Bitcoin and Blockchain technology which provides an infrastructure, has been one of the most interesting technologies of the last period in terms of architecture, network structure and system algorithm. Objects between chains called “blocks” are transaction records that work in a distributed structure and are stored encrypted in the new generation process verification mechanism. Along with the blocks being connected to each other with chains, the chains are added to the last block in the system and they are recorded by following each other.
Chains consisting of blocks contain all transactions that are among the participants of the system, and each transaction is encrypted and stored. Participants of the system add these transactions to the chain by consensus. This way, each participant stands as a part of the system, the main thing is that a copy of these transaction chains is available to each participant and the participants can access the transactions in the chain transparently. Hence, these transactions can be stored in the nodes of the entire network without the need for all transaction records to be in a centralized database. With this system, data integrity, transparency and immutability of data are checked and all transaction history is recorded and data cannot be changed.
For this reason, Blockchain protects business processes from both errors and fraud activities. It is one of the most remarkable technologies of today, due to the fact that every information is verified and processed by an independent and decentralized structure. Blockchain is spreading around the world, it has started to be implemented in many projects from smart cities to aid programs. We will examine the exemplary blockchain projects in the world in detail below.
Blockchain Projects Around the World
First of all, blockchain technology has been used in various countries with several projects in the public sector. For example, creating property rights records, recording voting results during elections, controlling notary processes, etc. services are provided. Thus with the transparency, unchangeability, easy-to-follow systems fraud in public processes will be prevented.
To give examples from countries, one of the blockchain projects in the Netherlands is to receive salaries on digital receipts instead of Euros with the SmartVoucher in the pension system. In Malta, academic data validation system is used in Universities as a Blockchain project. In Singapore, traffic control is carried out with the sensor and camera system via Blockchain. In Zug, Switzerland, a personal digital identity card called Zug ID is used with the support of Blockchain technology. In Sweden, reconciliations are made through blockchain technology. For example, land registry, immovable property registration, real estate purchase, etc. financial transactions are made with the help of blockchain. Intelligent parking system was activated via blockchain in London, Oslo and San Francisco. In Barcelona, air quality measurement, sound control system and waste management with sensors are carried out thanks to Blockchain technology. Also Blockchain-based system has been established by Rotterdam Municipality to monitor the processes related to IOT waste management. In Georgia, with the digital certification system, goods management, identity management, supply chain management are carried out via Blockchain.
In the private sector, the most important sector using blockchain is the financial sector. The reason for this is that blockchain can easily prevent data leaks, data loss and fraud with distributed data storage and processing. However, the blockchain is used in the public sector to create distributed records of property rights, tangible assets, as well as to track processes that were not digitized before. Smart cities can be managed by integration with blockchain technology in IoT processes.
Moreover with blockchain technology, “non-digitized” objects can be tracked using special sensors. It can also enable direct interaction between objects based on blockchain smart contracts. When blockchain applications are examined in smart cities around the world, the city that covered the most distance with blockchain technology is Dubai. With the Blockchain policy, the Government of Dubai has decided to manage 100 percent of transactions via blockchain technology by 2020. Dubai aims to be a global blockchain capital and platform to explore blockchain-based solutions. Dubai also shows the world that it is permanent in the blockchain technology with it’s crypto positioning.