The concept of blockchainwas first introduced as a mechanism for supporting the world’s first cryptocurrency, bitcoin. It has proven to be quite effective when it comes to supporting not just bitcoin, but plenty of other cryptocurrencies. However, this is not the only application of this technology. There are a number of other use cases where blockchain technology has been tried out and it has done wonders. Some of the major applications are highlighted as follows:
- Money transfers
As mentioned earlier, blockchain technology was first used for supporting bitcoin and the original concept remains an excellent application. It can be used for making money transfers, which are faster and less expensive than traditional money transfer solutions. This is particularly true in the case of cross-border transactions that are quite expensive and slow. Even in the modern financial system, it can take a few days for transactions between accounts to be processed, while blockchain transactions are executed within seconds, or minutes.
- Financial exchanges
Everyone has heard of cryptocurrency brokers and exchanges, but there are different types that exist. Decentralized crypto exchanges are the ones that use blockchain technology, which means you do not need to make deposits with a centralized authority. This allows people to enjoy greater security and control over their assets and transactions are less expensive and faster. While these blockchain-based exchanges are currently only being used for cryptocurrencies, they can also be used for traditional investments.
- Secure personal information
Storing your personal information, such as your name, date of birth, social security number, or any other sensitive information on a blockchain may sound risky. But, the fact is that it is more secure because it is not vulnerable to hacks. The technology can be used to secure access to information and grant permission to those who may require it. This can be quite useful in numerous industries, such as healthcare, finance, travel and education.
Blockchain technology can also come in handy for lenders, as they can use smart contracts for execution of collateralized loans. These smart contracts are created on the blockchain and are designed to be automatically triggered when certain conditions are met, such as a margin call, service payment, release of collateral, or a full loan repayment. Thus, this can make loan processing quite fast and less costly and lenders are able to offer better rates to their clients.
- Real estate
There has been a lot of talk in blockchain news about the use of this technology in the real estate industry. There is a ton of paperwork involved in real estate transactions, as ownership and financial information has to be verified and then titles and deeds have to be transferred to the new owners. With the use of blockchain technology for recording transactions, it becomes easier and safer to verify ownership and other details. This can save money, cut down paperwork and speed up the whole process
- Artist royalties
Blockchain technology can also be used for tracking film and music files that are distributed all over the internet, which ensures that the artists get paid for their work. The purpose of blockchain is to ensure that there are no two copies of one file and it only exists in one place, which can be extremely helpful in reducing piracy. Furthermore, blockchain can also be used to keep track of playbacks on music streaming services and smart contracts can be used for making payments, thereby ensuring that artists can get what they are owed.
Insurance providers and their clients can also benefit from the use of smart contracts created on the blockchain. All claims can be recorded on a blockchain, which ensures that no duplicate claims are made by a customer for the same event. Likewise, it also speeds up the process, which means that claimants do not have to wait for long to get the money they are owed as smart contracts exist.