15 applications for blockchain technology

The idea of ​​a blockchain was first thought of as the support mechanism Bitcoin (CRYPTO: BTC). To solve the dual-consumption problem associated with digital currencies, Satoshi Nakamoto developed an immutable ledger of transactions that link blocks of data using digital cryptography.

While the idea works extremely well for Bitcoin and other cryptocurrencies, there are many other useful uses for blockchain technology. Here are 15 of them.

1. Money transfers

The original concept behind the invention of blockchain technology is still a great application. Blockchain money transfers can be less expensive and faster than using existing money transfer services. This is especially true of cross-border transactions, which are often slow and expensive. Even in the modern US financial system, money transfers between accounts can take days, while a blockchain transaction takes minutes.

2. Financial exchanges

Many companies have emerged in recent years that offer decentralized cryptocurrency exchanges. Using a blockchain for exchanges provides faster and cheaper transactions. Furthermore, a decentralized exchange does not require investors to deposit their assets with the centralized authority, which means that they maintain greater control and security. While blockchain-based exchanges primarily trade in cryptocurrencies, the concept can also be applied to more traditional investments.

Lending

Lenders can use blockchain to execute secured loans through smart contracts. Smart contracts built on the blockchain allow certain events to automatically trigger things like a service payment, a margin call, full repayment of the loan and release of collateral. As a result, loan processing is faster and cheaper, and lenders can offer better rates.

4. Insurance

Using smart contracts on a blockchain can provide greater transparency for customers and insurance providers. Registering all claims on a blockchain would prevent customers from making duplicate claims for the same event. Furthermore, the use of smart contracts can speed up the process for creditors to receive payments.

5. Property

Real estate transactions require lots of paperwork to verify financial information and ownership and then transfer deeds and titles to new owners. Using blockchain technology to record real estate transactions can provide a more secure and accessible way to verify and transfer ownership. It can speed up transactions, reduce paperwork and save money.

6. Secure personal information

Storing data such as social security numbers, dates of birth and other identifying information in a public ledger (eg a blockchain) can actually be more secure than today’s systems that are more vulnerable to hacks. Blockchain technology can be used to secure access to identifying information while improving access for those who need it in industries such as travel, healthcare, finance and education.

7. Voting

Keeping personal identity information on a blockchain puts us just one step away from also being able to vote using blockchain technology. The use of blockchain technology can ensure that no one votes twice, only those entitled to vote can vote, and votes cannot be tampered with. Also, it can increase voice access by making it as simple as pressing a few buttons on your smartphone. At the same time, the costs of conducting an election will be significantly reduced.

8. Government benefits

Another way to use digital identities stored on a blockchain is for the administration of public goods such as welfare programs, Social Security and Medicare. Using blockchain technology can reduce fraud and operating costs. In the meantime, recipients can receive funds faster through digital payment on the blockchain.

9. Share medical information securely

Keeping medical records on a blockchain can allow doctors and medical professionals to get accurate and up-to-date information about their patients. This can ensure that patients who see more doctors receive the best possible treatment. It can also speed up the system of retrieving medical records, allowing for more timely treatment in some cases. And if insurance information is kept in the database, doctors can easily verify if a patient is insured and their treatment is covered.

10. Artist royalties

Using blockchain technology to track music and movie files distributed over the Internet can ensure that artists get paid for their work. Since blockchain technology was invented to ensure that the same file does not exist in more than one location, it can be used to reduce piracy. In addition, the use of a blockchain to track streaming services and a smart contract to distribute payments can provide greater transparency and assurance that artists receive the money they owe.

11. Non-fungible tokens

Non-fungible tokens, or NFTs, are often thought of as ways to own the rights to digital art. Since the blockchain prevents data from existing in two places, putting an NFT on the blockchain guarantees that only a single copy of a piece of digital art exists. It can make it like investing in physical art, but without the disadvantages of storage and maintenance.

