The creation of bitcoin was accompanied by another innovative technology: The blockchain. Since its inception, many are the uses that companies have given it. Do you want to know the potential of the blockchain? In this article, we will tell you all about the main applications of the blockchain.

Although the blockchain was created by the hand of Bitcoin, the innovative applications of the blockchain emerged with Ethereum. While the Bitcoin blockchain limited its use to financial applications, ethereum allowed to run small applications, known as smart contracts.

 This development of blockchain technology has caught the attention of a multitude of international companies, which have begun to develop applications on Blockchain. Elimination of intermediaries, automation, security, or cost savings are some of the benefits of blockchain technology.

Below, we have collected a large number of blockchain applications in companies. The uses of this technology in different sectors can be endless. Therefore, if you want to know a specific application, we recommend using the following index.

 Cryptocurrencies

Everyone relates blockchain technology to cryptocurrencies. And it is that the blockchain is the cornerstone of practically all virtual currencies. Thanks to them, this technology is developing considerably.

Like Cardano, which has created a layered blockchain supported by a Proof of Stake validation system, and although it is still in the testing phase, it seems to represent a notable improvement of the blockchain.

However, most experts dare to affirm that cryptocurrencies are only the tip of the iceberg in terms of the potential in the applications of blockchain technology.

 Finance and economics

The main use of the blockchain is financial since its creation arises to support the transfers of virtual currencies. For this reason, the first uses of blockchain technology in finance sector, which is where it has been most developed.<
The financial applications of the blockchain are multiple: automation of transfers, payments of rental income, or creation of exchanges.

Its advantages over traditional finance are also numerous:

They avoid fraud since the conditions are fixed in the smart contract and are obligatorily applied.

They increase confidence since they allow them to operate with more security.

They reduce risks, both for individuals and companies.

Fintech and banking

 Banks are increasingly applying technological solutions to improve their financial activities. This industry is known as Fintech or Financial Technology.

The union of fintech and blockchain is already something relatively common. Some studies highlight that 77% of fintech companies plan to adopt the blockchain as part of their systems and processes in two years. In the case of payment method companies, adoption increases up to 90%.

The advantages that the blockchain offers to the banking system lies in the automation of the process, which eliminates intermediaries and manual checks and translates into a considerable reduction in costs.

In addition, transfers made on a blockchain-based system also reduce times: All transfers, even international, would be resolved in a matter of minutes.

 Big data

 The blockchain does not stop being a huge ledger. A database that manages millions of daily transactions effectively and quickly. But it has a limitation: It does not have tools to analyze so much data.

The binomial that Blockchain and Big Data represent is the perfect combination to solve it. The tools offered by Big Data allow us to analyze all the data of a blockchain and obtain very useful information for companies.

For example, some utilities offered by Big Data applied to the Blockchain are:

• Security, since Big Data provides more instruments to detect potential fraud.
• Transparency, by being able to collect and classify all the information, allows it to be represented more accurately and clearly.
• Avoid risks, because it could detect risky operations.
• Provide data to financial companies, such as consumption patterns.

 Notaries

A notary is an official who signs contracts and documents and gives authorization. If the capacity of the blockchain to manage contracts, both public and private, is recognized by the government, it could eliminate the intermediary figure of the notary.

Contracts made on the blockchain are automatically authorized thanks to the miners. In addition, they are unalterable, avoiding bad practices, and are resolved automatically, which would eliminate, to a large extent, subsequent decisions in court.

 Digital signature and identity verification

Although popularly it may not get the recognition it deserves, identity verification is one of the cornerstones of blockchain technology.

If it is possible to create a secure and robust blockchain service that allows users to be identified, the use of the blockchain will be extended to a multitude of applications: digital signatures in notaries and banks, electronic check-in in hotels and tourist apartments, voting or any type of contract can be signed from any device.

Many are the startups that are developing this technology, such as Civic or the Niuron banking consortium. Once achieved, it will be able to support many of the blockchain applications.

 Logistics and Transportation

The field of commerce involves multiple agents and intermediaries: manufacturers, wholesalers, distributors, suppliers, courier companies, consumers.

The transport of merchandise between all these actors generates an enormous amount of documentation, mostly on paper. The application of digital technologies to this sector would reduce this paperwork, speed up the transport of goods, and considerably reduce costs. If this technology were the blockchain, the possibilities would multiply.

Blockchain-based applications in logistics could automate all document management, eliminating many of the intermediaries and offering information in a transparent, clear, and instantaneous way.

