When and where blockchain technology is applied?
When and where blockchain technology is applied and what are its benefits? Blockchain technology is an open database where a file is made up of blocks of data while each block is linked to the previous one, thus, forming a chain. Each block has data that includes transaction records, along with a record of when the block was edited or created. Notably, the blockchain is not controlled by any individual or entity. The data is distributed across several computers which means any user can keep a check on the entire chain from anywhere.
Meanwhile, anyone with the right cryptography keys is allowed to edit the chain. The decentralized way of storing and accessing data makes blockchain incredibly secure. It doesn’t expose a single point of entry for attackers.
How are organizations using blockchain technology?
The first use of blockchain technology was as a part of the cryptocurrency Bitcoin. Notably, Bitcoin was based on blockchain technology. However, the practical applications of the technology extended far beyond cryptocurrencies. It is now likely to impact several industries.
Let’s have a look at some of the examples:
Cutting out brokers
Several companies like Uber, Airbnb, and Expedia work as aggregators which are a centralized platform. They connect service providers with customers. The centralized aggregator sets their own terms and conditions and takes a commission for each transaction. Now, blockchain technology is being used to cut out the middleman in an order to create a secure and decentralized way for service providers and customers so that you can connect and transact safely and directly with no intervention.
Enhancing Healthcare
Blockchain provider SimplyVital Health has two blockchain products, designed to enhance healthcare management. These products include ConnectingCare and Health Nexus. ConnectingCare tracks the progress of patients who get discharged while Health Nexus provides decentralized blockchain patient records. Other than this, the startup company Gem is working with the Centre for Disease Control (CDC) to establish a blockchain to store disease outbreak data in order to increase the effectiveness of disaster relief.
Improving banking and transactions
The company Barclays has launched several blockchain initiatives to track financial transactions and fight against fraud. On the other hand, the Bank Hapoalim collaborated with Microsoft in order to create a blockchain to manage the bank guarantees. Likewise, Aeternity’s blockchain platform enables users to create smart contracts. These smart contracts become active after meeting certain conditions. This leads to the release of automated payments.
Smarter supply chains
In any business, it is important to understand the status and condition of each product on your supply chain. For consumers, provenance is becoming an important issue. Similarly, the DeBeers Company is planning to bring blockchain technology into use to trace diamonds throughout its journey from the mine to the end customer. This will help increase transparency and it will enable the customers to verify that the diamonds are free from any kind of conflict. On the other hand, Walmart is also taking advantage of blockchain technology to track the safety of farm produce.
Efficiencies in insurance
The nationwide insurance company has been using a blockchain-based technology named RiskBlock. It provides information related to proof-of-insurance with an aim to help law enforcement besides enabling the insurers to verify the insurance coverage in real-time. They can also make the claims process faster and even more efficient.
Notably, Blockchain-based smart contracts have the capability to change insurance claims by making sure that only valid claims get money. The blockchain network is a kind of technology that would find out if multiple claims would be filed for the same accident. Later, the payment is done automatically after the terms and conditions are completed for a satisfactory claim. The process doesn’t include any human intervention that helps in speeding up the resolution of claims.
Indeed, blockchain technology is still new and it has a long way to go to be considered even proximate to the mainstream. Still, these examples prove how blockchain technology is being used across industries to take advantage of the decentralized network.
Benefits of blockchain technology
While using blockchain technology, you can have a look at past records. While looking at a regular database, you get a snapshot of the updated data. Besides, the Blockchain also maintains a record of all the information that existed in the past.
Since the blockchain stores the data in a decentralized way, it makes the whole system secure – unlike a centralized database, there’s no single point of entry on the system. As a result, there is not much business for hackers left on the system. This way you can record transactions in an incredibly secure manner. Notably, there is no centralized control as the record is decentralized. It is replicated in the system in multiple places. Thus, there’s no need for a central administrator. This way you get to cut all the costs and infrastructure that come along with it.
Where is blockchain technology applied?
Decentralized blockchain technology is growing rapidly and has been expanding across industries. In the meanwhile, below is the list of the areas where blockchain technology can be applied.
– Retail
– Finance
– Banking
– E-commerce
– Entertainment
– Sports
– Real Estate
– Energy
– Insurance
– Healthcare
– Services
– Government
– Automobiles
When might blockchain technology be used?
Blockchain technology has the potential to transform businesses. The blockchain can be used when you want to manage digital relationships or keep your decentralized data secured. Blockchain can be an ideal solution in cases where you want to keep a transparent record of assets. These long-term assets can be property or land rights.
In any industry, a middleman comes with a lot of costs and even consumes a lot of time. In such cases, Blockchain comes out for a rescue. You can transact directly using a blockchain that too in a feasible manner. Besides, it is safe and consistent.
The traditional database might be a good option in order to record the simple transactions between two parties. However, when things get complicated, it’s the blockchain that can help you out. The blockchain can reduce bottlenecks and maintain more transparency in relationships. Additionally, the security of a decentralized system makes it even ideal for transactions in general.
Blockchain is indeed a better option because it is safer to record the activity and maintain data and even keep the past record. The data is protected and it can’t be corrupted by anyone. It can’t be accidentally deleted. Therefore, you can take benefit from both past records and real-time data.
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