The ever-growing popularity of cryptocurrencies (digital currencies) has struck most investors with awe. Bitcoin, the leading crypto and most famous of the altcoins, has seen tremendous acceptance and usage in recent years. Others like Ethereum, Litecoin, and Ripple aren’t also left behind. Would you like to know more about Bitcoin and how to invest in the crypto industry? Talk to friends who know about it.
Meanwhile, with the rapid utilization of cryptocurrencies comes the world’s game-changer, Blockchain. Companies are intensely exploring it. Blockchain Use Cases in real life have been on the rise. Let’s discuss five of them.
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Background of Blockchain
Before going further, I guess you might be wondering what this thing changing world is about, right? Of course, not everyone knows or has heard of the technology. So, what’s Blockchain, and how does it work? Simply put, Blockchain is the technology behind all cryptocurrency transactions people make out there. It’s a system that offers the safe maintenance and permanent storage of a digital ledger of contracts, transactions, and other related information across a computer network.
The network is a peer-to-peer one that’s distributed, decentralized, and transparent. Blockchain operates in four main ways. It employs a set of rules to validate a transaction occurrence, secures each verified data record before combining it with others using cryptographic techniques, and then adds the data (blocks) to the ledger distributed across numerous worldwide computers. Lastly, it avails new transaction details to all participants within the network. Blockchain is the most secure system; once data is added to its ledger, it can neither be altered nor removed.
Blockchain in Real Life
This technology’s security and transparency are significant to its widespread use in various industries and economic sectors. It has numerous applications in real life that can change the business world and improve its efficiency. Several sectors are embracing the use of Blockchain to accomplish various tasks. Here are five use cases of the technology:
1. The Real Estate Market
The Blockchain application in the real estate industry is a great move and a viable solution to many problems. Its secure, transparent, and efficient nature can help eliminate some of the greatest challenges facing the traditional real estate market like lack of transparency, low liquidity, too high fees, and prolonged transactions. With Blockchain, payment systems, title deeds’ management, property ownership & management, and property search process are improved.
Several benefits will accrue from using Blockchain in this sector. Since people would like to see an improvement in an existing situation, this system assures them that. Some of its advantages when used in the real estate industry include:
- Accelerating Transaction Process. Currently, this is a nightmare due to the lengthy approval processes, middlemen, and title searches. Blockchain’s database can assess the validity of property ownership quickly and enable fast title transfer without the need for a third-party. That way, the transaction process will speed up.
- Online Data Security. Since it allows immutable data storage, property records like deeds, surveys, and other sensitive information will be secure.
- Cost Reductions. Real estate transaction costs tend to be high, involving fees like registration fees, taxes, inspection costs, and commissions. The automation of all real estate investments through Blockchain will eliminate all those costs.
- Improving Liquidity. The use of cryptocurrency technology will change the commonly known illiquid asset to liquid. Crypto can make real estate easily tradable and reduce the time homeowners currently take to complete sales.
2. Supply Chain Management
The supply management process is complex and full of excessive paperwork and manual processes. All that can be reduced by the Blockchain’s smart contracts and distributed ledger. The technology also aims to streamline the supply chain functions and limit their inefficiencies. Lack of straightforwardness during the production and movement of products and legitimacy issues constitute a significant concern in the sector.
Blockchain guarantees the solution to such problems through automation. It assists in following an item’s data like its condition or usability timespan. Then, with its resource digitization set up, the item’s production network can be efficiently transferred to a store network. Blockchain-assisted supply chain makes it easy for consumers to confirm the genuineness of purchased products since they can be adequately tracked over various supply chain stages.
3. Blockchain in Marketing
Today, most marketing occurs via digital platforms but is faced with challenges like hackers stealing users’ data and fraudulent advertising revenue generation. Even so, with Blockchain, that’s a solved problem. The technology uses unanimous procedures and cryptographically safe mechanism to store the data. Only authorized users can access the data using cryptographic keys. Even if the marketing industry uses the public ledger system for storage and sharing of users’ data, hackers might steal it but won’t manage to see or use it anywhere.
The current way of holding and sharing patients’ data in various formats and standards is outdated and can’t meet modern users’ expectations. The solution to the issue is Blockchain. With it, patients’ information can be recorded and stored in a distributed ledger which can give various stakeholders a single source of truthful data. The data can also be recorded with a time stamped audit trail (encrypted). That will ensure safety of patients’ information, give them more control over their data, and eliminate the inefficiencies accompanying the current data management practices.
5. Digital Identity
Centralized digital identity entities are becoming more vulnerable to identity thefts and data breaches. Our data is managed by applications which increases the likelihood of professional hackers to obtain them. Blockchain technology gives users control over their personal information and how it’s used. Instead of passing ownership of our digital identity data to centralized service providers, we can keep them in an encrypted digital system. That way, we can control access to that system and even revoke access to it if the need arises.
The Bottom Line
With continuous technological advancements, our world will experience more inventions that affect several life sectors (political, economic, or social). Such trends, like Blockchain, will have immense benefits to the field they relate to. Meanwhile, we can all appreciate the impacts of Blockchain technology on various industries today.