How is blockchain used?
When blockchain is mentioned, usually cryptocurrencies are the first thing that comes to mind in an association. But this technology has been or is actively being implemented into multiple other areas that are seeking to benefit from its implementation.
It is estimated that corporate investment into blockchain will reach $12.4 billion by 2022, and according to PricewaterhouseCoopers, it has the potential to create an annual business value of $3 trillion by 2030. There are more than 40 million blockchain wallets, but what other individual and corporate uses blockchain has?
Cryptocurrencies
Blockchain is used by most cryptocurrencies to record transactions. Popular cryptocurrencies Bitcoin and Ethereum use blockchain, while banks and even nations are looking to start creating their own cryptocurrencies in order to strengthen their national currencies.
Smart contracts
The idea behind smart contracts is to automate contracts so they can be partially or fully executed without human interaction. Smart contracts operate under a set of conditions users agree to, and when those conditions are met, the terms are automatically carried out. This means that contracts do not need a trusted third party to act as an intermediary between contract parties. The blockchain network can execute the contract on its own.
Financial services
Although one of the main ideas behind blockchain and cryptocurrencies was to cut out banks as intermediaries, financial services see the potential behind the system and are implementing distributed ledgers to create private blockchains. Banks see blockchain as a way to speed up back office settlement systems, but to also increase efficiency and reduce costs. There are regulated bitcoin banking solutions being developed (for example Bitwala) that enable its users to manage their bitcoin and euro deposits all in one place.
It is also enabling people access to financial services in areas that are underserved by banks.
Blockchain enables banks to offer secure transactions 24/7 because blockchain never sleeps. With blockchain, banks don’t need to process transactions one by one and it can shorten the transactions time from several days to 10 minutes.
Video games
The creativity behind using blockchain technology seems to have no limits because it has found its way into video games. CryptoKitties is a video game where you can collect and breed digital pets, but also buy and sell them. Using blockchain technology, each cat is 100% unique, owned by its owner and can’t be replicated, stolen, or destroyed. It has had a significant effect on the Ethereum network with approximately 30% of transactions being for the game and creating significant transaction congestion at times.
Energy trading
Virtual net metering, also known as peer-to-peer energy trading is a power system operation, where sellers can generate their own energy and share it with others locally. Companies that offer virtual net metering often use blockchain technology.
Supply chain management
As blockchain data cannot be forged or altered, it can be used to validate the origins of precious commodities. For example, it has been employed to trace the origins of diamonds to make sure they have been mined ethically.
Walmart and IBM have been trial-running a blockchain-backed system to monitor the lettuce and spinach supply chain. While some analysts are not convinced it will have widespread use, it can be, for example, used to rapidly trace a contaminated source if needed.
Anti-counterfeiting
Blockchain can be used as an anti-counterfeiting measure by associating unique identifiers with physical objects. However, it needs support by a technology that enables to create a strong bind between physical objects and the blockchain system. Europe is looking to implement an anti-counterfeiting infrastructure at the European level using blockchain technology.
Healthcare
The blockchain technology came in handy during the 2020 COVID pandemic, where it helped governments, airlines, and employers to keep track of people who have had antibody tests and could be immune to the virus. It can also be used to speed up the process of health insurance payments to patients and healthcare providers.
Domain names
Several different vendors have tried to offer domain name services using blockchain. This enables domain name control with a private key and bypasses the registrar’s ability to suppress domains that are used for illegal content, abuse or fraud. Specific top-level domains like .eth, .luxe, and .kred are associated with the Ethereum Name Service, while the .kred TLD acts as an alternative to conventional cryptocurrency wallet addresses to make transferring cryptocurrencies more convenient.
Blockchain has potential everywhere
As a system that validates itself, can’t be forged or manipulated, the blockchain technology is getting new users and uses every day. If you have any ideas, how it could be implemented for the better, then let us know! Let’s bring a positive change to the world.
