Understand how various industries have integrated the use of Bitcoin into their services
The popularity of Bitcoin and other cryptocurrencies has shifted attention to blockchain, the distributed ledger technology (DLT) that underpins them.
The basics of blockchain technology are intuitive. The technology essentially takes the form of a decentralized database whose entries are verified using encrypted peer-to-peer networks.
It is easiest to imagine it as a Google document thoroughly checked and encrypted, where each cell’s value is dependent on and verified against the values of its predecessors.
However, Blockchain technology is not only the backbone of Bitcoin; there are a multitude of other applications it can be used for. We have included some of the potential areas of use in banking, business, government and other sectors below.
Potential applications of blockchain technology in the financial sector
Remittances abroad
Blockchain technology makes it possible to create an immutable record of transactions that is both reliable and time-efficient, all thanks to secure Bitcoin gambling sites, making it a great option for sending money abroad.
This can be seen with the introduction of the first blockchain-based money transfer service by Banco Santander in April 2018. The “Santander One Pay FX” service uses Ripple’s xCurrent to provide instant and next-day cross-border transfers.
Santander has made the process more efficient by cutting down on the number of middlemen often involved in such deals, by automating it all on the blockchain.
Santander is a large commercial bank; thus, it serves many consumers who can use more convenient and affordable payment options, especially for international bank transfers. By eliminating the need for banks to settle transactions manually, blockchain technology can be used to reduce the cost of such payments.
The stock markets
The financial sector is another area that can benefit from blockchain-based technologies. The benefits that blockchain technologies bring to capital markets are outlined in an article by McKinsey, and they include:
Faster processing of payments
Streamlined audit trail Improved operations Axoni, formed in 2013, develops blockchain-based solutions with a focus on improving capital markets. Axoni has just announced the creation of a distributed ledger network for managing share swap transactions, enabling the two parties to remain in sync with each other throughout the lifetime of a share swap and share relevant updates in real time.
Capitalization on trade
Traditional approaches to trade finance have been a significant source of frustration for companies due to the time and effort required to complete the procedures involved. Many factors, including country of origin and product data, must be communicated during cross-border trade, and many documents must be generated with each transaction.
Blockchain technology has the potential to improve the efficiency and ease of international trade finance transactions. It facilitates business transactions between companies regardless of physical location.
Audit for rules and regulations
Blockchain’s high level of security is a boon to the accounting and auditing industry by removing the potential for human error and ensuring the authenticity of documents. Even the account holders themselves are unable to tamper with the immutable records created by blockchain technology. Blockchain technology could eventually eliminate employment and the need for auditors.
Protection against money laundering
Blockchain’s built-in encryption is a major advantage in the fight against money laundering. Know Your Customer (KYC) refers to a company’s procedure for establishing and verifying the identity of its customers, and the underlying technology enables record-keeping that facilitates this procedure.
Insurance
One of the most promising uses for blockchain technology in the insurance industry is in the form of smart contracts. Both customers and insurers can rest easy knowing that their claims information is safe and secure thanks to these arrangements. Due to the network’s ability to verify all contracts and claims stored on the blockchain, false claims will be eliminated, and true claims will be prioritized.
A network that automates insurance reporting and reduces compliance procedures is opened, which was developed on the IBM Blockchain platform in cooperation with the American Association of Insurance Services.
Interactions between individuals rather than between a bank and a customer
Peer-to-peer (P2P) payment platforms like Venmo are useful, but they have their drawbacks. When it comes to making a purchase, there are several businesses that set up barriers depending on where you live. Some require payment before you can use them. Users are understandably wary of disclosing their credit card numbers and other financial details on websites that are vulnerable to hacking. To overcome these challenges, blockchain technology and its many advantages can be used.
Distributed Ledger Technology (DLT) Use Cases in Corporate Supply Chain Management
The immutable ledger provided by blockchain technology is ideal for use cases such as real-time monitoring of inventory as it is transferred between different warehouses. For businesses involved in moving these items, using a blockchain offers several new opportunities. Supply chain events, such as the distribution of freshly delivered goods at a port to different shipping containers, can be queued using blockchain records. Blockchain offers a fresh and adaptable approach to managing and using data for tracking purposes.
