3 Real Use Cases for Blockchain Adaptation in the Real World
Blockchain technology is what has allowed the cryptocurrency space to explode onto the world stage in the last few years. However, Blockchain’s uses are not limited to cryptocurrencies. Financial transactions are the most obvious choice for applying this innovative technology. Now blockchain has been spreading its wings. Blockchain technology is now being put to use in education, insurance, online gaming, ride-sharing, logistics, and much more.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
-Alex & Don Tapscott, authors of ‘Blockchain Revolution’ (2016)
What blockchain offers is a transparent but safe way to store information. It allows for varying levels of privacy as well. A blockchain ledger is immutable; it cannot be tampered with or edited. Last but not least, it offers greater security. Information is encrypted, and blockchain ledgers are distributed, making finding one point of weakness to exploit incredibly difficult for a cyber-criminal.
Here are some of the amazing ways blockchain technology is being applied in the real world…
1. Insurance
Blockchain technology is transforming the insurance industry in many ways. It empowers new platforms to make insurance simpler, more accessible, and cheaper. Blockchain technology is now used to remove inefficiency in the insurance industry. The result is lower insurance costs.
Insurance companies are suffering from several problems that could easily be avoided. Waste and slow service are caused by outdated technologies and practices. Huge portions of your insurance costs go to administration. Traditional insurance companies use large offices where they hire many workers. They often employ costly HR departments with unnecessarily slow and costly working procedures. On top of this, insurance companies have to dedicate resources to detecting and avoiding fraud.
How Blockchain Solves the Insurance Industry’s Greatest Challenges
Blockchain-based insurance offers solutions that solve the worst setbacks to insurance. Blockchain’s transparent ledgers remove the need for a massive anti-fraud apparatus in an insurance company. It also simplifies many other processes through the use of smart contracts. A Smart Contract is a binding agreement for an exchange in a transparent, conflict-free manner, without requiring the services of a middleman. This saves the insurer and the ensured time and money.
The process of investigating claims is another drain on insurance companies. The costs vary depending on many factors, but they always require plenty of attention. This translates to more working hours and more money lost. This is where automated smart contracts come back into the picture. For small, low risk claims, payouts can be automated. Larger and more complex claims can be processed using evidence compiled on the blockchain.
Almost every step in buying or using insurance is made easier through blockchain technology. Blockchain has been demonstrated to be an effective means of creating greater transparency, trust and security — three things that the insurance industry is sorely lacking. It also lowers costs by reducing these burdens on the insurer.
Black Insure:
One of the best examples of blockchain insurance is Black Insure. Black Insure is a digital insurance company on blockchain. Black Insure uses automation and employs the most modern blockchain-based solutions. They offer insurance brokers the opportunity to connect with capital to launch their own virtual insurance companies as well. The result is lower costs across the board.
2. Education:
Education is one of the most critical and quickly-developing concepts in society. E-learning platforms have taken the world by storm in recent years. The same can be said of online tutoring platforms such as Khan Academy. Now there is a place in education for blockchain as well.
Students are regularly educated in both formal and informal settings. The typical student’s learning process no longer strictly takes place in a school classroom or lecture hall. The ‘informal’ areas are the ones where blockchain-powered educational models have the opportunity to shine.
Blockchain platforms can simplify the accreditation process and allow for a more personalized learning experience. This gives it the ability to change education. It also has many potential applications that improve verification and security measures.
However, it is decentralized education platforms that are at the heart of what blockchain has to offer. Decentralized blockchain platforms are maintained by consensus rather than central authority. This refers to a peer-to-peer learning experience that still maintains standardized assessment and accreditation across different platforms. The result is a more globalized, transparent and accessible approach to education.
Citation & Accreditation:
Verifying credentials and properly citing academic work are among the larger challenges facing traditional education models. Blockchain offers multiple solutions to these concerns.
The process of validating educational credentials is not as easy as it sounds. Depending on what part of the world you are from, there may be many accreditation paths available. Accreditation paths also vary by type of institution. Verifying credentials generally involves contacting the accrediting institution and going through a process that requires expert attention. Then someone has to deal with a set of regulations, with each country having their own set. Blockchain offers a modern, decentralized solution that removes the need for all the unnecessary work. All of this bureaucracy can be reduced to a few clicks. Similar processes can be applied to the accreditation and citation of academic work.
Blockchain accreditation platforms can be used to reward academics with tokens for every citation given to their work.
Platforms like Cryptomaniaks provide education in cryptocurrencies. Others like ODEM are already applying some of these aspects to other educational services.
3. Ride-sharing:
Finally, the ride-sharing industry has as much, if not more to gain from blockchain than education and insurance. Blockchain technology has opened the door for several groundbreaking innovations in ride-sharing. First, let’s go over some of the biggest grievances people have with the ride-sharing industry.
Safety:
Even the biggest ride-sharing platforms such as Uber and Lyft have gone through scandals over their driver’s behavior. Unwanted touching and even assaults have resulted in massive lawsuits. Fortunately, blockchain-based solutions tend to offer insightful and innovative safety solutions.
Middleman Fees:
Ride-sharing apps often charge large intermediary fees for connecting a passenger with a driver. These fees are passed on to the customer, while also cutting out a portion of the driver’s income.
Lack of Community Building Initiatives:
Most of all, most ride-sharing apps don’t offer great incentives for either drivers or passengers.
More Problems, More Blockchain Solutions:
DACSEE, a blockchain-based ride-sharing app based in Malaysia
empowers passengers with the ability to choose. Passengers can add the
best drivers to their list of ‘favorites’ based on their driving style, service
level, etc…If the driver on your favorites list is available again when you are looking for a ride, you can easily find them and hire them again.
On the second front, fees, the proceeds of all rides go back into the
community. The pool goes towards better services and expanding their
ride-sharing community.
On top of all this, both passengers and drivers have more opportunities
with DACSEE. Passengers who bring more passengers to the platform
are rewarded with tokens. Likewise, drivers who invite other drivers
receive the same. The drivers they invite must be successfully vetted by
their thorough background checks. Once this happens and the new
driver is hired, the referring driver receives tokens.
Tokens can then be converted into fiat currencies. In order to be rewarded with tokens, both passengers and drivers who invite friends to take a ride with DACSEE or drive for DACSEE have minimum criteria to meet. Every driver has a minimum trip to be completed daily, and every passenger has to take a
minimum trip weekly. This is to avoid both driver and passenger trying
to abuse the ecosystem by recruiting and not contributing. This part is a
model taken from the Proof of Work methodology where drivers and
passengers must still proof minimum contribution of effort into DACSEE
ecosystem.
DACSEE is one of the best examples of successful real-world
applications of blockchain technology. There are also many other
examples of successful blockchain projects across many industries.
Despite what news you hear about cryptocurrency markets, their
underlying blockchain technology will continue to provide exciting
advances that shake the modern world.
