The digital transformation of global economy, although fast-paced, was propelled onto a mush faster superhighway with the advent of COVID 19 pandemic that altered the shape and size of many a business enterprise bringing digital payments closer home.
As such, we see an increased digital economic activity around us brought about by billions of daily connections made possible by the internet thus making the blockchain technology gain prominence.
As blockchain penetrates other industry segments, it has attracted billions of dollars in investment. Here are some intriguing utility scenarios of blockchain implementation.
- Money Transfer: Hassle-free money transfer is the most well-known use of blockchain technology. Cryptocurrencies like Bitcoin are gaining popularity since money transfers can take place without the involvement of any bank. Anybody from anywhere in the world can transfer you bitcoins without any bank getting into the picture. Finance firm Banco Santander introduced the world’s first blockchain-based money transfer service way back in 2018.
- Smart Contracts: These blockchain applications are contracts that are automatically executed without an intermediary once the conditions written into the computer code are met. Smart contracts are now a staple in healthcare, real estate, education, trade and even for government agencies. For instance, BurstIQ used Big Data-based smart contracts to facilitate the transfer of sensitive medical data between patients and doctors. The application of blockchain technology in smart contracts is facilitated in the form of:
- Smart insurance contracts
- Supply chain administration
- management and recording of financial data
- copyright oversight
- tracking of clinical trials
- transfer of property ownership
- Blockchain Logistics
A major complaint in the shipping industry is the lack of communication and transparency due to the large number of logistics companies crowding the space. According to a joint study by Accenture and logistics giant DHL, there are more than 5,00,000 shipping companies in the US causing data management and transparency issues. The report goes on to say blockchain can solve many of the problems plaguing logistics and supply chain management.
Blockchain technology can also make the logistics process leaner and more automated, potentially saving the industry billions of dollars a year. Blockchain is not only safe, but a cost-effective solution for the logistics industry.
For instance, shipping giant DHL is at the forefront of blockchain-backed logistics using it to keep a digital ledger of shipments and maintain integrity of transactions.
- Blockchain For Good Governance
One of the most surprising applications for blockchain can be in the form of improving governance.
Blockchain can secure government documents, improve bureaucratic efficiency, accountability and reduce massive financial burdens.Blockchain may also revolutionize our elections. Blockchain-based voting could improve civic engagement by providing a level of security and incorruptibility that allows voting to be done on mobile devices.
The Maharashtra government has already started using a system based on blockchain technology for caste certificate validation.
Conclusion
These applications of blockchain technology highlight the potential of blockchain technology in revolutionizing our lives.
By utilizing blockchain technology’s transparency, security, and immutability, businesses engage in fair trade and provide customers with dependable goods and services
About Author
Manoj Dharra
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