The applications of blockchain go beyond just cryptocurrency. Regardless of the idea behind blockchain being conceived initially as a technology supporting Bitcoin, there are other beneficial applications of the technology. You may ask; how does the blockchain work? It is a digital record of transactions that is replicated and circulated across all the networks on the blockchain. Its application can also be beneficial in other sectors. Here are the practical and revolutionary applications of this technology.
The initial idea behind this innovative blockchain technology is still its best application yet. Money transfers with blockchain technology can be faster and less costly than using traditional money transfer services. This is particularly accurate with cross-border transactions. These are usually expensive and slow. Money transfers using the United States financial system can take days between accounts. However, a blockchain transaction can be completed in minutes.
Use Smart Contracts
Smart Contracts are similar to regular contracts. The only difference is that contracts on a blockchain are efficient and implemented in real-time, eliminating the need for a middle-man and increasing accountability for every party involved. This will save money and time while increasing compliance from the parties involved.
Over the past few years, several companies have emerged with the idea of decentralized cryptocurrency trades. With the use of blockchain technology for trades, exchanges are more efficient and less expensive. Decentralized exchanges eliminate investors required to lay down their assets, allowing for more authority and security. Regardless of blockchain-based trades mainly dealing in cryptocurrency, this idea could be used in traditional investments too.
Personal Identity Security
According to LifeLock, over 16 million U.S citizens complained of identity theft in just 2017. Scams on this scale can happen through everything, from hacking into confidential files to fabricating documents. However, by securing sensitive data like birth certificates, social security numbers, and more on a blockchain record, authorities could see a significant decrease in identity fraud claims.
Use in Healthcare
The use of blockchain in healthcare is still new but it is already looking promising. In fact, blockchain solutions in healthcare have shown the possibility of decreasing healthcare expenses, increasing access to data across shareholders, and modernizing business processes.
Use in Logistics
A primary criticism in the shipping industry would be the inadequacy of transparency and communication. The high number of logistics companies filling up the space is a major disadvantage. According to research by the logistics company DHL, there are over 500,000 logistics companies in the United States alone. This leads to transparency problems. This study goes on to highlight just how blockchain technology can be the solution to this problem plaguing the logistics industry.
Non-fungible tokens are regarded as ways to hold the rights to digital arts. Blockchain prevents the duplication of data. Placing an NFT on the blockchain ensures that there’s only one copy of digital art. This will make it just like buying physical art without the shortcomings of maintenance or storage.
Since the inception of Blockchain technology some years ago, businesses are looking for new ways of using this technology to simplify their processes. With the ever-increasing use of digital data globally, there’s a high demand for the data access, security, and transparency that blockchain technology can bring.