The financial use cases of blockchain are exponentially gaining the spotlight owing to the significant interest of parties like banks, investors and even governments.
Together with banks and FinTech startups, non-financial players are keen and finding ways to leverage opportunities to the distributed ledger openings.
But before learning the disruptive potential use cases of Blockchain, you must learn how the Blockchain technology works and why it is called the next big thing in the financial world.
The Blockchain Technology
The blockchain is an open, distributed ledger that records the transactions taking place between two parties validly and verifiable. The peer-to-peer network manages blockchain which regulates according to the protocol required for the inter-node communication and certifying the new set of blocks.
In 2008, Blockchain was created by Satoshi Nakamoto with the purpose of serving as public transaction ledger of the cryptocurrency bitcoin. With the invention of Bitcoin, the first ever digital currency with no intermediary and central authority.
To make it simple, blockchain is a compilation of technologies which work just like bricks used in construction. To produce desired results, you can select different bricks and locate them collectively in diverse forms.
The blockchain use cases follow the same. Just like the use cases of bricks are many, the blockchain use cases are many as well.
Eventually leading its way via the financial services, blockchain is soon becoming the favorite of every industry and are currently experiencing benefits with it.
The Use Cases of Blockchain
The nature of Blockchain is both transparent and decentralized in nature, meaning it enables the development of a robust and non-refutable record of data, making it the essential feature, allowing more companies to explore and apply it to their core business.
To put it simply, the significant decrease of intermediaries, fraud, and access to real-time information without the manipulations. Although, blockchain is a reliable financial technology; it still has some significant implications in businesses and corporations.
Several companies have started to adopt this technology and are finding new ways to use the blockchain technology.
Here is a list of interesting and exciting use cases of multiple industries that are dismantled by the blockchain technology:
Internet of Things (IoT)
As the blockchain technology seem to burgeon and take over the traditional form of currency; there have been several essential implications for the Internet of Things and the development of the Smart systems.
The blockchain technology can be used in providing a track of the exclusive history of individual devices, by recording the ledger of data exchanges between it and other devices, web services, and users.
For example, electronic couriers can help in securely carrying sensitive information, ownership rights transferred via escrow services, also auto-installation services that verify and push updates to the software governing Digital-to-analog converters (DACs).
Exchange and Remittance
When it comes to exchange and remittance, there are quite a few flaws such as high transfer cost, limited ways to deal with money, limited money distribution methods and brand options; these hold the massive possibility for innovation in services relating to finance.
The use cases of blockchain in currency exchange and remittance can be of most significant benefits since it is now being adopted and implemented all around the globe.
Currently, there is an enormous boom in this sector, and many top financial institutions, including few of the major banks, are starting to venture into this and explore the potential of blockchain technology.
As of now, the concept of smart transport is to escalate the currently existing infrastructure and resources instead of including newer inventions. Profoundly using the existing resources create affordable transportation which thereby excludes the need for roads and vehicles.
It boasts of features like enabling the private car owners to share their ride with people traveling in the same direction via the Real-Time Ride Sharing.
As a decentralized platform, the blockchain technology can come in handy, as it eliminates the middlemen and puts in together the users traveling in the same direction.
Data or Cloud Storage
A current lot of cloud storage services are centralized, making users trust in a single storage provider. The blockchain technology can come in handy to make this service a decentralized one.
Banks and healthcare industries are few of those industries that have accepted the decentralized storage system and are about to experience some disrupting changes.
THE BOTTOM LINE
The use of this technology is disruptive in many cases; the ones we’ve listed will give you a hint of it can impact in the future as well. We only hope that more and more people start accepting this technology as it can make life more comfortable in a lot of ways.
If you find that we are missing on a significant disruptive use case that concerns blockchain technology; write to us in the comments section.