Basically, the term blockchain was first became popular when people got to know about Bitcoin cryptocurrency. But it has a problem to mix up with Blockchain tech and Bitcoin. There is a misconception among people that Bitcoin is Blockchain. In a sense, Bitcoin uses Blockchain technology to run.
While the idea works extremely well for Bitcoin and other cryptocurrencies, there are loads of other useful applications of blockchain technology. Here are 10 of them.
1. Financial exchanges
Many companies have already started using cryptocurrency exchange using Blockchain technology. Using Blockchain allows them faster and less expensive transactions. Thanks to the decentralized cryptocurrency exchange that doesn’t require the investors to deposit their assets with the centralized authority. This authority helps them to have greater control and security. While blockchain-based exchanges primarily deal in cryptocurrency, the concept could be applied to more traditional investments as well.
2. Money transfers
The original concept behind the invention of blockchain technology is still a great application. Using blockchain transfer is less expensive and faster than existing money transfer services. This is especially true of cross-border transactions, which are often slow and expensive. Even in the modern U.S. financial system, money transfers between accounts can take days, while a blockchain transaction takes minutes.
To execute collateralized loans through smart contracts, Lenders can use blockchain technology. Smart contracts built on the blockchain allow certain events to trigger certain things automatically like service payment, margin call, full payment of the loan and release of collateral. This results in the loan processing a lot faster and less expensive. The lenders also can offer better rates.
Using smart contracts on a blockchain can provide greater transparency for customers and insurance providers. Recording all claims on a blockchain would keep customers from making duplicate claims for the same event. Furthermore, using smart contracts can speed up the process for claimants to receive payments.
5. Real estate
Real estate transactions require a ton of paperwork to verify financial information and ownership and then transfer deeds and titles to new owners. Using blockchain technology to record real estate transactions can provide a more secure and accessible means of verifying and transferring ownership. That can speed up transactions, reduce paperwork, and save money.
6. Secure personal information
Keeping data such as your Social Security number, date of birth, and other identifying information on a public ledger (e.g., a blockchain) may actually be more secure than current systems more susceptible to hacks. Blockchain technology can be used to secure access to identifying information while improving access for those who need it in industries such as travel, healthcare, finance, and education.
The gambling industry can use blockchain to provide several benefits to players. One of the biggest benefits of operating a casino on the blockchain is the transparency it provides to potential gamblers. Since every transaction is recorded on the blockchain, bettors can see that the games are fair and the casino pays out. Furthermore, by using blockchain, there’s no need to provide personal information, including a bank account, which may be a hurdle for some would-be gamblers. It also provides a workaround for regulatory restrictions since players can gamble anonymously and the decentralized network isn’t susceptible to government shutdown.
Blockchain is in its infancy
Blockchain technology has only been around for a dozen years, and businesses are still exploring new ways to apply the technology to support their operations. With the growing amount of digital data used in our lives, there’s a growing need for the data security, access, transparency, and integrity blockchain can provide.