Examples of Blockchain Technology in Business and Life
With cryptocurrencies and bitcoin gaining popularity, the world has started to focus on blockchain technology too. Blockchain technology is the basic distributed ledger technology (DLT) that drives these digital currencies. The technical aspect of blockchain technology exists in the form of a shared database crowded with entries that are to be validated and encrypted by peer-to-peer networks.
Beyond the use of blockchain technology as the driving force of digital assets, there are many other uses and applications of blockchain technology. Here are some of the major uses of blockchain technology in business, governmental activities, finances, and various other industries.
- International Payments
Blockchain technology offers a secure and efficient way to transfer money and make international payments. Santander One Pay FX is known to be the first money transfer service based on blockchain technology. It uses xCurrent of Ripple to make international payments. With the use of blockchain technology, Santander could minimize the need for intermediaries usually included in the transaction process. It also helps to reduce transaction costs.
- Capital Markets
Capital Markets can be improved with the help of blockchain technology. It can be used for integrated audit trail, faster settlement and clearance, and operational enhancements. Startup Axoni was specifically launched to develop blockchain-based solutions to improve the capital market. Recently, Axoni declared the launch of its distributed ledger network that helps manage the transaction of equity swap.
- Money Laundering Protection
Blockchain technology’s integral part lies in encryption and it is very useful for fighting money laundering. This technology helps in record keeping, supporting KYC for the businesses to identify and verify the clients’ identities.
Blockchain technology shows its impact in the insurance sector with smart contracts. It helps insurers and customers to handle claims securely and transparently. All the claims and contracts can be easily recorded using blockchain technology and can be verified by the network. This will avoid invalid claims as blockchain technology will reject the same accident’s multiple claims.
- Supply Chain Management
The immutable ledger of the blockchain is ideal for real-time tracking of products and goods as they travel and reach various hubs in the supply chain. Blockchain helps to open different options for the transportation companies to move these goods. A blockchain’s entries can be made use of to line up different events in the supply chain.
General data of the healthcare sector such as gender, age, and other fundamental medical histories can be ideal for blockchain. Using this information, the identity of the patient cannot be revealed. This helps to store this information on a shared blockchain that can be accessed by many individuals with no privacy concerns.
- Real Estate
Real Estate is a widely growing business sector and the use of blockchain technology will help in its further expansion. It will help to accelerate home sales through quick finance verifications and eliminate fraud. The encryption feature in blockchain technology will be of great use in the real estate sector. It will bring transparency to the whole selling and buying process.