Most Curious About Blockchain

Blockchain technology, which has been widely heard by the cryptocurrency sector, has actually been used by the world's giant companies for some time and is rapidly becoming widespread. Kriptrade Research Director Bahadır İldokuz explained Blockchain solutions, which provide very important advantages and positive changes not only for companies but also for consumers, in 5 questions.

1-What does Blockchain technology do?

Nowadays, when the importance of information and data security has increased significantly, costs and risks such as storing and changing data are eliminated with blockchain. Fast and secure access to data, the inability to change the data and the fact that a new record has to be added to the system for correction facilitates the tracking of all transaction details. Instead of identity information, transactions can be made with blockchain-specific identification numbers, which are important for data security. Since it is a decentralised system, all costs required for business such as data storage and the possibility of hacking are reduced. To briefly summarise the benefits: Data security and transparency, data tracking and data cannot be changed, fast access to data and efficiency, automation, less intermediaries.

2-How can blockchain change our lives in the future?

If the official institutions are included in this process, it will pave the way for the passport, identity card and similar document transactions that require physical identity declaration and are carried out in official institutions to be done completely remotely due to the unchangeability of the system. In sectors such as food, it will be possible to monitor the entire supply chain by tracking the process from the source to the end user and all the transactions made and applied, revealing costs and profit margins, and accordingly processing big data more efficiently and effectively. This will pave the way for both cost management for companies and immediate detection of possible exorbitant prices and faulty aspects in the supply chain for consumers and the public authority, and making appropriate arrangements accordingly. As a result, whether in financial institutions such as banks or on the real sector side, blockchain, which provides transparent and unchangeable data, will create many opportunities such as inflation, effective agricultural production, cost accounting of companies or consumer's ability to see real prices. In addition, possible fraud and fraudulent transactions will be prevented. For example, when you buy a car, there are many inquiries such as whether there is a pert record or not, but it is a question mark to what extent these inquiries are healthy. With IOT, i.e. the Internet of Things, you will be able to see all transactions that have been made before in all asset classes and act accordingly. In summary, it will pave the way for eliminating all the problems caused by the information asymmetry we face today.

3-Blockchain technology is only used for cryptocurrencies?

As we mentioned, this issue is much broader. From the internet of things to data verification and data security, many issues that are subject to fraud, such as data verification and data security, can be eliminated with blockchain. For governments, more effective structural policies based on accurate data can be realised, while wasting time and resources can be prevented. Companies can manage production, sales, service, logistics and all similar activities faster and more effectively, while individuals can fulfil the correct pricing behaviour in all asset classes in the market. Simply put, you will be able to see where all the ingredients in the food you eat in a restaurant are grown, when they were purchased and their cost. Or it will be possible to transparently access many data such as the previous owners of the house you bought, the renovations made in the house, previous sales prices, and the materials used.

In the financial sector, due to the lack of mutual trust, the functioning of banks and other financial institutions, which are in the position of intermediaries, will change. These institutions will now be service provider platforms with blockchain. Issues such as funding and project financing will become possible through P2P. Areas such as patient and drug tracking in the health sector, automatic invoicing at electric vehicle stations in the energy sector can also be listed as channels suitable for blockchain use.

4-Which companies in the world use blockchain infrastructure?

It would be more explanatory to give examples of some global companies using this increasingly widespread technology.

Boeing has developed a privileged air traffic control system using blockchain technology for drone tracking.

Cargill switched to blockchain technology to track turkeys prepared before Thanksgiving.

Carrefour tracks dozens of product lines from eggs to salmon and cheese. Linking the increasing sales to this, the company plans to increase the number of products to 100.

The Chinese construction bank has established a blockchain-based platform where it can identify borrowers and institutions in the risky group and offer more attractive rates to customers with less risky customers.

CreditSuisse has established a settlement system that allows blockchain-based customers to buy and sell securities directly with each other without an intermediary institution through P2P. While the settlement period is 2 days when there is an intermediary, instant settlement can be realised in this way. Examples can be further extended and there is no limit to the application area.