. A company can enable a blockchain-based payment processor to eliminate payment delays and time-consuming processes of an older payment system. Many businesses can now have instant, secure transactions with blockchain. Blockchain's structure allows for a real-time audit of all transactions and secures them against any modifications. This can be used to improve compliance-intensive industries' operations. Smart contracts are applications that operate exactly as they were programmed and did not allow fraud or downtime. This allows businesses to set unbreakable rules for financial transactions. Slock, an IoT platform, and Ethereum-based company, use smart contracts software to rent bikes. A smart lock unlocks the bike and allows the user to ride it once both parties have agreed on the terms.

Intermediaries

Without banks, it is impossible to make financial transactions. Banks act as intermediaries to ensure that money is transferred to the right recipient. Banks don't show you the details of transactions, and you cannot wait for the recipient to receive them. Blockchain allows you to trust your finances and use it to secure technology instead of banking. Blockchain makes it possible to eliminate intermediaries in many cases. With a set of digital keys, one can send digital payments from their virtual wallet directly to the recipient's virtual wallet. You will need to know the public address of the recipient's Bitcoin wallet to perform such a transaction. These transactions are faster, more secure, and more reliable than regular bank transfers. Additionally, transaction fees for blockchain transactions are much lower than bank fees. Even in situations where intermediaries may be required, transactions held via blockchain can help individuals and businesses eliminate fraud and protect all transactions.

Supply Chains

Supply and logistics chain management has become extremely complicated. Many products go through hundreds or even thousands of steps during their supply chain journey. It takes a lot of resources and time to process all invoices, payments, and tax documents. Some products may take up to a year or more to arrive. Errors, fraud, or force-major circumstances can cause high losses. For both sides, longer supply chains can result in greater potential losses. Blockchain technology is a promising technology for supply-chain management. It can greatly improve asset tracking, tracking, assigning, and linking. Because blockchain offers transparency and security, it can greatly improve the efficiency of supply chain processes. Blockchain can document every step of the supply chain for every product, ensuring transparency and better protection. Blockchain can transform trade processes and replace old trade processes. It can also increase trade volumes and transform global economies. Blockchain can eliminate illegal and unethical activities from supply chains at a global level.

Intellectual Property

It is difficult for intellectual property owners around the globe to protect their rights in the digital age. Pirates can easily steal, copy and distribute almost any piece of art. However, with the help of blockchain technology, some companies have found a way to solve this problem. Binded, for example, created a website to help artists protect their original images and save them to the Blockchain. An artist will receive a certificate proving that the image is genuine. This certificate does not replace a certificate from the US copyright department. They will still have to follow the formalities if an artist wishes to claim statutory damages in a US lawsuit. Blockchain can protect the intellectual property of all kinds, including inventions, trade secrets, and songs you've written. One can quickly create a digital trail that tracks their innovation process using blockchain. One can quickly get blockchain certificates to prove ownership of the IP assets one owns.

Government Operations

There is no perfect government. It is not flawless, corrupt, or just. Blockchain technology could greatly facilitate the delivery of government and public services. Blockchain technology can address the major issues of identity management, taxes, and elections. The standards for identity management vary from one country to the next. This makes it difficult and inconvenient to identify people. The outdated identity management system can be replaced by combining biometric technology with blockchain. It will make it easier to travel, participate in elections, and receive government benefits. Blockchain can improve the efficiency of tax systems by automatically checking tax records to detect fraud. The US government currently loses millions annually to tax fraud. The government will ensure that no tax record is hacked or altered by implementing blockchain solutions.

Charity

The current social funding model and charity model are not popular. Millions of dollars are wasted on ineffective social funding projects. There is less transparency, which raises suspicions about the reliability and credibility of charities. Some social projects are not scaleable because they lack visibility. Blockchain could be the solution the sector needs. Blockchain technology can significantly transform the charity sector. It can increase trust through transparency and the public's trust in charities. It can also reduce transaction costs and other expenses on both sides of the deal. Blockchain technology can also reduce administrative costs by automating the approval of transactions and checking for errors. Alice, for example, is a platform that uses blockchain technology to bring transparency to social financing. This project encourages social organizations to operate their projects transparently and makes the performance of each project available to the general public. Voting The justice of elections is a major concern for many countries. Many cases involve voting machine hacks, miscounts, and forced voting. A blockchain-based voting system can eliminate all these problems. A vote saved to the blockchain can be tracked and re-tried in real-time. It cannot be altered. This technology eliminates the possibility that any election could be tampered with. This technology allows for the most effective determination of election winners. Another issue in elections is voter anonymity. The transparent crypto algorithms will protect the voter's anonymity by enabling blockchain-based voting solutions. Complex mathematical algorithms will encode every vote and save it on the blockchain without allowing anyone to alter it or hack it. Only citizens legally permitted to vote can use blockchain to fulfill a civic duty. Colombia already took the first steps in launching Plebiscito Digital, a blockchain-powered voting platform. The service previously collaborated with civil society organizations to allow Colombians living abroad to vote using the blockchain-powered service. Crowdfunding Traditional crowdfunding leaves much to be desired. Although it is improving, many issues cannot be solved. Start-ups all around the globe have been able to get visibility through platforms such as Indiegogo and Crowdfunder. Over three-quarters of all projects fail to reach their goals. Moreover, less than 2% of funds raised go to countries in the developing world. This means that crowdfunding needs to change shortly. Blockchain technology can make funding transparent and secure from any global location. This technology can maximize the chances of a project's success. Blockchain-powered crowdfunding is more democratic because it is anonymous, secure, and without borders. Blockchain can help create a global crowdfunding platform that anyone can access easily from anywhere in the world. It will allow for all-inclusive crowdfunding.

