What is Blockchain: Examples & uses you’ve not heard of

Blockchain is more than just Crypto.

What is blockchain technology

Blockchain technology is a distributed, immutable ledger that records transactions across many computers. Essentially, it's a digital record that's shared and synchronised. 

Today, governments and organisations worldwide use blockchain for many applications, from supply chain management to digital identity verification. Locally, as part of Singapore's Smart Nation initiative, blockchain is used to enhance the digitalisation of public services while ensuring transparency and security.

How blockchain works

Blockchain operates through a computer network that validates and records transactions in "blocks." These blocks are then cryptographically linked together, forming a "chain." Each block contains a timestamp and a link to the previous block, creating an immutable record.

When a transaction occurs, it's broadcast to the network, verified by multiple computers, and added to a new block. This block is then added to the chain, making it permanent and transparent. This structure ensures that no single entity controls the data, and any attempt to alter it would be easily detectable.

What it is, in simple terms, is a shared dairy kept among a group of friends. Every time someone writes an entry, it's copied and distributed to everyone else. Each entry is numbered and linked to the previous one, so no one can erase or change past entries without everyone noticing.

Key takeaways

• Distributed and immutable ledger.

• Transactions are recorded in linked "blocks."

• Verified by multiple computers for accuracy.

• Transparent and secure, with no central control.

• Timestamps and links create an unalterable history.

Benefits of blockchain

Now that you understand what blockchain is and how it works, you might wonder why it's so widely used. Blockchain offers numerous benefits, making it applicable across various sectors.

For example, Singapore has embraced blockchain technology, positioning itself as a hub for innovation and fintech in Southeast Asia. Government initiatives like the Monetary Authority of Singapore’s (MAS) Fintech Regulatory Sandbox and other blockchain-friendly policies support this growth. The use cases and adoption of blockchain are not only increasing within Singapore but also gaining significant traction on a global scale, transforming industries and government services worldwide.

More than just crypto

For many, blockchain is synonymous with cryptocurrency because you always hear about it in the same breath. Blockchain is basically what makes crypto tick.

Whether you think cryptocurrency is the future of money or the biggest bubble since the tulip mania, we can all agree that news about crypto is seemingly inescapable. The Terra/Luna crash, warnings about the riskiness of crypto trading, and even countries adopting Bitcoin as legal tender — these are just some examples of how crypto is everywhere and how blockchain is shaping our everyday lives.

However, if you look beyond cryptocurrency's headline-grabbing element, you’ll find that blockchain has a much broader range of potential applications. Today, blockchain is used in various industries, offering secure, decentralised solutions for a wide range of applications. 

Coordinating aid for millions

When a crisis hits, assistance — food, shelter and other necessities — usually flows in from different organisations whose efforts overlap. However, inefficient aid distribution during humanitarian crises is a serious issue. That’s because multiple organisations often assist the same people with food, health, shelter, and protection, using differing systems and processes.

In these situations, blockchain offers a unique opportunity to coordinate these efforts, improving efficiency and transparency.

One great example is Building Blocks, a blockchain network that enables collaboration and real-time information sharing in an environment where all members have equal say and responsibilities. Organisations can coordinate humanitarian action and improve efficiency and impact. 

This enables people to receive different types of assistance from multiple humanitarian organisations in one “go”, reducing the complexity of accessing humanitarian support. At the same time, no sensitive information, such as names or dates of birth, is stored to ensure the privacy and security of the people served.

Over US$325 million worth of aid has been distributed using this network, benefitting more than a million people a month. This helps build pathways to peace, stability, and prosperity for those recovering from conflict, disasters, and the impact of climate change.

Tracking vehicle emissions across Europe

With the growing effects of climate change, reducing the environmental impact of motor transport has become all the more pressing. A current stumbling block is the inability to gauge vehicle carbon emissions accurately because a standardised measure cannot be implemented across borders and jurisdictions.

To solve this issue, the European Commission partnered with MOBI, a technology provider for internet-connected vehicles, to test a blockchain solution for the European Union’s 280 million vehicles across 27 states.

The pilot found that sharing vehicle information, such as fuel consumption or emissions, to a blockchain system is feasible. Such data will empower officials and other stakeholders to come up with policies and incentives to reduce the carbon footprint of vehicles.

Verifying registered business information in Singapore

All business dealings come with due diligence that has to be done on potential partners. As such, a trusted repository of information on companies is needed. However, over 75,000 Business Profiles and Business certificates are issued by ACRA each month, creating a need for accurate, up-to-date, and fraud-proof business records. And blockchain technology is ideal for tackling this challenge.

The Accounting and Corporate Regulatory Authority (ACRA) TrustBar platform enables the public, including would-be investors, to verify information like a company’s name, directors, and office address. You can check business profiles, registration certificates, and incorporation certificates.

This information is kept on the blockchain, allowing it to be checked in real time and making tampering or inaccuracies very unlikely.

Validation of COVID vaccination

As the world began opening up post-pandemic, travelling required quite a few medical documents, such as COVID vaccination status, swab results, and other certificates.

HealthCerts — developed by GovTech in collaboration with the Ministry of Health — uses blockchain technology to provide verifiable and tamper-proof digital health documents.

Travellers could upload their digital documents and, upon successful authentication and endorsement, receive a digital certificate containing a QR code. These digital certs were recognised by overseas immigration checkpoints. This streamlined travel and enhanced security, making the resumption of mass travel much smoother.

Earning rewards by setting up data hotspots

Our final example touches on crypto, but not in the world of speculation on the financial markets that we are familiar with. Instead, it’s about creating public, long-range wireless coverage for Internet of Things (IoT) devices.

These devices are interconnected physical objects embedded with sensors, software, and other technologies for connecting and exchanging data over the Internet. Some IoT devices you might be familiar with are wearable fitness trackers, smart lighting systems, and smart pet collars.

This is being done through a project called the Helium Network. Helium is a wireless data network that encourages the public to set up so-called “Helium hotspots” that share their internet connectivity. When you do this, Helium rewards you with its own cryptocurrency. The more people connect to and use your hotspot, the more crypto you get. 

The company is striving to spread internet connectivity and enable more devices to be connected as the Internet of Things becomes increasingly common.  Today, the Helium ecosystem and its hundreds of thousands of Hotspots deployed by a global community provide access to the largest decentralised wireless network in the world. This enables wider access to IoT connectivity, and all these functions are enabled by blockchain technology.

Blockchain is just getting started

Blockchain technology’s versatility and power are evident in its diverse use cases, locally and globally. Its importance lies in its ability to enhance security, transparency, and efficiency. 

Whatever the use case for blockchain right now, one thing is for certain — things are just getting off the ground, and there will likely be future uses that no one has thought of today.

After all, when regular folks first started connecting to the Internet, it was hard to imagine things like social media and online gaming. Yet here we are today. So, it’s definitely wise to stay updated on how blockchain technology evolves and impacts our lives.