The applications of blockchain technology are not just restricted to finance or popular cryptocurrencies. Its efficiency in maintaining transparency while at the same time securing the data and money makes it a suitable technology in various sectors.
Most industries consider it as a superior technology, especially for data storage and transfer. Therefore, it becomes quite important to understand the uses and significance of blockchain technology in different sectors, however, before that you need to understand what can blockchain technology does best.
What is the main purpose of Blockchain Technology?
Although there are multiple purposes for which the blockchain has been introduced, some are quite specific and common.
- There is a high level of transparency with blockchain technology, and it secures the data as well as other information against any third party.
- Blockchain can efficiently manage the identities and permit verifications or authentications, at the same time keeping the most confidential data safe.
- It can enable quick and error-free transactions.
- It plays a major role in the trade of virtual tokens or currencies.
Different Use Cases of Blockchain
Some of the popular use cases of blockchain technology in different industries such as commercial, financial, governmental, and many more have been outlined below.
Protection against money laundering
The high-end encryption provided by blockchain technology comes in significant use in case of money laundering. The recordkeeping feature further helps in the KYC or “Know Your Client“ procedure wherein the organization verifies the identity of different clients.
Nowadays there is an increase in fraudulent cases and a lack of proper records in several healthcare sectors. This can lead to major trust issues among the people. Blockchain technology can help in re-establishing this trust through appropriate storage of the data and quick identification of an individual or any threat.
Its main significance in the legal industry lies in the storage and validation of the data. All the records stored through blockchain technology can be accessed in a secured manner. To some extent, it also helps with certain legal issues such as legacy, crypto assets, and many more.
Blockchain technology can also be used to create smart contracts, or agreements wherein the intervention of the third party would not be necessary. Some of the prominent applications of blockchain smart contracts include copyright management, smart contracts in insurance, supply chain management, and many more. These contracts are not funded unless all the conditions have been met.
Real estate is all about a bunch of paper works, the blockchain technology can ease this job to a great extent. It keeps all the records secure and easily accessible. Furthermore, it ensures that there is direct communication between the client and the agent, and no intermediaries or negotiators are involved. Moreover, the smart contracts curated through this technology do not fund unless all the criteria have been met.
The banking industry today can utilize blockchain technology in a great way. With thousands of transactions taking place between the bank and the customers, hacking or cyber threats are common. Through the secured blockchain system, the banks can keep a record of their transactions. Moreover, the decentralization of the system ensures smooth and cost-effective transactions.
Transparency, security, decentralization, and many such phrases associated with blockchain technology make it an active weapon for cybersecurity. Being decentralized, none of the data stored in the blocks can be modified or accessed by any third party. There are no chances of failure when it comes to blockchain technology.
Government and Politics
Besides keeping an accurate record, blockchain solutions can also be utilized for reducing corruption or bureaucracy in distinct government agencies. It has a thorough verification and authentication feature to identify any kind of fraud. Furthermore, it can maintain security, transparency, and efficiency in different state tasks.
World of Art
NFTs or non-fungible tokens are one of the significant phrases when it comes to the art industry. NFTs have enabled artists to gain huge profits in the form of digital collectibles or cryptos. However, even here authentication of work or a document is essential and that’s where blockchain technology comes in. It helps in the authentication or verification process.
No one is unaware of the popularity of cryptocurrencies and most even consider it to be the future mode for currency and transactions. However, there should be a secure distribution of these digital currencies. It is also the reason why blockchain technology came into existence. Furthermore, it helps in keeping the track of the transactions while maintaining transparency and accuracy in the records as well as the distribution. Cryptocurrencies like bitcoin and Ethereum continue to be popular for the same reason.
Even the IoT is utilizing blockchain for distinct purposes such as the tracking of assets or supply chain management. It keeps a record of worldwide transactions and data.
After cryptocurrency had been recognized as a form of payment, a lot of blockchain games were introduced. Blockchain solutions can resolve many gaming issues such as gameplay imbalances, payment issues, economic manipulation of games, and many more. It allows an open-source and transparent network for gamers worldwide.
With the advancement in technology, even the education system has adapted to the changes. Conducting the major educational processes in the online mode involves a lot of work as well as verification. Blockchain technology keeps a record of the employees as well as the students. Thus, it can be accessed quickly in case of an emergency or requirement. It can instantly distribute the grades and notes among the institutions that are further stored as a record.
Once you understand the different aspects of the blockchain system there is no going back. Its distinctive features have led to its popularity and utilization in a majority of sectors. It ensures secure and authentic storage of data and can save major businesses from cyber threats or the complexities of keeping records. Introducing blockchain in your work would definitely bring in immense benefits, especially on the digital front.