Technology is dynamically growing into a reliable tool every day. With the advances in technology, you can do a lot in the Internet. In the recent past, people would only send emails and documents, but modern technology is awash with innovations that have broken the conventional ways of doing things. The financial sector is gradually embracing the digital currencies, and their popularity is currently causing waves across the globe. The launch of cryptocurrencies like the Bitcoin has changed the investor mindset. Most people are now investing in crypto because of its overall returns. The cryptocurrencies function on a peer-to-peer chain commonly known as the blockchain technology.
Blockchain technology has changed the way how business is done, and this is a concise review of the most influential blockchain technology applications. The blockchain is a decentralized ledger which is digitally distributed, and it’s responsible for logging transactions without the need for an intermediary. Intermediaries such as banks are exempted from transactions ensuring quick and error-free transmission. Blockchain was developed to eliminate third parties, reduce transaction fees and make the procedure error-free.
It operates on a decentralized system with no governing entity making each transaction transparent. These blockchains have end-to-end encryption making your assets safe and you can comfortably invest within the confines of your home. With the changing dynamics, several industries are adopting the technology by innovating blockchain applications that make life easier. From hotels, hospitals, banks, and your day to day transactions, blockchain uses advanced technology to transform lives.
There are several industries where you can experience the uses of blockchain technology. Below are some of the most influential blockchain based applications:
Blockchain technology is cost-effective, cheap, and transparent reducing the hustles of doing business. Unlike the traditional systems which are prone to errors, slow, and very cumbersome blockchain technology makes doing business effortlessly. Blockchain technology application will save time and money. Financial institutions have developed innovation such as smart bonds and contracts. Smart bonds help pay the bondholders when all the condition agreed upon are met while smart contracts are digital contracts that are executed when the set terms are met. Blockchain technology makes business uncomplicated and straightforward because it’s self-maintaining and executing.
Cross-border businesses involving assets are not only risky but also quite expensive. All the parties involved in the asset transaction have to keep personal records of their transaction which creates differences and mistakes leading to disagreements. However, with the blockchain technology, the chances of errors are minimal as the information is encrypted. The ledger makes the process simple and reduces the need for brokers, custodians, and other intermediaries. Unlike in the traditional method, blockchain technology uses encryption to store information ensuring safety and eliminating the need for intermediaries. Blockchain apps make the management and trading of assets flawless and reduce the risk.
Blockchain provides a risk-free and transparent system when it comes to managing insurance claims. Processing insurance claims can be tedious as you wade through numerous papers and data sources. Using blockchain technology, the ownership of the assets is encrypted and that makes it easier to access the information you require as you process the claims. The technology makes insurance claim processing error-free and more efficient.
Money takes days to move around the world. The traditional methods of money transfer are expensive, error-prone and often result in money laundering. With the advent of blockchain companies that provide end to end remittance services, it's easier to make payments across the globe quickly and without any errors. Leading banks have already begun merging blockchain to payment applications making it possible to make international transfers that clear in 24 hours.
Documents for properties such as cars, real estate properties, patents, and share certificates should have a smart technology embedded on them. The registration details can be stored on the blockchain ledger with any other details about the properties. The owner of the properties is then given keys to be able to access the documents. When changing the ownership of the property, the owners use the smart keys to facilitate the change of ownership once the agreement terms have been met. The ledger allows the decentralization of the records and makes the management of property rights to be easy. In case you lose your smart key the information stored is used to generate a new key.
Using the smart blockchain technology reduces fraud, mediation fees and situations where more than two people lay a claim on a property. Blockchain makes property trading more transparent and efficient. By taking the paperwork out of the equation that will reduce confusion and reduce fraud. Using the blockchain technology, it's clear who owns a property.
There are several ways of the influence of the blockchain on the management of the property in a beneficial way:
Hard money lenders lend money to people with poor credit history and then claim their property as collateral. The unconventional money lenders are known to charge exorbitant interest rates that range from 2-10%. The high-interest rates will lead a borrower to fall into bankruptcy and end up losing their home. Blockchain potential applications will help you get a loan using the smart property. The technology removes the need for the various documents and the need for credit history. Properties are encoded in the blockchain technology and anyone can view them. That makes it easier for you to get a loan from genuine money lenders.
