Despite popular belief that blockchain technology is only used to conduct cryptocurrency transactions and earn bitcoins, blockchain is making inroads into many areas of life, including social media, gaming, healthcare, real estate, and others. The technology aims to improve work efficiency, lower business costs, and improve customer experience.
Blockchain is a digitalized database that belongs to digital ledger technology (DLT), which means that there is no central data store or administrative functionality. Why is it advantageous to a business? Decentralization, in conjunction with transparency, allows each participant to view all recorded data, ensure its security, and track important information.
Here are some of the areas where blockchain has already made an impact and proven that it is a reliable technology.
Supply chain management, for example, is a critical but vulnerable component of many businesses’ workflow. Participants in the process frequently do not interact directly with one another and continue to use paper-based methods of information collection and storage.
Blockchain allows for the complete elimination of paperwork: document flow is automated, and digital certification is used. More importantly, each authorized supply chain member can track the product from the manufacturer to the consumer and prevent counterfeit distribution.
Several American retail behemoths that have experienced outbreaks of foodborne illnesses and subsequent food recalls have implemented blockchain technology in their food supply chains. Previously, tracking one product took at least seven days, but now a food item’s provenance can be determined in a matter of seconds.
As a result, blockchain solutions made the recall process faster, more efficient, and cost-effective. Customers have also noticed blockchain adoption in their hypermarkets. They can scan the QR code in Walmart’s Chinese stores, for example, and get all the information about the product, from the farm location to the inspection certificates.
Healthcare is one field where blockchain-based solutions have proven to be a highly secure and transparent method of storing electronic health records (EHR). Both doctors and patients are given permission to access and use the records as needed.
At the same time, blockchain solutions are powered by smart contracts, which ensure the privacy of EHR data. Data from healthcare devices and clinical research are encrypted, and insurance can be executed and stored as well. Another application is prescription medication and equipment supply chain management.
Blockchain technology is becoming increasingly important in e-commerce. Again, the supply chain is critical: monitoring goods and managing supplies are often difficult tasks, but blockchain allows businesses to manage their inventory more efficiently. Consumers who entrust their money and data to e-commerce organizations are concerned about data security and transparency, but blockchain development can address this issue. On a blockchain, even minor changes in transactions are visible, and tracing who made a mistake is no longer a problem. It is also possible to make cryptocurrency payments.
The following topic is actually about cryptocurrency transactions. DeFi, short for decentralized finance, refers to more complex financial use cases as well as simple asset transfers. The use of blockchain contributes to the elimination of intermediaries and, as a result, lowers costs. All transactions are encrypted and immutable, and multi-step authentication mechanisms make it difficult for unauthorized users to gain access to the system. Among the most recent innovations is the ability to use peer-to-peer lending services and digital banking.
Blockchain has the potential to impact social media as well. Social media, despite its global popularity and ability to connect people from all over the world, is still vulnerable to account hacking, identity leakage, and copyright infringement. To address these concerns, blockchain technology provides author rights protection, digital identity verification, and unbiased licensing.
Real estate, eGovernment, gaming, and other industries have all jumped on the blockchain bandwagon. Once your company has decided to embrace innovation, delegate technology implementation to one of the enterprise blockchain companies that will create a future-proof enterprise DLT for you. Your company’s use of blockchain will alter the rules of the game in your industry.