Blockchain Trends You Shouldn’t Miss in 2023

Businesses and end-users can use blockchain to decentralize services and protect data privacy and security. The increasing demand for cryptocurrency and Web3 integration also accelerates blockchain development. This report overviews the top nine blockchain innovations and trends for 2023. These include tokenization, smart contracts, enterprise blockchain, and blockchain security. Learn more about how they can impact your business.

Cryptocurrencies

Blockchain stores transactional information in peer–to–peer networks through cryptocurrencies. They eliminate banks and central authorities to speed up funds transfers and reduce transaction fees. To reduce transaction times and carbon footprint, the growing interest in cryptocurrency drives innovation toward high-performance and sustainable cryptos. Blockchain also provides crypto transactions with inherent security, making financial transactions safer. However, most exchanges store wallet data on centralized servers, which makes them vulnerable to hackers. Web3 technology will enable crypto exchanges to use cryptocurrencies to replace fiat currencies.

Bottlepay Offers a Crypto Payment Gateway

The UK-based start-up Bottlepay offers a crypto payment gateway. It allows users to convert EUR or GBP to BTC anytime and speeds up their verification. The Lightning Network, a payment protocol built on Bitcoin, is used by the start-up. This gateway allows users to transact money through social media platforms to content creators and to leverage cross-border transactions with no fees.

Asset Tokenization

Tokenization uses blockchain technology to fractionalize physical or digital assets into digital tokens. This is the same principle as cryptocurrencies. Blockchain-powered tokenization, however, allows retail users and businesses to convert assets such as art and real estate portfolios into digital tokens. This allows owners to easily sell tokens through secondary markets, increasing liquidity for otherwise ineligible assets. This increases investor access to previously unobtainable assets and opens opportunities for portfolio diversification. Smart contracts automate token transactions, increase transparency and provide a single source of truth. Tokenization allows all parties to verify their holdings and ensure fair practices.

Buzzmint simplifies Digital Asset Tokenization

Buzzmint, a UK-based start-up that develops a digital asset tokenization platform, is founded. It allows creators and brands to quickly create non-fungible tokens of their digital assets and deploy them. They can also leverage their existing digital infrastructure to create and deploy non-fungible tokens (NFTs) of their digital assets. This eliminates the need to forward customers to other platforms to sell their tokens.

Smart Contracts

Smart contracts are essential for any blockchain ecosystem as they replace intermediaries in governing and executing all P2P transactions. Startups offer platforms that make it easy for businesses and blockchain developers to create smart contracts. These platforms are usually very easy to use and allow faster development workflows. Due to increasing cyberattacks on blockchain systems, smart contract auditing solutions are gaining popularity. These platforms enable smart contract developers to automate security analysis. Smart contracts are also more efficient due to advances in cryptography, access management, and contract structure.

Viveel facilitates Smart Contract Creation

Viveel, a Portuguese start-up, creates smart contracts for businesses. The platform uses visual programming and a template-driven workflow to speed up production. Organizations can then deploy smart contracts directly after configuring the configurations and components. After deploying smart contracts, the platform issues audits that allow organizations to verify their status. These smart contracts then become active decentralized apps. This allows for the rapid deployment of smart contracts in blockchain networks and accelerates time-to-market.

Advanced Cryptography

Blockchain networks use cryptography to encrypt communications between nodes. This ensures the immutability, verifiability, and security of transactions. Blockchain developers use both symmetric and unsymmetrical cryptographic algorithms to accomplish this. The symmetric cryptography method uses the same key to communicate with nodes. While the asymmetric technique leverages public and private keys to decrypt and encrypt messages, symmetric ones do not. Multi-signature algorithms, for example, generate digital signatures that multiple parties can use. Zero-knowledge proof (ZKP) is another method to prove knowledge is not shared across the network. These techniques enable blockchain developers to protect security and user privacy while ensuring transaction confidentiality.

