In the normal money transfer from one account to another, a process that involves the existence of several levels of processing the received information is initiated, where each link of the chain checks the validity of the data, which means it may take quite a long time and can raise fees charged on the commission. With digital blockchain money, this process is automated and checking is done without the need for a human factor to participate. Here we come to an interesting situation when the expectations of system users are in the interest of cash flow to be as quick and cheaper as possible, and the interests of banks where money transfer is one of their sources of income. It is indicative that banks and institutions are the first to react to this technology.
Two years ago, the famous US bank Goldman Sachs, together with IDG Capital Partners, invested $ 50 million in the launch of Circle Internet Financial. Giants in the banking and finance sector, such as JPMorgan, Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank or BNP Paribas have been experimenting with blockchain for some time in order to reduce the costs that arise as a result of a money transaction. It will be interesting to observe how banks will try to survive in a market game with new rules. Individuals claim that blockchain is the beginning of their end, but it is still hardly imaginable as long as there is capitalism.
What other companies did
Bankers aren’t the only ones that realized the great potential of the new technology. A company named Everledger uses blockchain to provide data (over forty characteristics) about each individual diamond and they in this database already have data for over one million precious stones. IBM has implemented a blockchain-based system for its own needs to make money circulation cheaper and simple.
The Guartime company from Estonia created a database called Keyless Signature Infrastructure, whose function is to provide protection of information about citizens held by public authorities because citizens use one thousand of electronic services. Sweden is implementing the establishment of a database with cadastral information, while Greece has announced that it will do the same thing.
One of the leaders in the practical application of this new technology is the city of Dubai, which plans to transfer the entire infrastructure related to registration and licensing in the sphere of business to the blockchain. This will shorten the time that is normally needed to go from just an idea to the whole business project to a large extent. It remains to be hoped that other states as well will soon implement experiences from Dubai in their own field.
The potential was also seen by the United Nations, which are implementing a project to divide humanitarian aid to refugees in Jordan, which is based on new technology. They also launched a project called Building Blocks, aimed at reducing the money transfer costs of the WFP (World Food Program).
Blockchain far outstrips the technology on which crypto-based devices are based. A term that very few people understand, it can be increasingly seen not only in the tech media but also in the mainstream. Probably the main reason for this lies in the vigorous rise in the value of the crypts, but also the growth of their number. Conceptually, crypts are somewhere between mathematics, sociology, economics, law, and politics.
By understanding the problems blockchain solves and the main concepts on which it is based, it becomes clear why this technology is so significant. The basic concepts were developed in the original Satoshi Nakamoto document from 2008 under the title Bitcoin: A Peer-to-Peer Electronic Cash System. With his work, Satoshi laid the foundation of Bitcoin.
How does it work?
This database is completely decentralized meaning it isn’t stored anywhere. There is only one ledger that is owned by everybody and is public. Every transaction is precisely recorded and timed by all participants of the system. Why can no one cheat? Because if I were to cheat I would not be synchronized with other system participants and transaction records. The rules are defined at the beginning and implemented through the code. In this way, Satoshi first proved that the problem of double spending in digital goods can be solved without a third party or an intermediary in which both parties trust.
Digital good, in this case, functions like a physical asset – it can not be in two places at the same time. Two people or organizations can completely safely, anonymously and without knowledge of each other electronically perform the exchange of values (money or digital well) without intermediaries. This is possible because the entire history of all transactions that have ever been done within the network is preserved by each network participant and must match each of the devices on which it is stored. Also, a certain number of network participants must validate the transaction whenever it occurs within the network, after which it is permanently cryptographically locked and impossible to change.
Blocks and mining
Anna sends Jake 100 dollars from her bank account. In today’s financial system, the bank is the one who guarantees that from one account that money has been deleted and that the other one has received 100 dollars. The same 100 dollars must not be in two different places. Anna and Jake may not believe each other, but they trust the bank as an intermediary.
