Tuesday, January 31, 2023

15 Applications Of Blockchain Technology In Real Life

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Blockchain Technology is a digital distributed ledger that stores data cryptographically and can be programmed to record transactions between two parties. It’s been such a big hit in the financial world that blockchain has various applications in real-time, from tracking carbon credits to coordinating the digitization of assets.

The first use for blockchain was bitcoin, which remains the original decentralized cryptocurrency that introduced this technology to the world with its open-source code back in 2009.

This digital currency has grown significantly, with its market cap rising from about $4.3 billion at the beginning of 2017 to approximately $185 billion today. This is a big deal for blockchain technology because for bitcoin to be successful, it needed a decentralized ledger system that could handle large numbers of transactions and secure data on a peer-to-peer basis.

And while other crypto coins out there replicate bitcoin’s model and design, they don’t have the same level of value or following as bitcoin. In addition, an ever-increasing number of other cryptocurrencies have popped up over the years, making their use very common nowadays.

Let us look at the Applications of Blockchain in Real life.

To Transfer Money 

As we have learned, blockchain is much more than a new way to send funds. Due to its decentralized nature, it is a revolutionary digital ledger technology that has created suspicion among business and banking leaders alike.

However, some uses of the blockchain system are more beneficial than others; one use, in particular, is the transfer of funds within the financial sector.

Current payment systems often provide high transaction fees and require large amounts of institution involvement to complete transactions; this is where blockchain comes in with its low costs and reduced need for institutions in transfer processes.

The remittances market is valued at $582 billion annually and is expected to reach $642 billion by 2022. Blockchain has already been used in the successful transfer of funds across national borders, as well as across other payment models such as mobile payments.

Blockchain technology can create new credit card systems that remove intermediaries from the process of credit provision. Smart contracts can be programmed to pay interest rates or insurance premiums based on pre-determined variables, circumventing the need for institutions entirely.

Smart Contracts 

 A smart contract is a computer program with the power to manage agreements between two or more parties securely, digitally, automatically, enforceably, transparently, and autonomously.

A smart contract can manage financial transactions, property rights, or even legal contracts. The most well-known smart contracts are used for Bitcoin, but Ethereum has a much broader scope in front of them. 

Ethereum has a much broader scope for intelligent contracts because it supports Turing-complete smart contract code. An Ethereum programmer can write a program to manage any imaginable contract, including financial transactions, legal agreements, insurance policies, etc. 

Indeed, smart contracts are being applied to automate the entire spectrum of international law. Smart contracts are not just used for transferring currency.

They can also be used to carry and transfer other types of value, like stocks, bonds, voting rights, or even access to a car or home. This reduces the need for trust in contracts by making them executory and self-executing. This means that smart contracts are executed when certain conditions are met. 

The biggest challenge facing smart contracts is not technical but political. Without proper legal frameworks and regulations, people will not adopt them. Many consider smart contracts an “alternative” to law and legal constructs.

To Manage Assets 

Even though it is still early in the adoption curve, it’s clear that blockchain has potential in asset management. From protecting against counterfeiting to making transactions faster and more transparent, many benefits could be realized if asset managers were to test out these new technologies.

Here are some of the potential benefits:

It has Increased Transparency, Security, and Speed of Transactions. The ultimate goal is to use blockchain in asset management to increase transparency without sacrificing security.

The blockchain provides all actors with a clear view of the chain, thus reducing opportunities for fraud or tampering. In addition, an immutable ledger would solve issues such as data corruption, thus ensuring that auditors can work off accurate documents.

Combined, these two elements would significantly improve efficiency and allow faster transactions at lower costs.

Blockchain ledger could provide ownership information on company shares and proof of the availability of capital from end investors. This could enable companies to improve their access to capital, increasing the funds available and leverage for growth.

At the same time, blockchain could enable companies and investors to create a more transparent bond market by using smart contracts allowing for automatic collateral transfers between counterparties.

This new form of collateral would make it easier for companies to secure funding and reduce legal costs associated with borrowing.

Securitization of Assets is one of the significant benefits of using Blockchain technology. Blockchain ledger can be used to secure assets such as real estate records, loans, or any other financial instrument that requires traceability.

The ledger stores information regarding a given asset which can be used to prove authenticity, ownership, and storage.