Basic demographic information such as age and gender, as well as certain aspects of a patient’s medical history, such as vaccination records and vital signs, are examples of the types of health data that can be stored on a Data like this can be maintained on a public blockchain where many people can access it without addressing privacy concerns since none of it can be used to identify an individual patient.
Blockchain has the potential to streamline the process by which specialized connected medical devices are integrated with patient health records as they become more widespread. The data collected by these devices can be stored on a healthcare blockchain and added to individual health records. Data generated by connected medical devices is often stored in separate silos, but blockchain has the potential to solve this problem.
Real estate investment
Every five to seven years, the typical homeowner will sell their home, and the typical person will change residences over a dozen times in their lifetime. The real estate sector is very mobile, which suggests that blockchain technology could be useful. Due to the encryption and other security features, it will make the entire home buying process more transparent and faster, and it will also help prevent fraud.
In order to combat fraud, save costs and secure the IP rights to material such as music recordings, the media industry has started to use blockchain technology. MarketWatch predicts that by 2024, the worldwide market for blockchain applications in the media and entertainment industry would have grown to $1.54 billion.
Eluvio, Inc. is a platform that has been in the spotlight for its use of blockchain technology in the media. Eluvial Content Fabric, a blockchain-based solution formally released in 2019, allows content creators to manage and distribute high-quality video to end users and industry partners without the need for content delivery networks.
In recent months, media mogul MGM Studios has also used the service for “global streaming to web, mobile and TV audiences everywhere of ‘certain titles’.”
According to PWC, not only can energy Blockchain technology be used to carry out energy supply transactions, but it can also serve as the basis for billing, clearing and metering. Other possible applications include ownership, asset management, assurances of origin, emission permits and renewable energy certifications.
Use cases for blockchain technology in public registries
Registration of persons, such as births, deaths, marriages and transfers of ownership, is the responsibility of national, state and local authorities. However, managing all this information can be challenging, and many of these records still exist solely in paper form. It can be inconvenient, time-consuming and even discouraging for residents to physically visit local authorities to make changes. There is potential for blockchain technology to improve the security of these records while making them much easier to maintain.
Verify your identity
Proponents of using blockchain technology for identity management argue that if a sufficient amount of data is stored in the distributed ledger, users will only need to provide minimal information (such as date of birth) to verify their identity.
Voting
Voting can be made more accessible and secure by using blockchain technology. Even if a hacker gained access to the terminal, they would not be able to compromise the network as a whole thanks to blockchain. Public authorities would find it easier to vote ballots if they could assign each vote to a unique ID and fraudulent IDs were difficult to produce.
Enjoy what you’ve read so far. To read more about Insider Intelligence’s top financial industry studies, please visit the linked page.
Taxes
With enough data stored on the blockchain, the time-consuming, error-prone process of filing taxes can be greatly streamlined by blockchain technology.
charities
The escalating antitrust issues facing charities could be solved by blockchain’s capacity to demonstrate to donors that their contributions are being used appropriately. Moreover, blockchain technology can help such NGOs to more efficiently transfer these contributions, manage their resources and improve their monitoring skills.
Administration of laws and regulations
Maintaining records is a crucial source of regulatory oversight, but the consequences of not doing so are far more serious. That’s why businesses can’t afford to ignore compliance. With blockchain, governments and companies can access up-to-date records immediately, eliminating delays and facilitating early detection of red flags and anomalies.
Financial management and accounting use for blockchain technology
Customers worried about financial fraud may be tempted by the prospect of blockchain’s supposedly impregnable security if it turns out to be as reliable as it has appeared to be in recent years.
Handling of records
Since blockchain’s core encryption feature eliminates the possibility of duplicate or fraudulent input, it is an ideal system for keeping track of historical data.
Cyber security
When it comes to cybersecurity, blockchain’s primary benefit is that it eliminates the possibility of a single point of failure. End-to-end encryption and anonymity are two additional benefits of blockchain technology.
“Big Data”
A blockchain is a great tool for storing large amounts of data due to its immutability and the fact that all computers in the network are constantly verifying its content.
Matt Davidson has a passion for games and online games of all kinds – from Pokemon Go to Halo to Warcraft and casino games like blackjack and slots. He also writes about IT and technology in general.
