Explore the top-rated blockchain use cases
Blockchain technology is characterized by its core characteristics: decentralization, transparency, immutability, and automation. These characteristics can be applied in many industries, creating various use cases. According to the latest market study, the global Blockchain market is expected to grow at a CAGR of 67.3% to reach a value of US$ 39.7 billion between 2020–2025. Here are the top blockchain use cases that we believe are most relevant for institutions, governments and enterprises.
Financial services are plagued by slow payment settlements, security vulnerabilities, inefficient operational processes and limited transparency. Blockchain facilitates efficient digitalization, which increases liquidity, lowers capital costs, and lowers counterparty risks. It would be bold to say that the financial sector is the largest beneficiary of blockchain technology, especially for cross-border payments. Financial services giants have begun to use distributed ledger technology for funds transfer between countries. Ripple, a blockchain payments company, is one of the major industry partners that has been partnering to tap into these more cost-effective, transparent and secure ways to settle cash transactions.
Insurance and banking
Insurance claims can be fraudulent, and claim assessments may take too long. Blockchain secures data verification, claims processing and disbursement, which greatly reduces processing time.
Financial institutions and banks can use blockchain technology to improve payment settlement. Many banks collaborate to make the banking system work. Traditional systems involving multiple intermediaries before cross-border transfers and payments are processed can lead to delays and increased customer charges. Blockchain technology allows payments to be easily captured and shared with all parties in real-time. Leading banks around the globe are creating private blockchain networks to serve the sector.
The public sector and government
We have seen the hacking of government agencies in the last decade. This is possible due to the fragile IT infrastructure used by these agencies. Blockchain technology can help to fix these security holes. Government agencies can use DLT to store and share data securely and transparently. Open-source ledgers can make auditing more transparent, while government procurement processes can help reduce leakage and prevent misappropriation of funds.
The election is an integral part of any democratic government’s transition. Blockchain technology is being used now to improve the electioneering process. The immutability and security of the stored data make open public ledger systems almost invulnerable to hacking. This allows for an open, fair and credible election process.
Healthcare and the life sciences
Blockchain-based healthcare solutions can make it easier to track medical supplies and manage medical data faster and more efficiently. This will improve patient care, allow for medical discoveries, and ensure that drugs are authenticated on global markets. Blockchain and DLTs may provide additional security for medical records stored on-chain. Apart from protection against hackers, storing data on an open-source distributed ledger may help improve the accuracy of diagnosis, increase the affordability and make it more affordable to access medical treatment.
Blockchain technology can make it easier to use digital wearables that collect vital data like blood pressure, heartbeat, and daily water intake. Blockchains allow for the recording of data which can reduce storage costs and enable data sharing in real-time. As blockchain platforms are highly cryptographic, data security can also be improved. Additionally, delays in data transmissions can be eliminated.
A blockchain solution for institutional use cases reduces the loss of total productivity that manual operations cause to law firms every year. It provides accessibility, transparency, cost savings, speed, and data integrity. Blockchain storage makes it easier to store regulatory data and other legal documents that are frequently in demand. Another major use of blockchain is the revolutionization of business contracts. Smart contracts built on Ethereum and other functional blockchain networks can simplify issuing business agreements between small businesses and parties involved in global trade.
Supply chain management
A global supply chain that exists today is often inefficient, not well tracked and often exploitative. The global supply chain and logistics industry uses blockchain technology to track the movement of goods between multiple locations. Transparent recording of data related to goods movement on the blockchain will bring transparency, and all stakeholders can see exactly where the goods are at any given moment. This allows for efficient management of all parties involved in the transaction. Besides the ability to track goods in real-time, blockchain integration in the supply chain can also provide security for cash transactions, reduce delays, cut additional expenses and reduce employee failures.
Global trade and commerce
Major trading companies and consortia are recognizing blockchain as a transformative tool in managing global supply chains, trade finance, and exploring new business models. This allows the tokenization and credit letters, as well as existing documents, to be secured. The existing trade finance systems are inefficient and have vulnerable points. Blockchain can digitize trade finance to facilitate -
- Transparent governance
- Reduces complexity and number of intermediaries
- Faster processing
- Lower capital requirements
- Reduced risk of fraud, human error and counterparty theft.
Digitalization has forced us to interact with people we have never met. Blockchain applications are a great way to enhance cybersecurity because they allow you to build trust in an uncertain world. Blockchain offers a way to protect your data from malicious actors prying eyes. It is important to note that every digital platform that operates over the internet is an element in cyberspace. Blockchain can help protect against malicious activities.
Blockchain unlocks capital markets easier, faster, and cheaper access to capital. It lowers barriers to issuance, enables peer-to-peer trading, quicker settlement and clearing, reduces counterparty risks, simplifies auditing and streamlines compliance.
Central bank digital currencies (CBDC)
CBDCs, a digital version of central bank money, offer central banks unique benefits at wholesale and retail levels. They include increased financial access for individual clients and more efficient infrastructure to facilitate interbank settlements.
Decentralized finance (DeFi)
Decentralized finance -DeFi- refers to the shift from centralized financial systems to Ethereum-based decentralized technologies. This new economic system is creating new standards in financial access, opportunity and trust. Millions of people are participating in this.
Blockchain-based digital identity systems provide a single, interoperable and tamper-proof network that offers key benefits for users and enterprises. This solution provides greater control over data and protects against theft.
Energy and sustainability
Siloed infrastructure, inefficiency, and lack of optimization are major problems for oil and gas companies. Blockchain solutions for oil and gas distribution and operations can dramatically improve process efficiency and lower costs.
Entertainment and media
The entertainment industry is estimated to lose a huge amount yearly due to fraud, piracy, and theft of intellectual property. Blockchain technology can track any content’s life cycle, which can help protect it and allow the distribution of genuine digital collectibles.
Enterprise Ethereum allows the digitalization of assets and financial instruments. This allows for fractionalization, increased access to global markets, liquidity, and democratized access to real estate investment opportunities.
Luxury and retail fashion
Retain fashion and luxury industries are constantly changing to meet customers’ needs. Blockchain can address industry problems that have existed for a long time by improving data management tools and supply chain operations. It also reduces the risk of counterfeiting and grey markets.
Smart contracts that are Ethereum-enabled can be used to streamline existing esports operations and generate new revenue models. They also increase fan engagement through enhanced loyalty programs, incentives, and other benefits.
Blockchain allows the digitalization of assets using IoT sensors, and digitalization allows you to track the condition and location of your items. Thus, blockchain can store, manage, protect, and transfer all this information.
It’s amazing to see how blockchain is changing industries and how it continues to innovate with the times and changing trends. Blockchain is integral to every industry, from financial services to healthcare to supply chain management and real estate. Thanks to the steady rise of blockchain-related use cases and widespread adoption across various domains, it will become the dominant technology in the future.