The principle is the same for ownership of assets or the conduct of any book-keeping transactions. The problem is solved by the broker providing the guarantees. At Bitcoin, this problem is solved by a mathematical algorithm that cannot be influenced. The book pages in the blockchain case are blocks. Network members who keep track of transactions in a block verify and lock it. For this work, the network rewards them with part of a bitcoin and this process is called cryptocurrency mining.
Often, we can hear words like Bitcoin and Blockchain, whose true meaning is insufficiently clear to us. Nevertheless, these “magical” words attract us primarily because there is the possibility of fast and big profit of Bitcoin trade.
For Bitcoin, it is usually said that this is a new type of currency or money. Is that right? Each currency has a central bank that emits a currency and monitors the monetary policy, so it determines how much money will be broadcast and determines the exchange rate of its own currency in relation to other currencies. Bitcoin doesn’t have its central bank so what determines its exchange rate? Many economists claim that Bitcoin is actually a commodity rather than money, but let’s suppose that it is a currency.
Ownership of Bitcoins
The next question is if I buy Bitcoin where is it stored and how do I know it belongs to me? Bitcoin is nothing more than an electronic record that is on the computer and doesn’t exist in physical form, so there are no coins or printed Bitcoin banknotes. An electronic record contains a unique code that defines Bitcoin or its part that we have purchased and which is ours. Of course, we do not have to buy one Bitcoin but we can buy and own one part of it. The unique code that describes Bitcoin can be compared with the serial number of the printed banknote. Let’s imagine that it is enough to know the serial number of the banknote and that it is not necessary to have the banknote itself, as is the case with Bitcoin.
How to know that the purchased amount of Bitcoins is ours? The Bitcoin property record is also an electronic record somewhere on the computer. However, in order to make sure that one of the owners of Bitcoins did not change the amount he owns, this record is located in several places at the same time. A system that ensures that the electronic record of our ownership of Bitcoin is reliable and that no one can challenge it is called Blockchain. The blockchain is a system whit which the ownership information over Bitcoin is located in multiple places at the same time. Should there be a deliberate or accidental change of ownership information in one place only, Blockchain would immediately see this disagreement and declare the amended record invalid.
Why Is Bitcoin Called Cryptocurrency and what are those?
We mentioned the code by which Bitcoin is identified and on the basis of which we know reliably that this Bitcoin exists and belongs to us. His code is obtained by complex mathematical calculations using cryptographic mechanisms. Cryptography is an area that deals with encryption and decryption of data, and one of its special parts is used to calculate the Bitcoin code.
All currencies using cryptographic mechanisms are called crypto currencies. Currently, there are more than 1,300 different crypto currencies, of which Bitkoin is certainly the most widely spread and most famous.
The blockchain is undoubtedly a transformative technology of the 21st century that will redefine various aspects of the organization of society. It is not then strange why its application is currently not only explored by banks or technology companies, but by all industries and governments of various countries.
The reason is that in addition to these basic functions blockchain has the ability to execute programs that lead us to its application and potential business logic. Blockchain offers solutions that far outweigh the basic logic and application of Bitcoin – a transaction. The essence of the blockchain network is in a distributed book containing the records of all transactions that occurred within the network. The main idea of the blockchain is decentralization. However, blockchain can be public and private.
Private is somewhat counterintuitive because the main purpose of this technology is the distribution of power in the system. Whatever the system of proof is at work, no group can control or change the rules arbitrarily. In this way, decentralized crypto-applications and applications have developed a checks and balances system against any operation of the opposite system. This is nothing more than a new way of maintaining an agreement, with a big difference that these arrangements are not guaranteed by any central authority.
We can say that if several different banks make a blockchain, it is not actually a blockchain, but a base. Only if banks, regulators, shareholders, and customers of the bank have access to a blockchain and participate simultaneously, opposing the power of one another, this is a blockchain. The test and balance system is the essence of this technology. That’s why a real blockchain system must be open-source, non-exclusive and decentralized.
Blockchain vs. classic database
If the blockchain is described in this way why would an organization decide to develop it against the usual database? The blockchain is an attractive solution if there is an intention or need for a database to be decentralized. A company or organization may want to achieve a greater data security.
