Blockchain is touted to be a technology having the potential to change the way we do things in different spheres of life. We have already discussed a few use-cases of Blockchain in the first blog of our Blockchain series. Today we take a deeper insight into the most promising use-cases and applications of Blockchain.
- Supply Chain Management
Blockchain is disrupting Supply Chain Management by addressing the issue of transparency with immutable and secured time-stamped audit trials. It helps in stopping counterfeits and thefts and improving regulatory compliance. It also reduces paperwork and costs. Blockchain helps end customers trace the origin of products.
Projects involved in building blockchain-powered supply chain management platforms include VeChain and Origin Trail. Companies like Walmart, Maersk, British Airways, UPS, and FedEx are using Blockchain for their supply chain.
- Digital Identity
Projects like Civic, Uport, Jolocom, and MONI are making good use of Blockchain for digital identity management. They allow people to have a self-sovereign ID for identity verification anywhere, anytime.
The ID also collects medical records and stores them securely. Digital Identity solutions help people take centralized control of their information rather than consenting multiple parties to store it.
Healthcare data exchange platforms like Medicalchain are using Blockchain technology to record patient information on a distributed ledger. They encrypt patient data and allow conditional access to different stakeholders.
This data becomes the single source of truth for everyone concerned. The technology records and maintains a time-stamped audit trail of every interaction with the patient’s health data.
- Tokenization of assets
Illiquid financial and real-estate assets such as venture capital, private equity, commercial real estate, art, etc. can be tokenized. Asset tokenization unlocks liquidity for their owners. It also serves as an alternative investment to all.
The process of asset tokenization involves issuing a blockchain token, also called a security token. It enables fractionalizing, trading, and settling digital assets in global markets. Platforms for asset tokenization include Alphapoint, Harbor, Smart Valor, and Polymath.
- Energy Trading
Peer-to-peer energy trading platforms like Grid+ and Power Ledger allow individuals to trade electricity like any other commodity. They use Blockchain to enable people to meter the electricity generated from their solar panels, record, trade and settle it on a ledger.
Energy Trading helps in decentralizing the energy market and reduces the monopoly in the hand of a few large organizations.
Several big insurance companies Allianz and Swiss Re, as well as start-ups, are exploring the applications of Blockchain in different types of insurance products such as Property and Casualty insurance, marine insurance, Health insurance, and Reinsurance.
Blockchain technology provides insurers with better tools for collaborating and sharing data for fraud detection and risk prevention. However, to disrupt the insurance industry, the legal and regulatory frameworks for insurance need to evolve, and so does the Blockchain technology. Use-cases of Blockchain in insurance include Etherisc, Insurwave, MedRec, etc.
Voter count is lowered by the norm that the voter must be physically present at the voting booth. Additionally, voter fraud plagues the voting structure. Online voting was not feasible due to concerns of fraud and security before Blockchain came to light. Blockchain technology has tamper-proof characteristics, and it provides a clear record of votes while giving geolocation flexibility to the voters.
About 150 people in the state of West Virginia voted using a blockchain-based voting app in 2018. South Korea and Japanese city Tsukuba have also completed tests of a Blockchain-based voting system.
Blockchain is the technology that serves as the foundation on which many cryptocurrencies stand. Cryptocurrencies are digital currencies that facilitate peer-to-peer transactions. They act as a medium of exchange to buy & sell products & services. Anyone with an internet connection can obtain a cryptocurrency wallet to send and receive money, which is easier than opening a bank account. This feature has come as a boon to a large population, not having banking services access.
Examples of cryptocurrencies include Ethereum, Ripple, Litecoin, etc. Cryptocurrencies have also spawned the development of crypto banking. For instance, Bitwala has coordinated with Solaris Bank to offer licensed crypto and fiat banking accounts.
The list of promising use-cases is fast growing as the technology is evolving rapidly. However, we have listed only those applications that are already impacting the way we do things. Stay with us as we explore other interesting aspects of Blockchain in the following blogs of our series.