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Real-World Blockchain Applications: From Code to Reality

  • November 11, 2024
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The post Real-World Blockchain Applications: From Code to Reality appeared first on Coinpedia Fintech News

Blockchain technology has taken the world by storm, but what if we told you it’s just getting started? Blockchain is disrupting industries in all directions, from secure and private healthcare to building new financial systems and empowering communities with direct voting power. Imagine having the code and knowing how to use it to innovate blockchain beyond these cryptocurrencies. Sounds Amazing right? This article focuses on all those sections and concepts through which you can channel your potential and bring your imagination to the real world.

Are you curious about how blockchain protects sensitive medical data or facilitates peer-to-peer lending in decentralized finance? You’ll find it all here, with code to make it happen. And it’s not just about what blockchain can do—it’s about what you can do with it. 

Get ready developers to explore blockchain beyond the buzzwords!!

What You’ll Learn

  • Blockchain in supply chain management
  • Blockchain in healthcare and medical records
  • Decentralized Finance (DeFi): Opportunities and risks
  • NFTs beyond digital art (IP, gaming, real estate)
  • DAOs in governance 

Blockchain in Supply Chain Management

Blockchain is renowned for its transparency and traceability. Given Supply Chain Management, blockchain is the only viable alternative. Blockchain transforms supply chain management by providing transparency, security, and efficiency across every stage of a product’s journey, from raw material sourcing to consumer delivery. Each transaction is coded into an immutable record. By this mechanism, blockchain addresses several persistent issues in the supply chain, such as trust, fraud, and logistical inefficiencies.

Let’s have a look at how Blockchain works in Supply Chain Management:

  • Tracking and Recording: Each product is tagged with a unique identifier (QR code, RFID) and tracked on the blockchain as it moves through the supply chain.
  • Smart Contracts: Automated contracts execute actions (e.g., payments or inventory restocking) when predefined conditions are met, reducing manual intervention.
  • Real-Time Data Sharing: All participants can access the same real-time, immutable data, validated through the blockchain’s consensus mechanism.
  • Decentralization: Blockchain removes intermediaries, allowing direct validation of transactions between parties, reducing costs, and improving efficiency.
  • Auditability: A complete and transparent transaction history is maintained, enabling traceability and ensuring product authenticity.
  • Security: Cryptographic hashing ensures data integrity, making tampering or altering records impossible.
  • IoT Integration: IoT devices log environmental data (temperature, humidity) directly onto the blockchain for real-time tracking and condition monitoring.

Let’s have a look at how blockchain transforms Supply Chain Management:

  • Enhanced Trust: All stakeholders can view the verified product history
  • Fraud Prevention:  There are immutable records and unique digital IDs that prevent counterfeits.
  • Automation & Cost Savings: Smart contracts streamline payments and approvals, which in turn reduces the cost.
  • Sustainability Tracking: Companies can prove ethical sourcing and environmental impact.
  • Simplified Recalls: Faster, more precise recalls protect consumers and brand integrity.

You will be wondering how you start with coding right? Worry less!

Here’s a Solidity contract that manages item tracking and ownership within a supply chain.

Code: Basic Supply Chain Tracker Smart Contract

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

contract SupplyChain {
    struct Item {
       uint id;
        string name;
        string origin;
        address currentOwner;
        string status;
    }
    mapping(uint => Item) public items;
    address public admin;

    constructor() {
        admin = msg.sender;
    }

    function addItem(uint _id, string memory _name, string memory _origin) public {
        require(msg.sender == admin, “Only admin can add items”);        items[_id] = Item(_id, _name, _origin, msg.sender, “Manufactured”);
    }

    function updateStatus(uint _id, string memory _status) public {        Item storage item = items[_id];
        require(msg.sender == item.currentOwner, “Only current owner can update”);        item.status = _status;
    }
    function transferOwnership(uint _id, address newOwner) public {        Item storage item = items[_id];
        require(msg.sender == item.currentOwner, “Only current owner can transfer”);
        item.currentOwner = newOwner;
    }
}
Developer Notes and Exercises:Extend the contract to add a batch-tracking featureInclude timestamps for each status update.Create frontend to interact with smart contracts for real-time viewing(Tip: Use Javascript and Web3.js)

Blockchain in healthcare and medical records

The healthcare field needs utmost privacy and security when handling patient data. Also, massive data handling and manipulation are involved. Blockchain comes to the rescue here! It helps create secure, immutable records, reduce data breaches, and improve interoperability between healthcare providers.

What is the actual Blockchain functionality in Healthcare?

