In the last few decades, this world changed a lot with the invention of the Internet. It sounds only possible to live with the ever-present Google or all the other social media sites like YouTube, Instagram, WhatsApp, Facebook, and others. The world might change again because of the invention of Blockchain. Blockchain has become increasingly popular within the last decade, and it might be an understatement to say that it is the next big thing in the tech world. The technology impacts various sectors, ranging from how it enforces contracts to making government work more efficiently, with its ability to create more fairness and transparency while saving businesses time and money.
This article will find a list of real-world applications of blockchain technology that are currently gaining popularity.
What are the Applications of Blockchain?
Blockchains represent decentralized permissionless databases designed primarily to eliminate the reliance on trusted intermediaries. They reduce operational expenses, expedite conventional procedures and frameworks, and provide additional advantages like precision through logic-based execution and automatic transaction record backup. Numerous concepts and applications are poised for transformation through utilizing blockchain technology.
Real-World Applications for Blockchain
Numerous opportunities for implementing blockchain technology extend far beyond the boundaries of the financial industry. This is due to the inherent nature of distributed ledgers within the blockchain, which lends itself to any sector requiring a trustless and immutable storage system for their databases. The distributed database’s architecture ensures exceptional security and transparency, as each node within the blockchain network maintains a copy of the database. These nodes collaborate to validate any changes made to the database, creating a transparent system with impeccable security. This enticing feature has proven too valuable to ignore, prompting numerous companies and industries to adopt blockchain technology for various purposes. Below, you’ll find a list of six real-world applications of blockchain technology:
Blockchain plays a significant role in finance, and its impact on asset management is no exception. Broadly defined, asset management encompasses overseeing and exchanging various individual assets, including fixed income, real estate, equity, mutual funds, commodities, and alternative investments. Traditional trading processes within asset management can prove costly, particularly when spanning multiple countries and involving cross-border payments. In such scenarios, Blockchain offers valuable assistance by eliminating the need for intermediaries like brokers, custodians, settlement managers, and others.
Blockchain has the potential to revolutionize healthcare through the use of smart contracts. These smart contracts enable two parties to establish an agreement without the requirement of an intermediary. All parties participating in the contract possess knowledge of its details, and the contract automatically executes when it fulfills the specified conditions. This proves highly advantageous in healthcare, where Blockchain can securely encode personal health records, making them exclusively accessible to primary healthcare providers with the necessary key.
Undoubtedly, one of the most widely recognized applications of Blockchain is in the realm of cryptocurrency. It’s hard to find someone who has not heard of Bitcoin and its remarkable popularity. Among the numerous advantages of using blockchain for cryptocurrency, the absence of geographical limitations stands out. Cryptocurrencies can facilitate global transactions, making them accessible worldwide. Nevertheless, this approach surpasses regional payment platforms like India’s Paytm, which are confined to specific countries or geographical regions and cannot be employed for cross-border transactions.
Internet of Things
The Internet of Things (IoT) refers to a network of interconnected devices capable of mutual interaction and data collection, enabling the acquisition of valuable insights. Any network of “things” becomes part of the IoT once it is interconnected. A prime example of IoT is the Smart Home, where various household appliances like lights, thermostats, air conditioners, and smoke alarms can be linked on a unified platform. So, where does Blockchain fit into this picture? Blockchain plays a vital role in providing security to this extensively distributed system. In the IoT context, the system’s overall safety is only as strong as its weakest link, typically the least secure device.
Copyright and Royalties
Copyright and royalties pose significant challenges in the creative sectors such as music and film. These artistic fields may not initially seem related to Blockchain technology, but they play a crucial role in ensuring security and transparency within the creative industries. Plagiarism and inadequate attribution to original artists are common in music, film, and art. Blockchain offers a solution by maintaining a comprehensive ledger of artist rights. Moreover, it enhances transparency and provides a secure record of artist royalties and agreements with major production companies.
Online Identity Verification
Online verification and identification have become essential components of any financial transaction online. This requirement applies universally to all service providers within the financial and banking sectors. However, blockchain can streamline the online identity verification process. Through blockchain, users can verify their identity once and, subsequently, share this verified identity with any service provider they choose. Additionally, users can select their preferred identity verification methods, including options like user authentication and facial recognition.
Real Estate Industry
Accessing property-related information online, including land titles, deeds, land registry records, surveys, and technical data, can significantly expedite real estate transactions. Additionally, making the terms of sale agreements readily available and visible to all involved parties can reduce the chances of misunderstandings and conflicts. Moreover, utilizing the immutable and secure blockchain network can help mitigate real estate fraud by ensuring all pertinent data is transparent and tamper-proof. Further automation can be introduced to the process, including the automation of attorney or broker fee payments.
Legal documents are susceptible to misplacement, fraud, forgery, and destruction. Traditional open records in courthouses often need more foolproof verification methods. However, with a blockchain ledger, digital copies are distributed across diverse nodes in the global cloud, making it challenging to compromise the data. Blockchain technology ensures information security through a sequential chain of transactions, each linked by cryptographic hashes. Since the next block’s hash cryptographically signs the preceding one, any attempt to alter a block would change its hash value, thus exposing any tampering.
Governments have the opportunity to bolster network security and prevent breaches by implementing blockchain data structures to store their data securely. This approach eradicates the vulnerability of a single point of failure, effectively guarding against data breaches. The decentralized nature of blockchain technology can introduce greater transparency into government operations, assuring the public of the absence of corruption and providing them with the ability to inspect and verify data at their convenience.
Blockchain technology has found many real-world applications that extend beyond its origins in cryptocurrency. From supply chain management and healthcare to finance and government, blockchain is revolutionizing industries by enhancing security, transparency, and efficiency. Its ability to create trust in a trustless environment reshapes how we conduct business and manage data. Blockchain continues to evolve, and it is set to grow, making it a transformative force in the digital age, with an increasing impact on the global economy and various sectors.