Blockchain helps the individuals to replace lost protocols. If you lose your car keys, they can only be activated using the right protocol. Similarly, your smartphone only works when you key in the right PIN. The blockchain technology assists to overcome the primitive methods of securing your property. As a miner, you can replace any lost protocol.
When an object can be switched on and off and connects to the Internet, it becomes an Internet of things. By connecting to the Internet, the devices become smarter. In the next ten years, there will be more than 10 million connected devices. When you connect your printer to the internet, and the cartridge is low, your printer will order for a new cartridge from your favorite vendor.
Clocks will change your dinner time and any other device connected will become smart. The government can use the internet of things to offer better services to its citizens. They ensure that they provide cleaner environments, improve service delivery and provide efficient energy. Also, the development of smart cities will ensure that the lives of the citizens are better. With blockchain technology, the internet of things will become more secure. With millions and millions of devices connected security is paramount.
Blockchain technology ensures that information is released to trusted persons responsible for security. In that way, companies and governments can protect their information and secure their properties. Blockchain ledger ensures that information is released to trusted parties by providing a management platform.
The following are several examples of blockchain technology in relation to the Internet of things:
As a supplier of materials, it’s essential that you know where your products are at any particular time. Sensors will enable you to trace your products by giving you information on the condition and location of the products. Blockchain stores will help you manage and protect information on the current location of your goods. Blockchain-based applications will help keep track of medication. The high number of counterfeit medication makes getting the right medication hard. With blockchain application, it becomes easy to track medication using batch and serial numbers from the warehouse to the retailers.
Smart contracts are self-executing contracts which are embedded with a code which once it’s fulfilled the contracts are executed. The smart contracts which are embedded with specific codes that are applicable in several areas. All the parties are expected to follow through with their terms. The blockchain smart contracts make that there are no third parties and ensure that the parties know the contract terms. The contracts are automatically executed once the conditions are met. Smart contracts can be in insurance, property transfers; financial institutions can also use smart contracts.
Below are the blockchain examples of smart contracts:
With blockchain technology, health records can be encrypted and stored giving access to the permitted individuals. With the technology, it becomes easier to protect the privacy of the patient as only those with the key can access patient records. Research can also be secured using blockchain applications. Treatments receipts can also be stored using blockchain and then sent to insurers. The blockchain ledger can also be used in supervising drugs dispatch, ensuring compliance with regulations and management of healthcare supplies.
One of the major concerns in the music industry is copyright, royalty, distribution, and transparency. With blockchain, a comprehensive and decentralized database of music rights can be created and ensure that the rightful owner of the music is known and paid accordingly. Blockchains will help to manage the copyright and ensure that the music creator gets their fair share of earnings. The technology will also help in the transparent distribution of royalties to music owners and content creators. Based on the agreement music owners are paid with digital currencies.
Over time, the credibility of elections is questioned as destabilizing a country. Hackers may attempt to sway the votes by rigging the electoral system in favor of one candidate. Individuals can confirm that their votes were counted and that there was no rigging. The blockchain ledger will ensure that there is no rigging as the votes are encrypted. The immutable applications of blockchain technology will ensure that rigging doesn’t occur and ensure that your vote counts. The blockchain ledger will ensure the credibility of the electoral system. That will also save the government time and money. With the smart contract, the electorates can be sure that they fairly elect leaders. Using blockchain, the elected person specifies their agenda and the public can keep watch and ensure that the promise has been kept.
Other uses for blockchain is to provide an open source of information for citizens. The information available will help farmers know what is in demand; bring to the forefront any fraudulent deals and any other important information. The information will be available to the citizens whenever is needed.
Find some examples of blockchain technology use in government below:
The blockchain technology provides a platform for companies and other organizations to manage their resources. Different groups exchange information on a global scale and in a less risky manner.
