Most Compelling Blockchain Use Cases
You definitely heard about blockchain whether you know or not about it. A blockchain is a decentralized electronic blockbook, distributed, and often public, for tracking transactions across many machines so that no records involved can be retroactively changed without changing any subsequent blocks. But even if one knows what blockchain is, one big question remains: What are the use cases of blockchain in the company?
We need to understand hash trees to understand blockchain itself.
Hash trees are data structures that are based on data encryption. In order to maintain data integrity in a pair-to-peer computer network during data transfer, they are crucial. The hash string is developed with the use of hash function. Such randomly generated strings with a fixed length are encoded at the destination so that no false data transfers.
Bitcoin was created in 2008 by a group of people (or a person named Satoshi Nakamoto) using Blockchain, a breakthrough. Blockchain is a distributed and decentralized network of nodes.
Let’s have an overview of blockchain technology & its use cases in different sectors.
Overview Of Blockchain Use Cases in 2019
In healthcare, blockchain technology allows a number of stakeholders to make sure that they have access to a single source of truth when each contact with the patient data can be reported as a transaction with a time-stamped audit trail on a ledger. Patient access to health information is secured. And inefficiencies got removed with current data management practices and patients are able to control their health data more effectively.
For example, Medicalchain is an example of health data exchange platforms.
Supply Chain Management
The second case of blockchain’s use is supply chain management. The most convincing case of blockchain. The topic of accountability is one of the major problems facing businesses in the management of their supply chains. Blockchains provide a single source of reality for multiple parties to access a server. Recorded transactions are unchanging, just add up and provide an audit trail with time stamps. Blockchains allow a commodity to track in real-time when its origin and all its touchpoints shift from its original source.
Blockchain technology helps to improve transparency in an otherwise anonymous network, helps to stop falsification and theft, improves regulatory compliance, decreases complexity and significantly reduces costs. Blockchains, in the consumer’s view, can enable consumers to know exactly whether products are what they claim to be.
The role that it can play in decentralizing the energy market, which is typical of a few big companies in each country, is another compelling case of blockchain technology. Blockchain technology makes it possible to register, share and install smart electricity from an individual’s solar panels in a community. It allows individuals to be both energy producers and users. It reduces costs and improves efficiency by not relying on a centralized grid.
The decentralized nature of blockchains means that hackers have no central vulnerability that can be a good case for manipulating their digital identity. For identity verification, a self-supported ID can be used without a person producing multiple documents and paperwork whenever they need to verify their identity. The Digital ID can also collect other online information on the identity of a user. Such as social security, medical documents, and social media credentials. This can enable users to control their private data more securely online. However, it is more important than it takes away company power to monetize this information and restores user control.
The application in financial services is one of the most exciting applications and in general in financial and real estate asset tokenization. Using blockchain technology, previously illiquid resources can now be transformed in their token form and split into a chain cheaply and efficiently (instead of the long process of clearing and settlement by third parties as clearings). Acquisition eliminates friction. This increases liquidity and the value of assets otherwise not traded effectively and helps asset holders to gain a liquidity premium.
These use cases of Blockchain technology is capable of transforming the world by allowing people to secure digital relationships. Blockchain has emerged as a technology that has changed and will take the world by storm on an exciting journey for that technology.