The current databases in business networks are inefficient (each member keeps separate records – overlaps), expensive (central databases are not cost-efficient) and vulnerable to attack (it is possible to hack or enter false information). By using a blockchain, the system becomes more robust and has no single-point of failure. The distributed network cannot be hacked, manipulated, or vulnerable to attacks such as traditional databases. Centralized databases have defined user access to the system. A specific individual, organization, computer, or operating unit directly manages the system.
Because of its decentralized nature and the absence of one authority that manages the system, trust is of paramount importance in one such system. Due to the fact that it is a decentralized and distributed system, the information entered on the blockchain must be unchangeable, ie, they must not be changed subsequently. It is necessary that all who participate in the maintenance of the network (that is, validate) agree before entering the data.
Given that we expect the next move in health to represent the acquisition of digital technologies – either to improve the patient’s condition, or to improve the efficiency of health care tasks – it is important that we focus the current challenges on the exchange and accessibility of data so as not to become an obstacle to progress. In this context, data blocks can be the main savior of this industry.
There are 26 different medical recording systems used in Boston (USA), each system having its own language for presentation and data sharing. Key information is therefore scattered across multiple objects and sometimes, when you need it most, is inaccessible – this is a situation that plays an important role in the US every day, which means high costs, and sometimes even the life of a patient.
How it can help hospitals?
Similarly, as John Halamaka, a co-editor of information in the Beth Israel Deaconess Medical Center in Boston, says that the problem is solvable with customized data blocks, he agrees that his visit is recorded in the data block system – i.e. a decentralized digital book that resembles the one on which the Bitcoin originated. Instead of paying, these data blocks would record important health data in a virtual cryptographic database that would be maintained by a network of computers that are accessible to anyone who runs the software. Any indicator that the physician would put into the data blocks would become part of the patient’s record, regardless of which electronic system the doctor would use – so it could be used by all health professionals without any compatibility problems.
Healthcare professionals can obtain the most from the acquisition of data block technologies. To begin with, “Blockchain” enables the installation of all forms of data. This means that it can include not only prescriptions of medicines prescribed by the doctor and records of treatment, but also information on diet, exercise and records of domestic measurements (eg blood pressure in patients with arterial hypertension) brought in by patients. The presence of such longitudinal patient data in the time of healthcare professionals will enable a better interpretation of the disease symptoms and a regulation of effective treatment adapted to the patient.
How can it help the patient?
Currently, doctors rely on treatment data from different patients when prescribing medicines. The likelihood of success of such medicines is 50%. In many cases, doctors are waiting for the patient’s response when changing the drug. With the availability of longitudinal patient data, doctors would know in advance which treatment is more appropriate for the patient according to his medical history.
If it were to be implemented on a larger scale, data blocks could significantly reduce the cost of healthcare in the world. In addition, it can allow multiple participants to selectively access patient data, thus avoiding the risk of this information. IBM’s research report highlights the following areas of nursing care that can benefit from data blocks: clinical research records, patient records, regulatory compliance, medical device data integration, treatment records, billing and claims, asset management and contract management.
Data blocking technology, better-known as blockchain, has the potential to generate radical health care changes where the patient is in the first place. This technology enhances the safety and interoperability of health data and sets up a new model for the exchange of health information by creating electronic medical records that are more effective and interactive. Although data blocks are not a solution for all, new areas of development show the potential for experimenting, investing and testing the concept of this new technology.
How does it work?
The blockchain is a constantly growing list of records called blocks that are linked and protected by cryptography. At the core, data blocks are a network-linked system of records of prior information blocks and transaction data for these blocks. The technology is based on cryptographic methods that allow each participant in the block-exchange process to store, exchange or view information about them, without the need to trust other participants. This technology does not have a centralized system, instead, transactions are stored and distributed over the network to all participants. When a transaction occurs, all participants are informed of it and their confirmation is required before the transaction information is added to the blocks. This eliminates the need for mutual trust among the participants on the network, while the unambiguous audit trail of all interactions is recorded. Only updating of future records is permitted, which allows the system to be (relatively) safe and therefore reliable. This also means that the entire chain can act as a secure book.
