Beyond Bitcoin

Hear the word ‘blockchain’ and you’re likely to think of Bitcoin. And while blockchain is what makes Bitcoin possible, cryptocurrency is but one of the many applications that depend on this decentralised technology.

“Although cryptocurrency was the originator of the blockchain concept and the first such system that truly introduced the world to decentralised IT systems, blockchain offers a solution to many other challenges,” explains Dr. Imre Kocsis, a Senior Lecturer at Budapest University of Technology and Economics (BME), a leading technical university in Hungary and a SME4DD project partner.

According to Dr. Kocsis, blockchain can be a powerful business tool – particularly for SMEs. “SMEs can use blockchain to help reduce fraud, foster credibility with financial institutions and consumers, and improve operational efficiency within supply chains and lending processes,” he says.

It can also help with raising capital and managing investments.

Another interesting area in the blockchain arena is Self-Sovereign Identity (SSI), a digital identity management approach where individuals and SMEs have complete control and ownership over their digital identities and personal data, storing it in a digital wallet on their device rather than in a centralised database.

Beyond protecting individuals against identity theft, SSI can help SMEs and jobseekers. For example, with SSI, one’s professional certifications and credentials can be stored in a digital wallet. When that individual applies for a job in another country, they can show their digital certification and have it checked and verified via the blockchain. Once verified, the position can be filled – a win-win for both the hiring SME and the jobseeker.

“This same concept can be applied to a range of certifications, qualifications and diplomas that SMEs regularly need to check, potentially streamlining the recruitment and hiring process,” adds Dr. Kocsis.

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