15 applications for Blockchain technology
The idea of a blockchain was first conceived as the mechanism supporting Bitcoin (CRYPTO: BTC). To solve the double-spending problem associated with digital currencies, Satoshi Nakamoto designed an immutable transaction ledger that chains blocks of data together using digital cryptography.
While the idea works extremely well for Bitcoin and other cryptocurrencies, there are many other useful applications of blockchain technology. Here are 15.
1. Money transfers
The original concept behind the invention of blockchain technology is still a great application. Money transfers using blockchain can be cheaper and faster than using existing money transfer services. This is especially true for cross-border transactions, which are often slow and expensive. Even in the modern American financial system, money transfers between accounts can take days, while a blockchain transaction takes a few minutes.
2. Financial exchanges
Many companies have sprung up over the past few years offering decentralized cryptocurrency exchanges. Using blockchain for exchanges allows faster and cheaper transactions. Additionally, a decentralized exchange does not require investors to deposit their assets with the centralized authority, which means they maintain increased control and security. While blockchain-based exchanges primarily deal with cryptocurrency, the concept could also be applied to more traditional investments.
Lenders can use the blockchain to execute secured loans through smart contracts. Smart contracts built on the blockchain allow certain events to automatically trigger things like a service payment, a margin call, full loan repayment, and the release of collateral. As a result, loan processing is faster and cheaper, and lenders can offer better rates.
Using smart contracts on a blockchain can provide greater transparency for customers and insurers. Recording all claims on a blockchain would prevent customers from making duplicate claims for the same event. Additionally, the use of smart contracts can speed up the process for requesters to receive payments.
5. Real estate
Real estate transactions require a ton of paperwork to verify financial and ownership information, then transfer deeds and title to the new owners. Using blockchain technology to record real estate transactions can provide a more secure and accessible way to verify and transfer ownership. It can speed up transactions, reduce paperwork, and save money.
6. Secure personal information
Keeping data like your social security number, date of birth, and other identifying information on a public ledger (for example, a blockchain) can actually be more secure than current systems that are more susceptible to hacks. Blockchain technology can be used to secure access to credentials while improving access for those who need it in industries such as travel, healthcare, finance, and education.
If personal identity information is held on a blockchain, it puts us one step away from being able to vote using blockchain technology as well. The use of blockchain technology can ensure that no one votes twice, only eligible voters can vote, and votes cannot be tampered with. Moreover, it can increase access to voting by making it as easy as pressing a few buttons on your smartphone. At the same time, the cost of organizing an election would drop considerably.
8. Government benefits
Another way to use digital identities stored on a blockchain is to administer government benefits such as welfare programs, social security, and health insurance. The use of blockchain technology could reduce fraud and operating costs. Meanwhile, beneficiaries can receive funds faster thanks to digital disbursement on the blockchain.
9. Securely share medical information
Keeping medical records on a blockchain can allow doctors and healthcare professionals to get accurate and up-to-date information about their patients. This can ensure that patients who see more than one doctor receive the best possible care. It can also speed up the medical records retrieval system, allowing for faster processing in some cases. And, if insurance information is kept in the database, doctors can easily check if a patient is insured and if their treatment is covered.
10. Artist royalties
Using blockchain technology to track music and movie files distributed over the internet can ensure that artists are paid for their work. Since blockchain technology was invented to ensure that the same file does not exist in more than one location, it can be used to help reduce piracy. Additionally, using a blockchain to track reads on streaming services and a smart contract to distribute payments can provide greater transparency and assurance that artists are getting the money they are owed. .
11. Non-fungible tokens
Non-fungible tokens, or NFTs, are widely viewed as a means of owning rights to digital art. Since the blockchain prevents data from existing in two places, putting an NFT on the blockchain ensures that there is only one copy of a digital work of art. It may make you want to invest in physical art but without the hassle of storage and maintenance.
NFTs can have a variety of applications, and ultimately they are a means of conveying ownership of anything that can be represented by data. This could be the deed of ownership of a house, the rights to broadcast a video, or an event ticket. Anything that is unique at a distance could be an NFT.
12. Logistics and supply chain monitoring
Using blockchain technology to track items as they move through a logistics or supply chain network can provide several benefits. First, it offers greater ease of communication between partners since the data is available on a secure public ledger. Second, it offers greater security and data integrity since blockchain data cannot be changed. This means logistics and supply chain partners can work together more easily with greater confidence that the data provided to them is accurate and up to date.
13. Secure networks of the Internet of Things
The Internet of Things (IoT) makes our lives easier, but it also opens the door for malicious actors to gain access to our data or take control of important systems. Blockchain technology can offer greater security by storing passwords and other data on a decentralized network instead of a centralized server. In addition, it offers protection against data tampering since a blockchain is practically immutable.
14. Data storage
Adding blockchain technology to a data storage solution can provide increased security and integrity. Since data can be stored in a decentralized manner, it will be more difficult to hack and erase all data on the network, whereas a centralized data storage provider may only have a few points of redundancy. It also means better access to data since access does not necessarily depend on the operations of a single company. In some cases, using blockchain for data storage can also be less expensive.
15. The game
The gaming industry can use blockchain to provide several benefits to gamers. One of the biggest advantages of operating a casino on the blockchain is the transparency it offers to potential players. Since every transaction is recorded on the blockchain, bettors can see that the games are fair and the casino is paying. Additionally, using the blockchain there is no need to provide any personal information including a bank account which can be a hindrance for some potential players. It also provides a workaround for regulatory restrictions, as players can play anonymously and the decentralized network is not likely to be shut down by the government.
Blockchain is in its infancy
Blockchain technology has only been around for a dozen years, and companies are always exploring new ways to apply the technology to support their operations. With the increasing amount of digital data being used in our lives, there is a growing need for the data security, access, transparency and integrity that blockchain can provide.