It Keeps Expanding! Blockchain Usage in The Real World
The concept of blockchain technology is not new. In his 1982 dissertation Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups, cryptographer David Chaum described a mechanism similar to blockchain. Stuart Haber and W. Scott Stornetta were also two of the very important contributors to the idea of blockchain. Its concept as a kind of cryptography dates back to the 1970s. This laid the foundation for the current blockchain technology. Throughout the years, several enhancements were made to the basic concept given by Chaum. These modifications were later encapsulated in Satoshi Nakamoto’s white paper on Bitcoin.
Although the concept functions well for Bitcoin and other cryptocurrencies, blockchain technology has a wide variety of other uses that are valuable as well.
Financial Transactions
Utilizing blockchain for transactions can be less expensive and faster than using existing systems. This is especially true with international transactions, which are frequently delayed and costly. Inter-account transfers can take days even in the modern first-world financial systems, but blockchain transactions are completed in seconds or less.
In the past several years, numerous companies have emerged to provide decentralized cryptocurrency exchanges. Using blockchain for exchanges expedites and reduces the cost of transactions. In addition, a decentralized exchange does not force investors to deposit their assets with the central authority, allowing them to retain greater control and security. Although blockchain-based exchanges deal largely in cryptocurrencies, the concept might also be used for more conventional investments.
Leasing/Lending and insurance
Smart contracts can be used by lenders to perform collateralized loans on the blockchain. Smart contracts created on the blockchain enable certain circumstances to automatically trigger actions such as service payment, margin call, full loan repayment, and collateral release. As a result, loan processing is expedited and costs are reduced, allowing lenders to offer better interest rates.
Using smart contracts on a blockchain can provide customers and insurance companies with better transparency. A blockchain that records all claims would prevent customers from submitting duplicate claims for the same occurrence. Using smart contracts can also expedite the process by which claimants receive payments.
Real estate
To verify financial information and ownership or transfer deeds and titles to new owners, real estate transactions involve lots of documentation. Using blockchain technology, real estate transactions can provide a more secure and convenient means of establishing ownership and transferring it. This can expedite transactions, cut down on paperwork, and save money.
Data sharing and protection
Encrypting identifying information such as your Social Security number, date of birth, and other identifiers on private permissioned blockchains (as recently adopted by the industry) may be more secure than current systems that are more vulnerable to hacking. In areas such as travel, healthcare, finance, and education, blockchain technology can be utilized to improve access to identifying information while securing it.
Keeping medical records on a blockchain enables doctors and other medical professionals to access accurate and updated patient information. This ensures that patients visiting several physicians receive the best possible care. In some situations, it can help expedite the retrieval of medical documents, allowing for more rapid treatment. In addition, if insurance information is stored in the database, clinicians may quickly determine whether a patient is insured and whether their treatment is reimbursed.
Voting and other government benefits
If the personal identification information is stored on a blockchain, we are one step closer to being able to vote using blockchain technology. Using blockchain technology can guarantee that no one votes twice, that only eligible voters can vote, and that votes cannot be manipulated. In addition, it makes voting as easy as tapping a few keys on a smartphone, hence increasing voting accessibility. Concurrently, the cost of conducting an election would be reduced.
The management of government benefits, such as welfare programs, Social Security, and Medicare, is another application of digital identities recorded on a blockchain. Using blockchain technology could minimize operational expenses and fraud. Beneficiaries can receive payments more quickly using blockchain-based digital disbursement.
NFTs and Artist royalties
Using blockchain technology to track music and film files disseminated online can ensure that artists are compensated for their labor. Since blockchain technology was developed to ensure that identical files do not exist in several locations, it can be used to combat piracy. Moreover, utilizing a blockchain to track plays on streaming services and a smart contract to distribute payments can give better transparency and ensure that artists receive their due compensation.
Non-fungible tokens, or NFTs, are viewed as a means of acquiring digital art ownership rights. Putting a non-fungible token on the blockchain ensures that only one copy of a work of digital art exists, as the blockchain forbids data from residing in two locations. This can be comparable to investing in actual art but without the storage and maintenance costs.
NFTs can be used for a variety of purposes, but they are a means of transferring ownership of anything that data can represent. This could be a house deed, the broadcast rights to a video, or a ticket to an event. Anything resembling originality could be an NFT.
Logistics and supply chain
Using blockchain technology to track products as they move through a logistics or supply chain network offers multiple benefits. First, it facilitates communication between parties by making data accessible on a secure public ledger. The immutability of the data on the blockchain gives higher security and data integrity. Therefore, logistics and supply chain partners may collaborate with greater confidence that the data they get is reliable and current.
Network security and data storage
The Internet of Things (IoT) makes our lives easier, but it also allows malicious actors to gain access to our data and take control of vital infrastructure. By storing passwords and other data on a decentralized network as opposed to a centralized server, blockchain technology can provide greater security. A blockchain also protects against data tampering because it is immutable.
Adding blockchain technology to a solution for data storage can increase its security and integrity. Since data can be kept in a decentralized manner, it will be more difficult to hack into the network and delete all the data, whereas a centralized data storage provider may have only a few redundancy points. It also increases access to data, as it is no longer dependent on the operations of a single organization. Using blockchain for data storage may be less expensive in some instances.
A long road ahead for blockchain technology
Blockchain technology has existed for not very long, and businesses are still investigating new methods to support their operations using the platform. There is an increasing need for the data protection, access, transparency, and integrity that blockchain may deliver, as our use of digital data increases.