Now, we can learn about interesting events in the entrepreneurial Wellness Camp. The medical staff, who monitored the participants’ life habits, made key mistakes in recording their observations. A good example was the height of one of the participants, which was recorded as 147 centimeters instead of 157.
Thus, the participant recorded in his record as too thick. Similarly, it happened with another participant who incorrectly recorded blood pressure data. Despite the fact that the staff of both faults abolished, we were left with the question of how many similar errors are occurring every day in the healthcare system and what their consequences can be. In addition to preventing such errors, the data block system could allow for the long-term preservation of medical data and could also provide guidance to healthcare providers that collect this data. Experiences from other countries are similar. US-based health organizations have spent about 93 billion dollars over the last five years alone for data sharing costs.
Are you surprised?
It is necessary to recognize that medical databases can be very complex – partly because of the non-linear nature of diagnosis and treatment, as well as because of different health standards in different regions of the world. Likewise, the availability and exchange of medical information may be limited by the laws on the protection of private data and other related laws. In many countries, the patient does not have complete access to his own medical records.
This year, police in Italy carried out an attack on a house and a laboratory of a married couple who are in the same time scientists. Police confiscated all digital equipment owned by these nano pathologists. They took computers, laptops, and disks, and they also took al the research and work. Because these two scientists, they both tried to make nanoparticles that could contaminate the vaccines. They touched the forbidden key of medical science. They went to the zone of the ban on the commission of the alleged crime of scientific discovery and research.
They found contamination in the vaccines selected at random, so basically these two doctors discovered something that no one before them knew: The vaccines contained not only inorganic chemicals, there was also tungsten, stainless steel, copper, other rare elements and metals and that should not be Injected into pregnant women, fetuses, newborns, infants and young children who are still developing their lungs, nervous and immune system.
When these two scientists in 2017 published all of their research and findings, the next logical step for the Centers for Disease Control and Prevention and World Health Organization would be to open research into their demands by engaging independent professional scientists to perform their laboratory tests and confirm or reject results. If confirmed, health agencies should receive new policies in order to make the whole chain of supply of the vaccine safer and to carry out strict controls and quality check programs.
What really happened?
Nothing happened. For the authorities, it was way cheaper to just attack these two scientists and doctors than to disturb a whole corruptive run-on-money story that focuses on politicians. In fact, controls have led to improved safety in the automotive and tobacco industry. But there was none of this for the safety of the vaccines. Why? Because so-called health care keeps up with Big Pharma and their mainstream medication, so the vaccine is now one big taboo. The media will simply not investigate any bad and negative stories about the vaccine.
What can you do to bring transparency in the world of medicine and in the production of a vaccine dominated by Big Pharma, with agencies from a government that does not deal with real people’s problems and media that broke public debate and a right of free speech?
The best answer is: blockchain technology
Blockchain medicine projects
There are several healthcare projects launched by the blockchain technology. They are mostly industrial-oriented and do not really deal with individuals at all. The question is – why doctors, hospitals, and dentists have access to every healthcare record from all their patients in separate databases, but the people who gave this information have absolutely no access?
One Norwegian company is developing a software and healthcare blockchain platform for the USA. The same Norwegian company is doing it for the European Commission. However, it was emphasized that these were two different platforms.
Many scientists, doctors and other people involved in the healthcare system see the great potential of blockchain technology in this field. Not only would it be desirable to pay with cryptocurrencies during a medical intervention, there are other things as well. If a patient record is written and stored as a blockchain, it would not only prevent errors in the records but will allow better patient monitoring throughout his life.