Ruby Protocol Creates a Privacy-Centric Web3 Protocol

Canadian start-up Ruby Protocol builds a decentralized privacy-centric Web3 protocol. It uses functional encryption (FE), which allows users to encrypt data on-chain. Only holders of approved keys can decrypt it. This protocol implements a privacy layer that interacts with the multi-chain ecosystem. This allows the private know-your-customer (KYC), NFT-gated and regulatory-compliant asset ownership, and privacy-preserving cloud computing.

dApps

Blockchain networks allow decentralized applications via peer-to-peer nodes, smart contracts, and smart contracts. The Ethereum blockchain, for example, offers tools that can be used to build decentralized applications. dApps remove the interference and control of central authorities, which allows for privacy and flexibility in development. It also allows fair pricing of applications and services among all stakeholders, increasing transparency and monetization possibilities. dApps are also free from downtime because they use decentralized computing. They also ensure a secure development environment with open-source licenses. Finally, decentralized blockchain applications are essential for Web3 integration acceleration.

Cube Simplifies dApp Token Staking

Cube, an Indian start-up, facilitates dApp token staking. App developers can integrate staking access through the start-up's API. Cube encrypts API calls using transport layer security (TLS) and asymmetric cryptography. Cube can achieve automated yield strategies such as auto-compounding or leverage staking. This allows dApp developers to save time and reduce time to market.

Blockchain is a Service

Cloud-based services are affordable and flexible, making them a popular service model for blockchain networks. Blockchain developers can quickly create and host smart contracts and apps, reducing time-to-market. Companies can also save money on hiring developers to develop their networks. They can focus on product optimization and feature enrichment while their network is agile and efficient, thanks to service providers.

Everblock Provides Blockchain Solutions as a Service

Everblock, a Brazilian start-up, provides blockchain solutions such as smart contracts, decentralized storage, and smart contracts as a service to the media, healthcare, and education industries. It allows organizations to use blockchain-driven apps to improve data transparency and security. The start-up allows healthcare organizations to improve patient privacy and data compliance, educational institutions to prevent document fraud, media companies to combat copyright infringements, and medical companies to do the same for education companies.

Private Blockchain

Private blockchains are permissioned, private blockchains that are owned primarily by companies and organizations. Private blockchains are different from public networks. They have centralized authorities who decide access to the networks. Private blockchains have centralized authorities that decide who can access the network. Each node also has a copy of the entire Blockchain. The owner can reverse or delete transactions. This allows companies to control their enterprise data better while retaining transaction verification and validation capabilities. Private blockchains are smaller than public networks and have lower transaction throughput. They also offer easy scaling.

AlleoChain advances Private Blockchain Development

AlleoChain, a Cypriot start-up that supports private blockchain development, is called AlleoChain. With its no-setup, no-code platform, businesses can host private blockchains in secure cloud environments and use SQL to automate data integration. The platform also backs up the data to increase redundancy. This allows companies to scale blockchain applications quickly.

Blockchain Security

Blockchain is primarily used for investment vehicles and financial transactions. Data integrity and privacy must be protected as businesses and users move to blockchain-centric workflows. Startups develop security solutions for blockchain networks to ensure their safety. Advanced analytics and artificial intelligence (AI) are used to monitor smart contracts, nodes, and transactions to spot discrepancies. This quickly identifies malicious users and prevents data or asset theft. Businesses that use blockchain to manage their supply chain, asset trading, or data management need security solutions.

Veridise offers Blockchain Security as a Service

Veridise, a US-based start-up that offers blockchain security as a service, is Veridise. Its tools enable businesses and blockchain developers to automate security analysis for smart contracts, Web3 applications, zero knowledge circuits, and other applications. They can quickly identify and mitigate vulnerabilities before deployment to the blockchain.

Enterprise Blockchain

Due to the lack of data control and visibility, businesses are reluctant to use public blockchains such as Bitcoin and Ethereum. Although some blockchain companies still rely on public blockchains like Ethereum and Bitcoin, there is an increasing demand for private or consortium blockchains. These enterprise blockchain networks give businesses greater control over their data and retain other blockchain features like security and traceability. This allows companies to remain data-compliant and integrate blockchain-based apps. Blockchain also automatically increases enterprise data security and reduces costly data leakage.

AstraKode Simplifies Enterprise Blockchain Development

Italian start-up AstraKode provides Network Composer, a platform for enterprise blockchain development. It allows businesses to create customized, permissioned blockchain networks. It also offers low-code functionality and automated testing to speed up development workflows. This allows companies to host their blockchain networks in the cloud, allowing for greater accessibility and configurations.

The Key Takeaway

Blockchain technology is an advanced technology with many capabilities. It allows you to securely store, disclose and record data in the most secure ways. Due to its many benefits, businesses now widely use blockchain technology to improve their operations and generate high ROI. Blockchain is a complex technology that requires intelligence and expertise to build a successful blockchain-based app. You need the help of a professional blockchain company to create a blockchain-based application that meets your business needs.