In Healthcare 

With the advent of the cryptocurrency industry, it’s no surprise that blockchain technology can be applied to many different industries. Blockchain technology has been identified as especially beneficial to fields like healthcare because it provides transparency, reduces inefficiencies, and ensures security.

When blockchain is implemented into healthcare management systems, it can significantly improve efficiency and allow stakeholders like patients and providers to understand clinical data better.

Many healthcare companies, organizations, and initiatives are already implementing blockchain technology. Various healthcare-specific decentralized personal data platforms aim to empower patients with control over their health data.

Using these platforms, patients can request to securely share all of their relevant medical, behavioral and other health records with any number of stakeholders in an effortless way using smart contracts.

These platforms also enable providers and researchers to request access to specific data from patients directly without having to go through intermediaries such as insurance companies or hospitals.

Other applications of blockchain in healthcare:

• Direct-to-consumer platform allows doctors and patients to discuss healthcare options and receive immediate feedback.

•Personal health record blockchain where data is stored locally by patients themselves but could be shared with any number of healthcare providers.

• An Augmented Reality application where patient data can be used in real-time in the clinic to offer better care.

It is necessary to develop ways to store health data on a blockchain. This would allow patients to control who can see their healthcare data and use it for research purposes.

The information could be used for personalized medicine, virtual doctor visit technology, wellness programs, and insurance payments.

NFTs 

A blockchain is a decentralized digital ledger that records transactions or events in a series of lines called blocks. Where digital currencies such as Bitcoin use the blockchain to confirm transactions, NFTs also use it to manage ownership and provide provenance.

There are many advantages to using a blockchain, including reducing fraud and improving transparency, but they require specific strategies to maintain security.

The technology of non-fungible tokens has the potential to revolutionize more than just gaming. NFTs can be applied to real estate, and how they can encourage liquidity and transparency in secondary markets where there are highly illiquid assets like property or art.

Cryptocurrency 

Blockchain technology allows digital information to be distributed but not copied; as it is spread across the internet and available to many people at once, blockchain technology avoids a single point of failure.

It also enables vital pieces of data or currency to be tracked without being copied or falsified. Blockchain was developed for Bitcoin transactions – using Bitcoins is one way that the currency can be transferred from person to person over the network.

While Bitcoin is currently accepted internationally as a means of payment, it is not used much in day-to-day transactions because relatively few merchants accept it yet, and because transaction fees can become high, making everyday use impractical.

Blockchain technology could bring cryptocurrencies closer to the general public and make them sound like a common medium of exchange. So far, Bitcoin has been very volatile, it is still not widely accepted, and some experts claim that it might never achieve enough acceptance to become a viable currency.

However, many other experts are hopeful that the technology will mature over time and allow cryptocurrency transactions to become more cost-effective.

There are several blockchain companies in existence that are working on real-world applications for the technology. One such company, Ripple, has created a network that can be used to transfer currency in a peer-to-peer network. In this network, there is no central authority to govern the system. Instead, the participants agree to its rules.

Internet Of Things 

Blockchain technology can be implemented on any network and has been famously applied to the Internet of Things (IoT) to improve connectivity.

First, blockchain improves security and accuracy. With traditional RFID-based technologies, it is impossible to know if an item was purchased or not, which means a person would not be able to support their purchase with authorities.

However, with a blockchain-supported system, every transaction is verifiable upon entry into the ledger because each block contains a timestamp and details about the transfer of value between two parties, like how much they paid for something or where they purchased it from.

Second, blockchain technology grants permission for the device to connect. The user grants this permission, and the device can be disconnected if it’s not performing as expected.

To make things more secure, each connected device has a unique identifier and a history of functionality, which adds to its overall credibility when interacting with other devices on the network. Information about devices is added to blockchain ledgers as soon as they connect with a network.

Third, smart contracts are being developed for IoT networks. These digital contracts have already been verified in blockchain ledgers. They can be replicated for multiple transactions or interactions on a blockchain-supported device or between two devices in an IoT-based system.

Fourth, blockchain solutions will grant access to the data generated by connected devices. This is becoming important as more people are concerned with privacy rights when sharing information with third parties. 