  • Data Storage: Patient medical records are securely stored on the blockchain, with each entry being encrypted and linked to previous data for an immutable history.
  • Access Control: Smart contracts manage access to medical records, ensuring that only authorized healthcare providers can view or modify patient data based on predefined permissions.
  • Interoperability: Blockchain allows seamless sharing of patient data across different healthcare providers while ensuring data consistency and integrity, enabling better collaboration.
  • Decentralization: Eliminates the need for centralized health databases, reducing the risk of data breaches and ensuring that patients have control over their own medical records.
  • Audit Trail: An immutable audit trail of all actions taken on medical records ensures full traceability and accountability, helping prevent fraud or errors.
  • Data Integrity: Blockchain’s cryptographic hashing ensures that medical records cannot be tampered with, providing secure and trustworthy data for both patients and healthcare professionals.
  • Smart Contract Automation: Automates processes like insurance claims, billing, and appointment scheduling, reducing administrative workload and human error.

Code: Generating and storing a hash of medical records in Python

import hashlib
def generate_hash(record):    record_hash = hashlib.sha256(record.encode()).hexdigest()    # Store record_hash on blockchain (pseudo code)    return record_hash
# Example usagerecord = “Patient: John Doe, Blood Type: O+, Diagnosis: Hypertension”print(generate_hash(record))
Exercise:Integrate the above hashing into your dAppAdd encryption layers before hashing

Decentralized Finance (DeFi): Opportunities and risks

DeFi –Decentralized Finance is reshaping the financial domain by offering all the financial services similar to the traditional ones but without the need for centralized intermediaries like banks.DeFi enables peer-to-peer financial interactions that are more transparent, accessible, and potentially more lucrative than traditional finance. Yet, while DeFi offers numerous benefits, it also introduces risks that both developers and users must carefully consider.

Let’s explore DeFi’s opportunities and risks in greater depth:

Opportunities  Risks
Financial Inclusion:  DeFi enables access to financial services for unbanked and underbanked populations, offering broader financial inclusion. Smart Contract Vulnerabilities: Bugs or flaws in smart contract code can lead to hacks or loss of funds, impacting user security.
Transparency:  The open ledger provides transaction visibility, increasing trust and accountability in financial activities. Lack of Regulation: DeFi’s decentralized nature can enable fraud and money laundering, with limited legal recourse for users.
High Yield Potential: DeFi platforms often provide higher interest rates than traditional financial institutions, making them attractive to investors. Market Volatility: Cryptocurrency price fluctuations can impact loan collateral and yield, leading to potential losses.
Permission and Open Access: Anyone with an internet connection can access DeFi services, offering flexibility and inclusivity without traditional banking barriers. Liquidity Risks: Liquidity shortages during market stress can prevent users from accessing funds quickly, posing financial challenges.
Automation:  Self-executing contracts reduce reliance on intermediaries, lowering costs and increasing transaction speed and reliability. Oracles and External Data: Relying on external data sources (e.g., asset prices) introduces risks if these sources are compromised or manipulated.
Composability:  DeFi protocols are often modular and compatible, allowing easy integration with other blockchain-based services to enhance functionality. Complexity and User Errors: DeFi platforms can be complex for average users, increasing the risk of accidental fund loss due to user errors.
Programmable and Interoperable Smart contracts can automate processes and support diverse applications, creating new financial products and services. Interoperability Challenges: Differences in blockchain standards can hinder asset and data transfer across platforms, limiting accessibility.

Code: A Simplified DeFi Lending Protocol

Here’s a simple smart contract written in Solidity that allows users to deposit and withdraw funds. This example demonstrates the basics of how DeFi lending works, where users can deposit funds and earn interest over time.

// SPDX-License-Identifier: MITpragma solidity ^0.8.0;
contract SimpleLending {    mapping(address => uint) public balances;    mapping(address => uint) public interestAccrued;    uint public interestRate = 5; // Interest rate as a percentage
    // Deposit function where users can send Ether to the contract    function deposit() public payable {        require(msg.value > 0, “Deposit must be greater than 0”);        balances[msg.sender] += msg.value;    }
    // Calculate and update accrued interest for a user    function calculateInterest(address user) public {        uint balance = balances[user];        uint newInterest = (balance * interestRate) / 100;        interestAccrued[user] += newInterest;    }
    // Withdraw function where users can withdraw their initial deposit along with interest    function withdraw(uint amount) public {        require(balances[msg.sender] >= amount, “Insufficient balance”);        calculateInterest(msg.sender); // Update interest before withdrawal        uint totalAmount = amount + interestAccrued[msg.sender];        balances[msg.sender] -= amount;        interestAccrued[msg.sender] = 0; // Reset accrued interest after withdrawal        payable(msg.sender).transfer(totalAmount);    }}
Developer Exercise and Tips: Implement a dynamic interest rate that adjusts based on supply and demand within the lending poolAlways have your code audited by a reputable third party to identify and mitigate potential vulnerabilities.Update your contracts regularly to address security concerns.