This means that medicines, surgeries, and other interventions would be more suitable for each person. Not only that this blockchain technology would ensure that every person gets exactly the same professional treatment from every doctor they see, but that would happen not just in the same hospital, or in the same city, but also in the same state as their data and history of health would be available to every doctor. But the story is even wider. Such data would be available to the patient. And all that in a fully protected and safe manner. The patient would have complete insight into his state of health and the history of the disease, but also the whole medical history of his life. This system reduces errors in treatment at zero. This system is fair because every doctor can treat you completely according to you. This system is good because it gives you the opportunity to fully access it, as it should be – because it’s about you. The best treatment wherever you go, but completely safe as explained in our other blog posts.
How can we make that happen?
A large number of scientists, professors, doctors and other professionals from all over the world lead this debate and the development of blockchain technology in a direction that is suitable for use in medicine. For example, there are numerous conferences dedicated to this. AdvaMed 2016 was the leading MedTech Conference in North America, bringing more than 1,000 companies together in a uniquely multifaceted environment for business development, capital formation, innovative technology showcasing, world-class educational opportunities and networking. An event rich in international flavor and featuring a deep, diverse attendee list that includes influential policy-makers, business executives, and media, AdvaMed 2016 had a purpose to advance industry discussion from key perspectives through detailed panel sessions, executive forums and more. It was a “must-attend” event for any MedTech company.
Currently, numerous healthcare pilot projects are dealing with data technology. One of the most advanced countries in the implementation of blockchain technology is Estonia, which already uses data blocks for the provision of local government and services. They also plan to have access to medical information through all data blocks for all its citizens. 2016, Estonia has digitized all medical records and this is one of the key first steps towards the implementation of data blocks in the future.
The best is yet to come
Trough conferences like that the medical future is bright and safe. The goal is healthier life and improvement of medical technology. These conferences gather all innovators and companies that are connected to this subject. This is also about diagnostic products, medical devices, health information systems. Such a debate raises ethical standards and stimulates growth and the development of medicine.The future is here and it is time we all get involved in shaping that future in a way that will be highly professional, revolutionary, liberating and safe.
The use of Blockchain technology is very wide, and with its help, many questions that may sound utopian can be answered. By using this technology, the bureaucratic apparatus could be drastically reduced. Transfer money without intermediaries, without limitation, in real time and without additional costs. All this can incredibly affect the development of the global economy and even civilization as a whole. The introduction of such a system could be a huge blow to business malversations, corruption, criminal and political influences… It sounds like a fairytale.
But we know that in the stories of a bright future, there is always a famous “but”, without which it is practically impossible to tell the whole story. It is hard to believe that current carriers will be able to give up leverage that they hold in their hands so easily. We will see how the bankers will try to retain the profits they are now having, in which way the owners of large capital, state and politicians will try to keep the positions they have gained since history is known to be not smooth. The world in which the passport or any document is removed for free, where jobs are settled without waiting in line or where it is possible to send money to another person without any commissions, can sound like utopia, but thanks to Blockchain it is practically possible. We still have to wait for a certain amount of time until the system comes to life.
What is bad with this idea
One of the negatives of the Blokcejna idea and its realization is connected with the high consumption of electricity caused by miners. The future of mankind will move towards rational energy consumption, and a more efficient way of carrying out verification tasks will have to be designed. One of the guidelines for the new approach was defined last year by Vitalik Buterin, the younger director in Blockchain’s world of famous Ethereum, which proposes a new approach to mining called Proof-of-stake, instead of the standard Proof-of-work, which would greatly reduce the need for systemic resources.
When we already mentioned him, he met with Russian President Putin at economic forum in St. Petersburg, and they with cooperation agreed on an open possibility for the introduction of the Ethereum platform and parallel development of Russian money as cryptocurrency, which would have a positive impact on the development of the economy in that country . The director of the largest Russian bank Sberbank, Herman Gref, said that it is necessary to wait for another 18 months to get the conditions for implementing the Blockchain project until all infrastructure issues are resolved. Another potential problem in the implementation may be related to the low bandwidth of the Blockchain network, as is currently the case with Bitcoin, where it is sometimes necessary to wait for several hours in order to get a confirmation of the transfer. This is, however, a consequence of the not very happy solution of the Bitcoin network, and we believe that similar networks in the future will have fewer problems.