A blockchain logistics platform could be a collaborative agent in the sector and could put shippers in direct contact with carriers.

 Food and traceability

But perhaps the utility of blockchain in the logistics and transportation sector with the most potential is traceability.

The inalterability of the blockchain provides transparency, security, and trust to the data that companies provide in terms of traceability.

For this reason, many food companies have been interested in blockchain programs that ensure the origin of their food, giving consumers more confidence.

These solutions would be, for example, a BIDI code that would show the origin and distribution of the products in a matter of seconds.

 Insurance

The potential of blockchain in the insurance sector also lies in the appearance of smart contracts. In these cases, a smart contract could automatically execute a clause of the insurance contract, without the need for experts or legal problems.

In addition, due to this self-executing capacity of smart contracts, it allows solving insurance more transparently and fairly and without the need to reveal personal data or confidential information.

The potential that the insurance sector finds in the blockchain is focused on microinsurance, an area that they believe they can promote and commercialize thanks to the tools offered by the blockchain.

 Human Resources

The transparency and security that the blockchain transfers could lead to a transformation of the personnel selection processes.

A platform integrated into blockchain would guarantee the veracity of the candidates’ data. For example, it would confirm the identity and authenticity of titles, certificates, and references.

Likewise, a combination of blockchain technology with Big Data tools would allow a better analysis of the candidates to identify the one that best suits the job.

Furthermore, the potential of smart contracts could be applied to other tasks in HR departments, such as modifying contracts or automating payroll payments

Voting and elections

 If we consulted our politicians, they would surely ensure that it is impossible to rig some votes. And they never lie, do they?

What we can say is that a voting system on a blockchain would dispel all concerns, by providing an infinitely more secure platform.

In blockchain-based applications to manipulate a single vote, the entire blockchain would have to be modified. This would require excessive computing power. Nobody has that much computing power, not even Google or Facebook servers.

Furthermore, the use of blockchain technology could increase low voter turnout. Some of the voters do not go to the polls due to having to identify and align themselves with a party or simply due to laziness.

With future blockchain applications, voters can transfer their votes online and remain anonymous.

 Health and sanitation

The healthcare sector is also not shy of innovative blockchain applications. Currently, many technology companies are developing blockchain services for the healthcare sector. However, few well-known companies are employing these practical uses of the blockchain.

Some of the potential uses of blockchain in healthcare are:

• A check on the medical history of patients. The data could be shared between several medical centers, in a decentralized way and with immediacy and security.
• Confidentiality for the patient. Provided by blockchain encryption and security.
• Traceability and control of medicines. By integrating the blockchain in pharmacies, doctors would have absolute knowledge of drug consumption.
• Avoid fraud in medical policies and control bad practices in health services.

 Education

Currently, blockchain technology applied to education is still in the experimental phase. However, numerous studies, such as the one carried out by the European Commission, highlight that blockchain can transform the education sector.

Some of the innovative applications of the blockchain applied to education are:

• Creation of document sharing platforms with permissions, encryption, and systems to prevent theft and fraud.
• Issuance of certificates and official documents.
• Greater protection of intellectual property.

 Marketing

• Future applications of blockchain in marketing can seriously influence current SEO and SEM. That is to say, in the way that companies advertise their producers through the internet.
• Today, these services are concentrated in three major players: Google, Facebook, and Twitter. In other words, it is centralized.
• A decentralized platform could put the media in direct contact with advertisers and thus eliminate these intermediaries. The security and transparency of the blockchain would transfer more trust to said platform since its conditions would remain unchanged in smart contracts.
• In addition, the guarantee and immediacy offered by cryptocurrency transactions could be applied to online commerce, also transmitting trust and reaching a wider audience.

The post Major use cases of Blockchain appeared first on Blog Planet.

Among the most diverse market sectors, the benefits of adopting blockchain technology are considered to be more prevalent in financial institutions and sectors. But before we delve into the benefits of this technology, let’s take a quick look at what it is.

 A quick look at blockchain technology

Blockchain technology is a decentralized and distributed ledger that keeps track of transactions for a digital asset. It works only in digital mode and has no central authority to regulate or supervise the movements of the system.

The blockchain also has many copies of a ledger – or list – of transactions on the network. Due to its distributed characteristic, it allows new transactions to be transmitted to a wide variety of network users. It is so powerful that it can operate and perform its complex operations autonomously.

The blockchain is also immutable, meaning it is practically impossible to change or even delete a transaction. This powerful feature also prevents false information from being included in the transaction.