Royalty And Copyright Protection 

Blockchain can also be applied to protect Intellectual property rights (IPR). The database, powered by blockchain technology, will have many uses beyond music and could be used to track any digital file.

IPR protection through blockchain could have a wide range of applications, including the music industry, where blockchain technology is already being used to protect Copyright.

It can be tested on other sectors that suffer from rampant counterfeit goods, such as medicines and luxury goods, thanks to the Ethereum platform. 

Notary Service 

 Digitalization has already taken down many industries like print media, video rentals, taxis, etc. Notaries are next on that list of sectors that this technology will abolish.

A blockchain-based digital notary is a new technology that allows anyone to create and timestamp documents without the permission of a centralized institution like a bank.

The underlying technology is called the Ethereum blockchain and consists of all the records of what took place. The document you create and upload on the network could be about anything, like a newspaper article.

As soon as you upload that article to your blockchain-based notary, an immutable log of its facts will be stored in all copies of that record across the entire network. A timestamp within the tag will prove that the document was made at a specific time in history.

Each record copy will also confirm that it was uploaded by an entity using a cryptographic public key associated with their identity. This can be used to verify that there are no two nodes in a distributed ledger system with two different versions of a requested document.

Voting 

The traditional voting system is rigged and corrupted. The use of blockchain in voting may lead to a fair voting system. Blockchain voting is the solution for changing the controversy in modern society.

Blockchain Voting is a decentralized voting system that can be used in any election. It can also be used in financial institutions and legal sectors. The help of blockchain technology carries out the process.

The result is saved and stored on the blockchain. Blockchain voting provides a transparent and fair voting process that gives absolute power to the voter, who can decide when, how, and where to cast their vote. There are several reasons for blockchain implementation into voting systems.

Blockchain allows all people to vote through the internet. Blockchain allows knowing the most number of people on the earth and their opinions. All votes are strictly confidential and secure.

Votes can be counted through blockchain technology-based applications. Blockchain voting provides transparency and verifiability, which is impossible in a traditional sandbox voting system.

There is no interference from any external institution or leader during the voting process; hence there is no manipulation or alteration. Implementing a blockchain voting system will enable more citizens to participate in the election process, reducing voter suppression and establishing transparency that can only lead to more accountability for elected officials and government workers.

To Manage Supply Chain

A Blockchain is described as a distributed ledger that can store any amount of data in a tamper-proof, secure, and unalterable way. This means organizations can share records without needing a trusted intermediary, such as a bank or government, who will typically charge for their services.

The most common type of blockchain is designed to ‘digitalize’ the transaction process by chronologically recording each individual step in an exhaustive set of data blocks on the chain.

These transactions are verified by miners, who are rewarded with new coins when they complete this process on the network, incentivizing them to do so, which sets an immutable record that cannot be altered.

Blockchain Technology can be used at each supply chain step to simplify complex processes and record all transactions. Here are a few potential use cases of Blockchain Technology in Supply Chain Management:

  1. Production Suppliers: Tracking raw materials while being transported, stored, and utilized in different stages of production, can help improve efficiency and increase the safety of working environments, as well as prevent fraudulent activities/logistics fraudulent activities. In addition, Blockchain technology can also be used for tracking hazardous materials such as heavy metals, especially during transportation between suppliers and processing facilities.
  2. Raw Material Suppliers: Using Blockchain Technology, raw material suppliers can gain a more transparent view of the entire supply chain to improve their productivity and keep better track of inventory.
  3. Production Processors: The assembly lines used in production can be automated with Blockchain technology to improve efficiency by giving employees real-time workload data and prevent over-production, along with many other potential uses.
  4. End-Users: By incorporating Blockchain Technology into the end user’s point of sale system, retailers can provide more transparency and control regarding where their products have been sourced from in a way that is easily verifiable and impossible to alter.

Real Estate 

Blockchain is an undeniably exciting technology with applications beyond just financial transactions. Its immutable ledger keeps track of every transaction from start to finish and reduces reliance on third parties that may or may not be trustworthy, such as banks, governments, and brokers.

With its potential for driving efficiency and cutting out unnecessary intermediaries, blockchain is having a moment in the industry — so much so that some real estate brokerages have even begun to offer properties with their blockchain-backed property ownership records.

