The technological breakthrough that is blockchain has been around for a while. Small and large businesses, corporates, and governments leverage decentralized innovation to streamline service delivery. Reliable statistics show that the global blockchain technology market value is expected to rise to $1,235.71 billion in 2030 from $5.85 billion in 2021. Despite the recorded and projected significant growth in the blockchain industry, many people still need help wrapping their heads around blockchain technology and understanding the top blockchain use cases.
The most familiar aspect of the blockchain has been cryptocurrency and, in this matter, bitcoin. Unknown to many, there is more to blockchain than meets the eye, and cryptocurrency is just the tip of the iceberg. It is crucial to remember that blockchain technology is a broad subject that would take someone ample time to understand, so don’t be hard on yourself. Besides reading informational guides like this one, you can also benefit from the blockchain experts’ point of view by contacting a blockchain consulting firm. Blockchain experts are instrumental in advising you on the best blockchain solutions for your business or investment purposes. This guide will help you grasp the blockchain concept and dive deep into the different sectors it has transformed for the better.
What is Blockchain and What Are Its Applications?
A blockchain is a network or connection of blocks or nodes in a decentralized ledger, each consisting of a copy of a data set that remains consistent in the entire chain. Picture it like this – a user initiates a transaction prompting all the nodes in the network to respond by either validating or denying the transaction depending on how the algorithm has been trained to respond to requests. If the user request is approved, the transaction is recorded in the decentralized ledger, completing the transaction.
Blockchain technology stands out in facilitating secure transactions because one has to manipulate the entire network, which is hard, to compromise the user accounts and steal funds. The decentralized nature of blockchain dictates that all operations in a network run independently without the involvement of a third party. Armed with the idea of how blockchain works, it’s time to learn how it has changed how things are done in different sectors.
There is a long list of blockchain applications in the modern-day world that is difficult to exhaust in one reading. However, these eight blockchain use cases will help you get an idea of how technology is played a part in modernizing operations in different industries, so let’s get started:
- Decentralized Autonomous Organizations
DAOs are organizations operating on blockchain where all the members make decisions collectively without conforming to central management. This means that decision-making in DAOs is open to all and not limited to a few members. Decisions are approved through voting and recorded in the decentralized network. Examples of prominent DAOs include GnosisDAO and Uniswap. You can achieve an efficient DAO governance model by consulting blockchain experts.
The insurance industry has its fair share of conspiracies where most people have found them unreliable, conniving, and untrustworthy, especially when processing claims. However, most insurance companies are out to build their credibility, and adapting to blockchain technology has empowered them to streamline and authenticate their processes, detect fraud, engage customers diligently, and uphold transparency and accountability, which has been a concern for years.
- Real Estate
There are several ways blockchain has impacted real estate; one is by allowing property owners to tokenize their assets and attract global investors. Investors, on the other hand, have a chance to own properties worldwide in token form. This means a single real housing unit can have thousands of owners once it has been tokenized. After buying a fractional share of a real estate property as an investor, you can sell it at a higher price. Blockchain technology has also enabled property owners to store their land titles and other real estate paperwork in digital form in a blockchain database. This is a key blockchain use case, where land titles can’t be altered or tampered with.
- Smart Contracts
Traditional contracts can be time-consuming and marred by disputes and conflicts between involved parties. However, blockchain has a better contract-binding version, smart contracts, and pre-determined self-executing conditions on a blockchain network. Intelligent contracts are intermediary-free and do not leave room for conflicts because the parties must comply with the agreed contract terms. Several smart contract platforms are serving different sectors. A great example is BurstIQ, a platform where health practitioners can share health-related information and are allocated ownership of their information in the blockchain.
There are several participants in a retail chain; consumers, suppliers, payment services providers, and retailers. Blockchain technology has helped the retail industry digitize and automate its operations as they engage customers, suppliers, and financial services providers. Inventory management using blockchain has helped retailers manage their stock by, for example, establishing when to re-stock and if stock is about to expire. Retailers can also protect their customers from fraud by relying on blockchain’s security feature that makes it difficult to infiltrate the network.
- Media and Entertainment
The media and entertainment industries work hand-in-hand in most cases. The two industries have been grappling with challenges like piracy and undeserved royalty payments. Blockchain has helped to rectify the loopholes in the media and entertainment industry by ensuring intellectual properties and copyrights are not infringed and that industry players retain ownership of their content and receive deserved royalties for their hard work.
Improved data integrity, minimized administrative blunders, and patient care are among the ways the health sector has benefited from adopting blockchain. Health centers can incorporate blockchain in their existing software to secure patient records, safely store medical research data, and smoothen supply chain operations. Blockchain technology can also help healthcare providers to verify medical staff credentials during hiring.
This is just a handful of blockchain use cases. There is not a single industry that blockchain can’t revolutionize. Working hand in hand with other technologies like Machine Learning and Artificial Intelligence, the blockchain phenomenon has proved beyond doubt that you either adapt it and benefit or watch from the stands as other businesses and investors exploit its capability. Some state governments using this innovation to enforce transparency and accountability in their service delivery should be enough proof that blockchain adaptation has a bright future.
The best part about blockchain technology is that it is on a discovery journey, meaning that its full potential has yet to be explored, and that can only mean that the best of its version is yet to come. As mentioned earlier, you can contact a blockchain expert for professional guidance in case you have conflicting thoughts about blockchain.