Gun control and tracking are crucial to any government. Blockchain will help to create a registry that can’t be changed easily. With blockchain, a transparent register can be created and used to help track guns and other weapons. The applications of blockchain technology will also help to keep track of any weapon sold.
When you purchase merchandise online, some companies sell your identity to advertisers. Blockchain will prevent this by creating a protected data point where information is encrypted. The technology will ensure that the only information available is relevant for that particular purchase. Blockchain will ensure that your information is protected from spammers. Blockchain makes tracking digital identity easy and secure.
Below are some of the examples of how blockchain helps to protect your identity:
Using blockchain, you take a picture of yourself and it’s stamped with a private and a public key which is encrypted. The passport information is stored and given an address with the public, and blockchain user then confirm it.
Your documents such as a wedding, birth, and death certificates are important. They open you up to many possibilities and it's important that they are secure. With blockchain, you can encrypt your documents making them more secure.
With blockchain ID you don’t need to carry your driver's license, social security cards, national identification, and any other identification documents. Blockchain ID will help you to access a range of services without carrying your identification around and risking of losing the documents.
The following are network application examples of this technology:
Blockchains will ensure that the money you donate gets to the intended parties. Charities that use blockchain technology gain trust quickly through smart contracts. The philanthropes are able to tell whether their money has been used properly ensuring there are transparency and security. Bitcoin-based charities have already established trust using smart contracts
Blockchain will make communication easier, faster, and more reliable. Automated communications that are based on pre-built algorithms are safer and faster. Blockchain allows communication that is bi-directional and ensures that the process occurs more frequently. With block chains, communication is enhanced to become more reliable.
When data is encrypted using advanced cryptography, it’s impossible to change it. Using blockchains data is encrypted minimizing chances of unauthorized changes and hacking. Without blockchains, data will be susceptible to loss and changes. With prevalent hacking blockchain will ensure that your data is safe.
Blockchain can be used to create a token-based system that rewards client and stores the tokens. That will ensure that clients keep coming back for more good reducing fraud and eliminating paperwork associated with card-based loyalty based programs.
Here are some more ways in which blockchain may be applied:
Blockchain can be used as a marketplace where companies can share data. The blockchain technology can be used as an intermediary to help share the data and improve the companies. The information will help companies place their goods and services strategically in the market.
With blockchain, it's easy to trace the source of contamination on food as the technology helps to monitor the food from source till it gets to the consumer. The immutable nature of the technology will help to keep food secure and ensure the timely delivery of food products.
Backing up your data using blockchain will prevent your data from loss and hackers. Blockchain decentralized storage service provides more security and reduces dependence on a single storage provider. Unlike the traditional centralized storage services with blockchain you don’t have to place all your online assets in one place. Additionally, over the next few years, blockchain storage will be the way of how information is backed up.
Don’t think of such a wide application of blockchain as only a tribute to innovation; in fact, it offers a realm of advantages that any organization may enjoy:
Companies use blockchain to record their sales and in that way, it’s clear to their governments how much they are making and that the taxes are paid. Companies are able to demonstrate that all the tax laws have been followed.
Applications for blockchain can be used to bolster the rights of workers around the globe. Using a smart contract, the rights of workers can be safeguarded. Blockchain technology will ensure that contracts are enforced, labor policies are followed, and the rights of workers are observed.
The uses for blockchain technology are efficient in transactions, which are settled and validated quickly eliminating the waiting time investors have to wait to sell and access their funds. The technology could replace other trading platforms due to the convenience and speed of executing transactions.
Blockchain will help energy companies settle future trades fast and also help them manage their energy resources and ensure compliance.
The blockchain technology will give your technicians or mechanic access to your car or house respectively. The digital key will enable you to give service technicians access to your house. Without the digital key, the technicians will not be able to access your house ensuring the safety and security of your home.
Blockchain will work only when there are strict ethical standards that individuals can follow. It's essential to ensure that there are ethical rules in line for guidance. The standards are critical tools that help improve businesses, conduct fair trade, and ensure that the global economy is operating democratically.