Here are some ways blockchain is being used in the real estate industry:

  1. Blockchain-backed property ownership records: Aside from reducing reliance on previously mentioned third parties, one of the most significant advantages of a blockchain-secured property record is that it can be publically accessible to anyone with an internet connection. Thus, documents such as escrow statements and title transfers can be accessible to all those involved in a real estate transaction. This will vastly improve transparency, efficiency, and security for clients and sellers by removing intermediaries from the equation — i.e., lawyers, title companies, brokers, and banks.
  2. Encryption: Since all transactions are recorded on the blockchain, it’s possible to encrypt sensitive information that would otherwise be available to anyone with access to the internet and blockchain. For example, one property owner would be able to encrypt information about their property before sharing it with another party involved in the transaction. This means parties can conduct business knowing nothing about each other’s financial or property records exists, increasing security and decreasing the spread of information.
  3. Smart contracts: Intelligent contracts are transactions that execute automatically when certain conditions are met. In the real estate industry, these are most often used to transfer property ownership securely and efficiently. For example, a smart contract could ensure payment is received only after the title has been transferred successfully if you’re selling your property. Intelligent contracts mean no more back and forth between sellers or buyers and their brokers over deciding when or how much money to transfer each time paperwork is signed.
  4. Deedcoin: Deedcoin is a secure blockchain-based platform for real estate transactions that claims to be faster and cheaper than traditional methods of transferring property ownership, registration or sales contracts through a private blockchain.

Cybersecurity

The use of blockchain can help to solve many problems in the cyber security industry. One of the biggest problems that cybersecurity faces are the “Sator square problem.” This is when a hacker enters one piece of data onto a server and infiltrates various networks, exposing many private and sensitive documents.

There are also currently many software vulnerabilities that hackers exploit to enter organizations, so one thing blockchain can do is prevent these by issuing all programs through the blockchain network.

Another way blockchain could be used in cybersecurity is by making it as easy as possible to detect attacks while they’re happening on your network. One way this could be done is by using a digital signature to see if someone has illegally accessed or modified information.

Likewise, blockchain technology could also be used to create secure applications and contracts for those who would begin using cryptocurrencies in the cybersecurity industry.

There is even the potential for blockchain technology to be used for the cybersecurity industry’s secure data storage. One reason current data storage methods are not so safe is that there are many different ways to access them. Blockchain will make it possible to store your data in one place and allow it to be accessed from any single device with an Internet connection.

Data Storage 

a blockchain can store sensitive information like credit card transactions, bank statements, and onboarding agreements. Meanwhile, any time a deposit is made or a loan taken out, that transaction can also be added to the blockchain- all with complete transparency. No one else would need access to this information; it would be kept on an independent network under its participants’ control.

And the reason blockchain technology makes sense for such a massive amount of data and data storage is the same reason it’s so valid for cash. It’s tamper-proof and can’t be hacked.

Even if you gain unauthorized access to a single block in this distributed ledger, you can’t modify its contents- instead, you would lose all access to all of your data in that particular file.

By committing data to an immutable blockchain and ensuring only authorized participants can read that information, we can finally store sensitive information in a way that isn’t vulnerable to hacking.

Conclusion

In the past, transferring money from one account to another was too tricky. With blockchain technology, that’s as simple as sending an email. Blockchains make us more independent from banks and other institutions by allowing individuals to create their virtual currencies backed by nothing but pure demand for them.

They are also responsible for innovations like Bitcoin and Ethereum, two successful virtual currencies that have changed the way we think about money, in general. We used to rely on material things like paper bills or gold coins if we wanted people to trust in our worth or product. But now, with blockchains, there is a new refuge of trust in these virtual assets that are purely digital and incorruptible.

You can quickly obtain a digital currency that is entirely decentralized and decentralized. These allow us to track every event of our money as it moves through the system and enable people to share their ideas and dreams about them at any given time. But what are the best ways to use these private currencies?

You have read about different applications of blockchain technology but are you familiar with the “Different Types Of Blockchain Technology“?

Mark Davis
Mark Davis
Mark Davis, blockchain and crypto content writer, experienced in creating informative and engaging content. Background in finance, economics, and tech. Aim to be accurate, objective, and thorough. Capable of writing in various styles, and simplifying complex topics for different audiences.

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