As per cryptocurrency advocates, the actual use case of blockchain is in the trading of these digital currencies, which leads to misconceptions about the actual potential of blockchain. Blockchain technology can help the supply chain with simplicity and transparency by creating a new decentralized standard to keep an immutable record of all transactions.
Blockchains are not confined to just cryptocurrency. People can use blockchain to store and transfer information or value, like monetary value. But crypto trading is a lot easier and cheaper than universal applications of this technology; hence, it captures the attention of enthusiasts and investors. For a safer trading experience, you can use the Crypto Genius.
However, it is imperative to understand that innovations in technologies like blockchain do not stop at digital currencies and may even improve services like voting or e-commerce in the future.
Potential Applications of blockchain beyond cryptocurrencies:
Here are some of the examples where blockchain is being tested.
1. Supply chain
The most significant advantage of blockchain is the transparency it enables in the supply chain. The lifecycle of products in supply chains is complex and involves multiple parties across geographies. Blockchain will help keep track of every transaction that has occurred at different stages of the supply chain, thus reducing chances for frauds like duplicate product sales or even fake goods production. It will also provide an immutable record for auditing purposes, thus making it easy for consumers to verify their purchases and manufacturers to provide warranty on their products
2. E-voting:
A paper-based voting system is often prone to human errors. For example, it is estimated that more than a third of the votes cast in the recent U.S. presidential elections might have been affected by such errors. However, with the rise in Internet of Things (IoT) devices, a digital voting system may be more reliable and practical. So, how can blockchain help?
With blockchain, voters will avoid using paper ballots and instead use their digital identities stored on a secured ledger to vote online. As most transactions are immutable, they can easily be tracked and audited, thus reducing the chances of fraud or manipulation in the election process.
3. Commercial real estate:
A recent report suggests that commercial real estate owners globally spent more than $100 billion in 2016 on maintenance, security and improving property value. Blockchain can help by cutting these costs by 30% to 50% owing to its innovative contract capabilities.
Moreover, it would allow the real estate owners to use the saved resources better, like improving customer experience.
4. Music industry:
Blockchain can also go beyond cryptocurrencies and supply chain management to improve global content distribution across rights holders. For example, it enables micropayments for music streaming, among other related services like digital downloads and ringtones.
It, therefore, has the potential to eliminate intermediaries like Apple Music, Spotify, and Pandora. As a result, an artist no longer needs to worry about getting paid for their work as smart contracts will help them automatically receive payments. Similarly, artists may also benefit from issuing and selling their tokens which would let them fund their projects.
5. Healthcare:
The healthcare industry is also trying blockchain solutions to tackle security concerns and data breaches in healthcare systems. For example, Hashed Health is an industry consortium that wants to use blockchain-based tools like Ethereum’s smart contracts, allowing participants, including doctors, hospitals, and insurance companies, to communicate more efficiently without compromising patients’ confidentiality of records or any other sensitive information.
6. Philanthropy:
The Bill & Melinda Gates Foundation is piloting a project to use blockchain technology to track international aid donations. The Foundation aims to cut fraud costs by using smart contracts, which would automatically release funds for donor-contributed goods and services at pre-set times. It will also help provide complete transparency about the donors, transactions and recipient organizations, thus eliminating corruption.
7. Automotive:
Blockchain is also used in the automotive industry to help reduce insurance premium costs and improve customer experience through better customization. BMW and Ford are reportedly experimenting with blockchain-based solutions for car customization. It will also help in data tracking, making it easy to conduct maintenance on a vehicle. Blockchain is also being used to track cars to keep the data secure during transport, thus cutting the chances of theft or tampering.
8. Energy:
The use of blockchain in the energy sector can also be illustrated by the fact that PJM Interconnection, the real-time energy market operator within the U.S., has successfully tested blockchain technology for trading electricity during a two-week pilot program that began in October 2017. The test involved 30 participants, including buyers and sellers of electricity, using a blockchain platform developed by Digital Power Group (Group).