Compromising a blockchain requires changing all copies of the ledger in all possible locations. Just imagine trying to hack into thousands of computers at the same time. This is also the unique technology behind today’s main cryptocurrency, bitcoin (BTC).

Here are some ways that blockchain technology can transform finance and banking.

1.Reach non-bankers using cryptocurrencies

Although traditional banks are present in almost every part of the world, there is still a huge portion of the population that does not have access to the financial services they offer. This reality is present in some African countries and India, to name but a few.

Blockchain technology solves this problem by enabling financial inclusion with the use of cryptocurrencies such as bitcoin. As cryptocurrencies are digital currencies and accessed by personal computers and smartphones, sending and receiving money becomes a much easier task.

There is no need to face the hassle of applying for a bank account and going through the monotonous and complex processes of traditional financial service providers. 

2.Offer more transparency

Blockchain is considered to be one of the best technologies for tracking a transaction trail. Distributed ledger technology (DLT) technology – or the digital system – records the details of asset transactions simultaneously and in multiple places.

The transaction ledger works like the register book of a traditional bank, only in the digital universe. Everyone on the network can see the details and history of transactions, which increases transparency and accountability.

Thanks to this excellent capacity for transparency, the powerful applications of blockchain technology are not limited to the worlds of finance and technology. Its benefits have also reached other sectors, such as philanthropic institutions and non-profit organizations. Thus, donations in bitcoin and other cryptocurrencies are more accessible and traceable.

3. Enable safe and reliable payment alternatives

Another great feature of blockchain technology in finance is its ability to offer safe and secure transactions. Traditional payments are usually made by cash, check, or bank transfer, among other methods. While many consider these payment options to be safer, each of them involves risks.

Take, for example, money issued by a national monetary authority. As it is printed, your ballots can be forged. The same goes for checks, which often do not have the corresponding account balance. This is a very common fear of every merchant, the famous bad check.

With blockchain technology, payments are irreversible. Companies can avoid receiving bad checks and problematic electronic payments, as blockchain limits the possible forms of fraud and online scams.

4. Facilitate fast and direct international transactions

In addition to the security that blockchain technology offers merchants when completing payments, it also allows for faster and cheaper transactions. Generally, funds are sent or received by commercial banks, money sending centers, credit card processors, and other possible third-party networks.

Each transaction made by any of these service providers usually takes a day or more to be processed and includes several transfer fees. With blockchain, financial transactions have no geographical limitations, as they do not go through traditional means.

The best part of this is that transactions can be completed almost instantly. Since payments do not go through traditional methods, there is no need to worry about holidays, weekends, and business hours. It is possible to send and receive money 24 hours a day, seven days a week in almost any part of the world.

5. Enable secure identity and personal data checks

Verifying the identity and personal data of customers is probably one of the most crucial activities that every company and institution needs to carry out accurately. Banks and other financial service providers are responsible for checking and confirming whether or not their customers or service users are involved in fraudulent transactions and activities.

Money laundering is one of these criminal activities and is becoming more and more frequent today. Maintaining solid security measures like these requires a lot of money. But with the power of blockchain in finance, all of that burden imposed on banks and related services can be reduced in costs.

Using blockchain-based systems to perform these operations can avoid the expensive fines imposed by regulatory authorities when banks fail to properly check users who take advantage of the system’s vulnerabilities to commit crimes.

 Is it the future of the world economy?

During the last decade, there has been an intense debate in the world about the use of blockchain technology in the economy and its revolutionary importance in terms of ensuring security, protecting user data, and the speed of online transactions. Recently, this debate has gained momentum as companies and institutions in the private and public sectors have advanced in exploring the applications of blockchain technology in other areas of the economy and society.

Therefore, it is to be expected that blockchain technology will contribute shortly to change business models in many sectors, such as health, finance, energy, or public services.

Among other things, blockchain technology can become one of the important technological catalysts of the fourth industrial revolution, which will lead to the so-called 4.0 economy, in which the production process is carried out by “smart factories” within “chains intelligent supply systems ”which are cyber-physical systems connected by the Internet.

Blockchain technology outside the financial universe

The robust digital solutions made possible by blockchain technology are not limited to the universe of banks and financial institutions. With the growing interest outside the financial or technology sector, the gradual adoption of blockchain in various fields has become increasingly evident.

This excellent digital solution can still offer many benefits to the most diverse areas, from health care and supply management to cybersecurity and public administration. It will come as no surprise if we start to see in the coming years the great benefits of blockchain being employed in various sectors around the world.

The post How Blockchain Technology is Changing Finance appeared first on Blog Planet.