The blockchain is a technology that could change the way we use technology, services or products. Some people describe the blockchain concept as ‘magic beans’ due to numerous high-level use cases promised by the blockchain.
Before we can start with the list of stunning blockchain uses cases, we first have to understand what the blockchain is.
Blockchain is a digital, decentralized ledger. In a decentralized system, everybody is able to download the blockchain from the network and be part of the network. The blockchain is also called a ledger, because it could store data, for example, transactions. In Bitcoin’s case, the blockchain stores every transaction ever made on the network.
The blockchain concept also offers security and transparency due to the fact that everybody could validate the blockchain.
Feel free to read my Blockchain Guide if you need detailed information about the Blockchain concept.
#1 Supply Chain Management
What is the supply chain?
The supply chain is a network from businesses to its suppliers.
Okay, let’s face the problems with supply chains.
- Lack of transparency when the product makes moves in the supply chain
- Product authenticity
How can the blockchain help here?
Blockchain could help supply chains through the digitalization of assets. It allows products to be monitored through a unique identifier. These assets are transparent and immutable on the blockchain. Blockchains could help to track important information of products such as location, times or state of a product.
In addition to that, consumers could verify the authenticity of a product.
#2 Distributed Storage
First of all, we have to understand the current situation. You upload your files to Google Drive, Dropbox or OneDrive to secure your data. In this way, you have to trust companies like Google or Microsoft that they won’t look into your data and secure them properly. In addition to that, governments could force these companies to give them every data they own from you. Blockchains could help to solve that problem by storing your data decentralized and encrypted. Storing your data on a Blockchain could also reduce costs. Storj is one of the first cryptocurrency project, where you are able to store your data on a decentralized network with high encryption.
#3 Digital Identity
Today, digital identities are becoming more and more problematic. Companies and platforms are increasingly finding scammers and data breaches. The ownership is in the hands of the application/company that we give them the conses to.
In a Blockchain, users have control over their information. Instead of providing consent to an organization, the digital identity could be stored on a blockchain in an encrypted digital hub. Users could control access to the hub by giving or revoking permissions to it, if necessary.
The Blockchain could be also useful for digital voting. Digital voting has been resisted by many people due to security and fraud. The concept of the Blockchain makes it nearly impossible to hack or manipulate the votes. In addition to that, an analysis of the previous votes would be far easier if a Blockchain would be used for voting.
Security tokens could be used to sell tokenized financial instruments, such as debt.
Advantages of a security token:
- Lower investments through fractional ownership
- Instantly tradable
Security token offerings are a much more regulated form of investment compared with an ICO (Initial coin offering). STOs are less like to be a regulatory issue as stakeholders have to register their products and services with their national regulators.
Medical institutes have a lack of understanding of a patient’s complete medical history. Blockchains could be used to store a person’s medical information in a secure and faster way. In addition to that, a medical institute could use this data and have a much better understanding of the medical problem a person has.
#7 Energy Market
Blockchains could help to decentralize the energy market. Blockchains could be used by individuals to trade the energy if they, for example, own a solar panel and generate energy with it. In this way, individuals could be consumers and producers of energy.
#8 Intellectual Property (IP)
The Blockchain system could be used to provide accurate and clear ownership of IP assets. A system like that gives intellectual property owners security against patent trolls.
#9 Real Estate
Blockchains could be used for rental payments. Furthermore, smart contracts could be used to make automatic and secure payments after each payment circle.
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