What is Blockchain Used For?
Blockchain can serve the purposes of authenticating a unique physical item. These items are paired with a corresponding digital token, or block. This essentially means tokens are used as to bind the physical and digital worlds. These digital tokens are useful for supply chain management, intellectual property, and anti-counterfeiting and fraud detection.
Blockchain is like a full history of a financial institution's transactions, and each block is like an individual bank statement. But because it's a distributed database system, serving as an open electronic ledger, a blockchain can simplify business operations for all parties. For these reasons, blockchain is used not only financial institutions and stock exchanges, but many others in the fields of music, diamonds, insurance, etc.
Blockchain is also being applied to voting systems, weapon or vehicle registrations by state governments, medical records, or even to confirm ownership of antiquities or artwork.
Blockchains are where digital relationships are being formed and secured. In short, this version of smart contracts seeks to use information and documents stored in blockchains to support complex legal agreements.
Another way to think of cryptocurrency is as a digital bearer bond. This simply means establishing a digitally unique identity for keys to control code that can express particular ownership rights (eg it can be owned or can own other things). These tokens mean that ownership of code can come to represent a stock, a physical item or any other asset. Rules on how these instruments can be transacted can be coded by a blockchain protocol.
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