As you experiment with these DeFi examples and exercises, remember that the space is evolving rapidly, and ongoing learning is key to staying ahead. Use this knowledge to create applications that prioritize security, sustainability, and user empowerment.

NFTs beyond digital art

Non-Fungible tokens – Remember in childhood we would collect different cards –from Pokemon to cricketers and whatnot! NFT is also a magic card that if you own nobody else has it in the world.NFTs are digital items like art, music, or even special items in video games—that you can collect online.

What makes NFTs so special?

  • One-of-a-kind: NFTs are unique.NFTs prove that you’re the true owner of something special, and everyone can see that online.
  • Indivisibility: If you own an NFT, you can’t split it into smaller parts. It’s like a whole card you can trade or sell, but you can’t rip it into pieces and share it.
  • Ownership: NFTs keep track of who owns what. 

In the real estate sector, NFTs offer a revolutionary way to manage property transactions. By representing ownership through NFTs, real estate can be bought, sold, and transferred seamlessly on blockchain platforms. NFTs are also being utilized to protect and manage intellectual property (IP) rights. By tokenizing IP, creators and owners can maintain control over their work, enforce usage rights, and receive royalties:

  • Digital Ownership and Tokenization: NFTs enable the tokenization of real-world assets like real estate, collectibles, and luxury goods, giving them verifiable ownership on the blockchain.
  • Gaming and Virtual Goods: In gaming, NFTs represent in-game assets (weapons, skins, characters) that players truly own, enabling trading and use across multiple platforms or games.
  • Intellectual Property and Licensing: NFTs can be used to prove ownership and manage intellectual property rights, enabling artists, content creators, and innovators to retain control over their work and receive royalties.
  • Real Estate and Property Rights: NFTs can represent ownership of physical real estate or property, simplifying transactions and reducing administrative costs in the real estate industry.
  • Music and Media: Musicians and content creators can tokenize their work as NFTs, allowing for direct sales and monetization without relying on traditional intermediaries like record labels or streaming services.
  • Philanthropy and Charitable Donations: NFTs can be used in fundraising efforts, where buyers of NFTs support charitable causes, with the proceeds directly going to the selected organization.

Why go for NFTs?

  • Simplified Transfer process that ensures that the transaction is visible, secure, and tamper-proof.
  • Tokenized Ownership
  • Permanent Record and Provenance
  • Proof of Authenticity

Code: Real Estate NFT Smart Contract

pragma solidity ^0.8.0;import “@openzeppelin/contracts/token/ERC721/ERC721.sol”;
contract RealEstateNFT is ERC721 {    uint public nextTokenId;    address public admin;
    constructor() ERC721(‘Real Estate Token’, ‘REAL’) {        admin = msg. sender;    }
    function mint(address to) external {        require(msg.sender == admin, “Only admin can mint”);        _safeMint(to, nextTokenId);        nextTokenId++;    }}

In the above code,  The contract uses the ERC721 standard, which is ideal for NFTs because it ensures each token is unique and traceable.

DAOs in governance

Imagine a club where every member gets to vote on important decisions, but instead of having a president or a leader who makes the final calls, all decisions are made by everyone together. Interesting right? That’s how DAOs work.

How does DAO work?

DAOs are like online communities built on the blockchain where members of the DAO make decisions together by voting on:

  • How money should be spent?
  • What rules to follow?

DAOs give people a way to work together and make group decisions without needing a boss. Everyone has equal power to make decisions, and all the rules and actions are open for everyone to see, making it feel fair and transparent. It’s a new way of organizing and running projects, where trust comes from the code rather than from a single person in charge.

Code: Voting Mechanism for DAOs

pragma solidity ^0.8.0;
contract SimpleDAO {    struct Proposal {        uint id;        string name;        uint voteCount;    }
    mapping(uint => Proposal) public proposals;    uint public proposalCount;    address public admin;
    constructor() {        admin = msg.sender;    }
    function createProposal(string memory _name) public {        require(msg.sender == admin, “Only admin can create proposals”);        proposals[proposalCount] = Proposal(proposalCount, _name, 0);        proposalCount++;    }
    function vote(uint proposalId) public {        Proposal storage proposal = proposals[proposalId];        proposal.voteCount += 1;    }}

Conclusion

Blockchain has changed how we look at ownership, money, and decision-making. We’ve seen how Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) are creating new opportunities for individuals and communities. These innovations allow people to participate directly in financial systems and decision-making processes, making everything more transparent and fair. As developers, it’s essential to understand these technologies to use them responsibly. As you dive further into the world of Blockchain remember that there are countless possibilities. With the right tools and knowledge, one can bring any idea into reality. 

Stay Curious and Happy Coding!!

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