NFTs can have varied applications, and ultimately they are a way to convey ownership of everything that can be represented by data. It can be the deed to a house, the broadcasting rights to a video or an event ticket. Anything that is externally unique can be an NFT.

12. Logistics and supply chain tracking

Using blockchain technology to track goods as they move through a logistics or supply chain network can provide several benefits. First, it provides greater ease of communication between partners since data is available on a secure public ledger. Secondly, it provides greater security and data integrity since the data on the blockchain cannot be changed. This means that logistics and supply chain partners can work together more easily with greater confidence that the data they provide is accurate and up-to-date.

13. Secure Internet of Things networks

The Internet of Things (IoT) makes our lives easier, but it also opens the door for malicious actors to access our data or take control of important systems. Blockchain technology can provide greater security by storing passwords and other data on a decentralized network instead of a centralized server. In addition, it provides protection against data tampering since a blockchain is virtually immutable.

14. Data storage

Adding blockchain technology to a data storage solution can provide greater security and integrity. Since data can be stored in a decentralized way, it will be more difficult to hack into and delete all data on the network, while a centralized data storage provider may only have a few redundancy points. It also means greater access to data since access does not necessarily depend on the operations of a single company. In some cases, it may also be cheaper to use a blockchain for data storage.

15. Gambling

The gambling industry can use blockchain to give players more benefits. One of the biggest benefits of running a casino on the blockchain is the openness it gives potential players. Since each transaction is recorded on the blockchain, bettors can see that the games are fair and the casino pays out. Furthermore, by using a blockchain, it is not necessary to provide personal information, including a bank account, which may be an obstacle for some potential gamblers. It also provides a solution for regulatory restrictions since players can gamble anonymously and the decentralized network is not subject to closure by the authorities.

Blockchain is in its infancy

Blockchain technology has only been around for a dozen years, and companies are still exploring new ways to use the technology to support operations. With the growing amount of digital data being used in our lives, there is a growing need for data security, access, transparency and integrity the blockchain can provide.

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Expert questions and answers

The Motley Fool got the chance to chat with Dr. Merav Ozair, a leading blockchain expert and FinTech Professor at Rutgers Business School. She serves as research director for RBS Blockchain Hub, as well as advisor and researcher at Rutgers Blockchain and FinTech Collaboratory. Here’s what she had to say.

The Motley Fool: Which industries, other than finance, do you think blockchain has the potential to disrupt?

Dr. Ozair: The future I have envisioned is that all products or services we know today will run on some form of blockchain technology. In other words, the “rails” of all products and services (ie the technology that “runs” these applications) will be a type of DLT.

I really believe that in 10 to 15 years this will be feasible.

Like the internet, which has become a central part of our daily lives, and we cannot imagine life without it, DLT will do the same. When we use the internet, we do not ask ourselves – “How does it work?” or “Why should we use it?” – we use it simply for the mobility, flexibility, efficiency and connection it provides. The COVID-19 pandemic has underscored the benefits of the Internet. It enabled us to connect to services, products and people and enabled a smooth transition to an external, contactless global economy. Now Web 2.0 – The Internet is evolving into Web 3.0 – Distributed Ledger technology.

The Motley Fool: What innovations or trends in blockchain technology are you most excited about?

Dr. Ozair: The ecosystem of blockchain technology is evolving very rapidly. Every day (literally) you learn about new applications and new business use cases that have used blockchain technology. It is really – slowly but surely – implemented in every industry and every “traditional” application. From finance to healthcare to retail to art to education, the implementations are limitless.

The true power of blockchain technology is its ability to facilitate services to underserved societies and to truly democratize society. That was the premise of Bitcoin, when it was first launched in January 2009 – ie a peer-to-peer payment system, and we lost some focus on the main purpose of blockchain technology as “greed” got in the way.

The use of the Decentralized Autonomous Organization (DAO) to manage any blockchain system and application will enable blockchain applications to meet the needs of underserved communities, nationally and globally.