If you’ve stayed on the internet for long enough, chances are you’ve come across the term ‘Blockchain’ at some point. Blockchain-related news and discussions are increasingly making the rounds in this day and age.
In a nutshell, Blockchain is a type of database. It serves as a digital ledger that records transactions. This is duplicated and sent to other computer systems in the same network. Each ‘block’ in the Blockchain holds a number of transactions. Every time a new transaction takes place, it is recorded.
Blockchain technology is significant primarily because it is decentralized, thus making information transparent, accessible, and easy to account for. It is a democratized system in the truest sense of the word. Today, it is more popular than ever, and here are some use cases and applications to prove it.
Use Cases & Applications Of Blockchain
Blockchain technology has a multitude of use cases in the finance industry. The main ones are:
- Cross Border Payments
- Initial Public Offering (IPO)
- Lending Platforms
- Invoice Management and Billing Solution
- Fund Investment
- Credit Score
- Political Funds
- Financial Record Keeping
- Government Expenses
- Stock Exchange
Blockchain technology proves to be useful especially for something like cross-border payments, where individuals can send and receive money without interference from any governing bodies across countries. So you can expect to settle your payments quickly and without hassle. Be sure to keep this in mind as you look for finance app development companies.
2. Smart Contracts
Whenever one talks about the advantages of Blockchain, they almost always mention smart contracts. Smart contracts are essentially an agreement between parties in the absence of any intermediary body. This contract is created in a decentralized and distributed Blockchain network. Just about every industry you can think of – real estate, healthcare, etc., uses smart contracts.
For eg., a real estate platform called ‘Propy’ uses a Blockchain-based title registry system. This platform automates transactions between clients, brokers, and realtors, making it easy to buy and sell properties using cryptocurrency.
3. Sports & eSports
Blockchain technology is known to help sports and eSports in a variety of ways. One of its most noteworthy advantages is improved fan interaction by incentivizing engagement. Incentives for better engagement include better cross-partner loyalty programs. These programs encourage fans to take specific actions or purchase specific products. Other use cases include:
- Decentralized eSports Ecosystems
- Blockchain-Based Ticketing Systems
4. Real Estate
Blockchain technology facilitates streamlined transactions. These transactions are devoid of affiliated costs like lender charges, brokerage fees, inspections, legal fees, and intermediaries. Contracts and agreements such as Tenancy agreements for instance are created using smart contracts, as mentioned above. Smart contracts allow you to carry out transactions and agreements without the need of a centralized body or entity, thus making it easy for both parties involved.
5. Money Transfer
Back then, you relied on cheques and cash payments. Today, lightning-fast payments are mandatory for any business to thrive, which is why efficient money transfers and payment processing are the need of the hour. Blockchain technology facilitates quick transactions in real-time.
Chainalysis, a FinTech/Cybersecurity company provides Blockchain and data analysis reports to exchanges and financial institutions in over 40 countries. This company primarily helps track crypto exchanges. Besides this, Chainalysis helps you identify compliance violations, fraudulent transactions, money laundering, and other malpractices, all thanks to Blockchain technology.
6. Personal Identity Security
Identity fraud and theft happen all over the world. In 2018, 16 million Americans complained about identity fraud and theft. It can be nerve-wracking to upload sensitive personal information like birth certificates, social security numbers, etc. However, with Blockchain technology on your side, you do not have to worry about identity theft because it is decentralized.
The Illinois Blockchain Initiative, a state-funded initiative has already made use of Blockchain technology to boost the security of vital information like voter registration cards, death and birth certificates, social security numbers, etc.
As you probably know by now, Blockchain technology is powerful and shows no signs of disappearing. More and more companies across different sectors, across the globe, are incorporating Blockchain technology to enhance security and performance. If you are getting into blockchain app development, now would be a good time for the applications, use cases, and companies mentioned in this article are only a few of many.