What Are the Applications and Use Cases of Blockchains? Since its inception, blockchain technology has rapidly outgrown its original ambitions and goals. However, there is also a lot of hype that still surrounds this new kid on the block.
And one of the biggest questions being asked out there is; what are the applications and use cases of blockchains? The good thing is that you only need to look around you and you will have an answer to this question.
Blockchain technology can be used in almost all scenarios where intermediaries are involved. In fact, the most compelling applications and use cases of blockchains are in areas where trusted intermediaries are required to record,verify, validate, and reconcile all transactions that take place.
What Are the Applications and Use Cases of Blockchains?
Read on to find out some of the interesting applications and use cases where blockchain technology is currently being implemented.
Perhaps, this is the most well-known application of blockchain technology in the modern world. Bitcoin is one of the digital currencies powered by blockchain technology that has revolutionized the way people transact.
Today, parties can easily transact with each other without involving a bank, thanks to blockchains. For instance, an individual sitting in the United States can transfer bitcoins to someone else based in the United Kingdom without intervention from any bank.
This is another exciting use case of blockchains in the financial services sector. Using blockchain technology, liquid assets can now be converted into its respective tokenized form and cheaply fractionalized,traded, and settled on a chain other than through third parties. This provides an exciting opportunity for small business owners to unlock liquidity for their enterprises.
Due to the application of blockchain technology, access to investments that were previously only accessible by big financial investors is now possible for retail investors.
Asset tokenization removes all the barriers that hinder free trading of assets on global markets. This allows investors to diversify their investments and enjoy access to new markets that could not be possible without blockchain technology.
The primary goal of smart contracts is to allow companies and individuals to create secure digital relationships. For instance, a blockchain smart contract could underpin an insurance agreement or a complex legal transaction.
This is possible since blockchain technology eliminates the need for intermediaries making such processes more secure and cheaper. Smart contracts seek to use the information stored in blockchains to support complex agreements.
Blockchain technology has also been deployed in the health sector to secure patient records and medical history. When a patient visits another doctor, the previous doctor can directly share the patient records with the new doctor on the blockchain.
The most significant advantage of deploying blockchain technology in the health sector is that it eliminates the need for a centralized portal where the records are stored. Therefore, the cost can be lowered significantly. Health records stored on blockchains include the medical history of a patient, lab reports and diagnostic information.
Blockchain technology is quite powerful, and it possesses the potential of being deployed in many industries. This article highlights some of the applications and use cases of this technology to address the common question;”what are the applications and use cases of blockchains?”
The ongoing revolution of blockchain is something that may transform our lives in the future. With millions of dollars being directed to research, it is only a matter of time until blockchain technology starts to play a significant role in every aspect of our daily lives.