Blockchain technology has proven to be one of the most innovative tech solutions in the world of finance. It allows for a decentralized ledger used to keep track of transactions and therefore it can be used to serve as a currency that’s not issued by a central bank.
In this article, we’ll discuss a few of the potential uses of blockchain technology in different industries. So in this article, we’ll discuss a few of the potential uses of blockchain technology in different industries.me of these are already in use, while others are still at an early stage and it will take a while until they become widely used.
Money Transfer
Money transfer is the most important application for blockchain technology and it’s what’s behind the cryptocurrency as a concept. Transfers made using blockchain are instant and easy to trace in case there’s an error of some sort. Most importantly, there’s no bank needed when making this transfer.
Most cryptocurrency users appreciate this feature more than any other. It provides the chance to make online transfers without leaving an online trail. Now when online privacy is more important than ever, blockchain cryptocurrencies will become more valuable.
Financial Exchanges
Over the years a lot of financial exchanges that deal with cryptocurrencies have popped up. These provide the same service as traditional exchanges. Selling and buying crypto is similar to a foreign currency exchange. The biggest difference is that an exchange working based on blockchain technology is as decentralized as cryptocurrencies.
At this point, blockchain exchanges mostly work with cryptocurrencies, but the concept can be applied to any exchange. Being able to purchase assets without providing personal information is an attractive proposition to many buyers. However, as the technology becomes more widely used, chances are that it will also become more regulated.
Online Crypto Games
Blockchain has many applications suitable for online crypto games. It’s easy to find the best Bitcoin slots that have already started allowing payments in crypto only. They rely on innovative technology to provide safe and instant payments to their players. Blockchain allows the crypto games to put the terms into the code itself making the payments instant as soon as the game is won.
Blockchain also provides a more transparent and fair gaming experience. Players can use the technology to make sure that the odds are fair. Blockchain uses open-source code that allows anyone to change it and observe the changes.
Lending
As soon as cryptocurrencies we recognized as a payment method, lending services emerged. These work the same as the lending made in traditional cryptocurrencies. Those who lend crypto earn an interest set at the start of the contract. Those who borrow are obligated to pay a monthly installment including interest.
This isn’t as sustainable as other uses we mentioned as the value of Bitcoin changes over time and is based on market forces. This means that the payments you get at the end may be worth less than when the contract was first started. However, this is also the case with fiat currency loans.
Insurance
Insurance contracts are quite complicated and they take into account a lot of different circumstances in which a payment needs to be made. This makes the industry a great choice for implementing blockchain. Using blockchain to set up insurance policies allows the parties to have a clear insight into all the terms involved.
Blockchain also automates payments, therefore there can’t be a dispute about whether a payment should be made. Once the conditions are met, the payment is made automatically. Such a setup can work on life, health, or property insurance.
Real Estate
Real Estate policies are notoriously complicated and require a lot of paperwork. Blockchain is now used in the industry to automate this process and make the payments immutable. The transactions are also more secure this way since the terms of the contract are entered into the blockchain code.
The transactions made with blockchain are also faster and more seamless. This means a lot in a competitive and heavily regulated market such as real estate. The process is also more transparent since the same code is available to all parties that take part in a real estate sale including the government.
Government Benefits
Government provides a variety of different benefits to individuals and businesses. All of them require a lot of paperwork and administration. A large government bureaucracy is also inefficient and the payments are often late. The use of blockchain to make these payments solves all of the mentioned issues.
The documents needed to get the benefits are provided online. The payments are automated to start as soon as the agreed-upon conditions are met. The code used for blockchain is also transparent and all parties involved know what their obligations are and how to qualify for the benefits.
Royalties
Blockchain technology is already used when it comes to setting up royalty contracts. Tracking the rights for distributing music and film can be a complicated business. There are many parties involved in producing a piece of music or a film. A variety of different authors, actors, and producers, as well as streaming services, and traditional media organizations all share rights to a certain piece of media, and dividing the earnings requires complex legal work.
All of this is automated and made transparent when done via blockchain technology. Many large streaming and production companies are already using the option and chances are that more will follow suit.
Logistics and Supply Chain
Logistics and supply chain management is one of the most important industries for the shipping and commerce industry. Almost every product imaginable requires complex logistics and supply chain management since the spare parts and materials are often shipped across the globe. The same goes for actually selling and delivering the product to customers wherever there’s a need for it.
Blockchain makes the communication between the parties easier and it creates a ledger that everyone can keep track of. That way there’s much less chance that the load will get lost or stolen. In the long run, the use of blockchain saves on shrinkage costs.
Storing Data
Secure data storage is one of the most important concerns for everyone keeping some of their data online. There are countless applications for securely storing data and blockchain can play a big role in the process. Making transactions with blockchain requires the use of a personal key, which the users can store online or on a mobile device not connected to the internet.
The use of blockchain private keys presents an important safety measure that can prevent unwanted parties from using the data that you want stored. Now, when hacking is more sophisticated than ever these storage safety methods are becoming even more useful.
To Sum Up
Blockchain has proven to be an innovative technology and it already has numerous applications in different industries. The technology allows for private and fast online transactions and it can be used to create an immutable ledger. Such features have applications in industries that require complex contracts with many different parties involved.
More and more institutions both private and government-run have accepted blockchain and cryptocurrencies as valid payment methods. This means there’s more regulation in the industry than there was at first. It’s a disappointment for some users who enjoyed the libertarian side of the industry. But it also opens room for more usage cases, as there are more rules and order in the field.
