Blockchain technology has grown astronomically over the last decade or so. More importantly, it has continued to evolve and is arguably the fastest-growing technology in the world today. So much so that blockchain is the beaming buzzword in the world of technology and has almost become trendy.It is also important to note that there is more to it as blockchain offers a myriad of real-life use cases and can be applied to a variety of sectors to optimize how they operate. It not only has a tremendous upside on an enterprise level, but it also offers a lot of safety, security, transparency, and convenience to the end consumers.
Hence, it is fair to say that blockchain technology is trendy, but is highly practical and demonstrable as well. In this blog post, we will look at the top 5 blockchain use cases and understand how this technology is gradually revolutionizing enterprise operations.
Top 5 Use Cases of Blockchain Technology
Let us begin by mentioning that there are numerous applications and use cases of blockchain and it can be applied to literally any kind of operation. Why? Because the underlying mechanism of this technology is extremely simple – it is a decentralized and distributed mechanism that maintains records of any kind of transaction in real-time. Hence, be it financial transactions, be it exchange of digital assets, or be it exchange of data, blockchain records all of it real-time, while ensuring that the entries cannot be edited or deleted, thus ensuring that the processes run in a transparent and secure manner. In this context, let us look at the top 5 blockchain use cases.
1. Finance & Money Transfer
This is arguably the most sought-after blockchain use case. While it is true that cryptocurrencies are the most potent use case in this context, there is more to it. Cryptocurrencies are digital currencies that are an alternative to traditional/fiat currency and they enable peer to peer transactions as well as trading functionalities over a blockchain framework. However, one cannot ignore the concept of DeFi (decentralized finance) which is a concept that allows users to conduct financial transactions of any kind without the involvement of any third party centralized authority, Here, the fact is, DeFi platforms enable users to host decentralized applications and execute financial transactions as per their own terms. So, it is fair to say that blockchain has potentially revolutionized the world of finance.
2. Supply Chain
The supply chain industry is crippled with multiple inefficiencies and pain points. A few of those include – counterfeiting of goods, lack of efficient tracking systems leading to misplacement of goods, potential contamination and tampering, among several others. It is important to note that a majority of the problems associated with supply chain management is related to the presence of multiple middlemen. Blockchain technology can solve this issue by keeping a decentralized and transparent record of supply chain interactions and transactions right from the point when a particular product is placed on the supply chain. This essentially means that there will be 100% traceability and at any point, the associated details related to the product journey within the supply chain cannot be tampered with or manipulated.
Healthcare sectors across the world are crippled with information overload and lack of synergy between the relevant stakeholders like doctors, hospitals, patients, etc. when it comes to the management of data. Blockchain has the potential to ease up this process by implementing a cryptographically secure distributed ledger that would allow all the stakeholders to have access to relevant information and data at every necessary touchpoint without the requirement of maintaining complex database management systems.
Two of the most common discrepancies in the insurance industry are – lack of authenticity in insurance claims and the delay in redeeming claim benefits. Blockchain can solve both these issues by implementing smart contracts that ensure the occurrence of certain events upon the fulfilment of pre-set conditions. This essentially means that the blockchain system will keep a distributed record of all claims made by an individual and dispatch the claim amount instantly upon verification, thus eliminating the delay. At the same time, it would also help insurance companies to identify false claims (multiple claims made upon the same event) that might have been made by fraudulent parties.
5. Real Estate
Transactions and dealings in the real-estate space can be extremely complicated, especially due to the immense amount of paperwork involved. Blockchain can solve this issue by recording real-estate transactions and interactions in real-time, thus easing up the process of verifications and transfer of ownership. Furthermore, it can reduce fraudulent activities in this space by implementing real-time identity verification and other security mechanisms.
Blockchain use cases are ubiquitous and one can literally carve out hundreds of applications. However, the above mentioned ones are the most impactful, simply because of the size of these sectors and how blockchain can completely optimize their operations. In the next few years, as blockchain continues to evolve, it will be interesting to see how this technology can be applied in more potent and creative ways. At ModiCoin, we are leveraging the power of blockchain technology to carve out such applications.