Crypto Academy Week 6 - All About Blockchain Security 2 Post for [@gbenga]

Hello @gbenga, thanks again for another class where you teach us about the nature of blockchains, cryptocurrencies and their security protocols. Personally, I feel like you open my eyes and allow me to understand concepts that were difficult to understand before.

So, let's Go!!!

_{Blockchains, Cryptocurrencies and their security applied to the industry. Source: https://www.information-age.com/transforming-industry-society-blockchain-beyond-coin-123490494/}

Security Benefits of Applying Blockchain Withing any Industry

Any industry, from the smallest to the largest, is essentially part of a large supply chain made up of suppliers and customers, and a Blockchain-based supply chain system would provide much more security and accuracy of information, since once data is entered it cannot be modified.

No data would have to be disclosed to third parties because it would work with consensus protocols. The information is decentralized thanks to technology.

Essentially in a cryptographically protected blockchain the goal is to store documents in those blocks and that the timestamps of the documents cannot be tampered. This can be used to application in different branches of industry such as : data in a supply chain, traceability and tracking of defective products, or the accounting of any company.

The Blockchain proposes a distributed information storage system, where the different servers that make up the network keep a record of the chain by means of a consensus, and updating in a synchronized manner each time a new record is added. In this way, the information remains immutable, since, if you want to make a change to a record, you would have to make the same change at the same time in all the servers that store the record, which is impossible today because of the computational cost involved. Therefore, the more nodes the chain has, the more secure it is.

In short Blockchain is a big ledger where transactions are recorded, and its use brings many advantages and security benefitsto to the industry such as:

-It allows financial transactions with other companies (suppliers and customers) in a secure and reliable way.

-Transactions are more transparent and private, since movements cannot be modified and are integrated into the network.

- The data is impossible to falsify.

- The information is never lost, this is because many nodes are involved in its validation and the information will always be secure. Even if the network went down, the service would never be lost and would continue to function.

- There are no errors. In a central entity there can be errors, but not in Blockchain, this is because the data in a blockchain is checked by a block network, the information that is recorded is agreed by all participants and, therefore, there will be no errors.

_{Blockchain for Every Industry, Source: https://sipmm.edu.sg/impact-blockchain-fast-moving-consumer-goods/}

Impact of cryptocurrency on the industry

The use of cryptocurrencies in the post Covid-19 times in gaming, travel, hosting and entertainment industries will be inevitable for their expansion.

Cryptocurrencies have evolved from a fashion to a multi-billion dollar market; the reasons are not hard to find: instant asset transfers, low transaction fees and decentralized networks thanks to the power of blockchain technology make them resistant to third-party attack, which is irresistible to many sectors.

As already mentioned, there are many benefits of using cryptocurrencies which easily explains why many industries are moving in that direction: decentralized transactions, which leads to low transaction fees, almost instant money transfers, as well as highly secure protocols.

The use of cryptocurrencies takes place within a highly secure network that uses encrypted information to validate a transaction. User data protection and privacy benefit from a high level of security that other financial institutions cannot provide.

So we can analyze the immediate impact of cryptocurrencies on some industries and sectors that I have had the opportunity to learn about in recent weeks:

-Entertainment: The world is entering an era in which people will consume more entertainment online. As direct interactions between people decrease, so will the need to exchange real and physical currency. The rise of online payments will require faster transfer times, lower transaction fees and a higher level of security for both service providers and users.

-Lodging: Every sector of the hospitality industry would benefit from the adoption of cryptocurrency. From hotels to restaurants, bars and even theme parks can reduce costs and improve their services. Additional payment methods could be presented to their customers.

By paying with virtual money, transactions would be done quickly and involve lower costs.

-Travel industry: Booking flights, tours and cruises would soon be available through cryptocurrency payments. Users could benefit from cheaper deals and faster bookings.

In addition, airlines and other transportation sectors could implement a tokenized reward system for loyal or recurring customers. They would pay their most reliable customers with cryptos that they can then use for discounts and other promotions.

Health System: One of the many things the pandemic showed us is how important it is to operate large-scale transactions in the virtual environment rather than through traditional protocols.

In fact some medical experts felt that physical money in the form of bills and coins has been partly responsible for the rapid spread of disease. This label of 'disease carrier' that traditional money received can never be applied to fully digital assets such as cryptocurrencies.

-The education system: Education is another sector looking to make a rapid transition from traditional public meeting to online learning and participation. Schools, colleges and other learning institutions should soon provide online platforms for teachers and students.

These platforms could very well introduce payments, credits and salaries in the form of cryptocurrencies. Students can benefit from smaller fees on their loans, and can even pay them back through the tokens they earn in exchange for getting high grades.

CONCLUSION

The implementation of this blockchain technology entails costs, but in the long run it eventually reduces them thanks to the automation of processes, payments and records.

On a marketing level, any company that implements this technology and provides its customers with full traceability and shows real Blockchain-verified data from the supply chain will gain the trust of consumers.

And finally, thanks to this technology we avoid the vast majority of frauds that exist today.