Beyond its most well-known application in cryptocurrencies, blockchain also has a lot of real-life applications across multiple sectors.
Here are 8 different applications all pertaining to different sectors, each with an explanation of their significance:
Applications For Blockchain Technology in Supply Chain
Blockchain can track the entire lifecycle of products, ensuring transparency and reducing fraud by recording every transaction, from raw material sourcing to distribution.
Blockchain technology can bring about significant improvements in the supply chain of a food substance for a company. The complex and multi-stage nature of food supply chains makes them prone to issues such as fraud, contamination, and lack of transparency.
In the case of food safety, the impact a blockchain has on the management and distribution is very important.
By recording and verifying the flow of goods, it helps detect and prevent food-borne illnesses, which can cause serious problems for people and a company’s reputation.
If a foodborne illness outbreak happens, the traditional supply chain may be slow to find the source of contamination. This can lead to more people getting sick and hurting the company that caused the problem.
However, with blockchain, the process becomes swift and precise. Every step in the production and distribution of a food substance is recorded in real-time and records can be accessed by everyone and anyone looking for it.
It is also impactful in other sectors as well such as the pharmaceutical and health industries.
See also: Exploring the Features of Blockchain Technology and 6 Real World Uses
Application of Blockchain Technology in the Gaming Industry
The gaming industry is one of the most rapidly growing industries in the world, and blockchain technology is set to transform it.
With the introduction of monetization of in-game assets, gamers are now able to sell and buy these assets directly from their fellow gamers in-game without relying on the presence of the host, which in this case can be the game development company.
Here are some specific examples of how blockchain is being used in the gaming industry:
Enjin: Enjin is a platform that allows developers to create and manage in-game items on the Ethereum blockchain. This allows players to own their in-game items as non-fungible tokens (NFTs), which can be traded and sold on secondary markets.
Sorare: Sorare is a fantasy football game that uses blockchain to track the ownership of player cards. Players can buy, sell, and trade these cards, which are represented by NFTs.
Axie Infinity: Axie Infinity is a Pokémon-inspired game that allows players to collect, breed, and battle creatures called Axies. Axies are represented by NFTs, which can be traded and sold on secondary markets.
See also: Top 5 Blockchain Gaming Companies Leading The Charge
Application of Blockchain in the Music and Art Industry
Copyright enforcement is another important issue for artists.
In the music industry, blockchain technology can be applied to create a digital ledger of copyright ownership, which can help to make it easier for artists to track and enforce their copyrights.
Also, artists can mint their work on a blockchain as an NFT, which can help to track the provenance of their work and enforce copyright regulations which is harder with traditional methods, and streaming platforms can be able to distribute royalties more efficiently.
Provenance tracking is important for artists because it helps to ensure that their work is not being copied or distributed without their permission.
A good example of the application of blockchain technology in the music industry is the NFT music platform, Sound.xyz which allows artists to place their work on their platform and directly gain royalties and other benefits without any external intervention.
See also: Sound NFT Music Platform Secures $20 Million Funding
Application of Blockchain in Real Estate Sector
Real estate transactions often involve numerous intermediaries, leading to opacity in the process, and, due to the complicated measure of closing deals in the real estate sector, many issues arise along the way.
The application of blockchain technology in this sector can do a huge deal of favor to both parties.
Smart contracts can be used to streamline real estate transactions by reducing paperwork, fraud, and the need for intermediaries.
Smart contracts can also be used to reduce fraud in the system with its tamper-proof feature, meaning no entity can be able to manipulate the terms and conditions embedded in a contract at a certain period of time.
Finally, the application of blockchain in the real estate sector allows transparency and ensures that all parties involved have access to the same verified information.
See also: Metaverse Real Estate Agent: Guide To Getting Started!
Application of Blockchain in Academic Credentialing
The verification of academic credentials is important because they are often used to verify qualifications and eligibility for jobs, scholarships, and other opportunities.
This is because blockchain is a secure and transparent ledger that records transactions in a way that cannot be tampered making it difficult for people to forge their academic credentials.
By using blockchain to verify academic credentials, employers and educational institutions can be confident that they are authentic and that the holder has the qualifications they claim to have.
See Also: Blockchain Data Engineer: Important Roles, Challenges, and Tools In 2023
Application of Blockchain in Finance and Banking
One of the most notable applications of blockchain is in the Finance sector. Right from the introduction of cryptocurrencies, the central banks of many First World countries have been looking at ways to leverage blockchain technology to improve efficiency and reduce costs.
Some of the areas where blockchain is being used in finance include:
- Payments: Blockchain can be used to create a more efficient and secure payment system. For example, Ripple is a blockchain-based payment network that allows banks to transfer money between each other more quickly and cheaply than traditional methods.
- Trade finance: Blockchain can be used to track and manage trade finance transactions. This can help to reduce costs and improve efficiency. For example, TradeLens is a blockchain-based platform that is being used by major shipping companies to track and manage the movement of goods around the world.
- Regulatory compliance: Blockchain can be used to help financial institutions comply with regulations. For example, IBM is working with the Bank of Thailand to develop a blockchain-based system for tracking financial transactions.
- Fraud detection: Blockchain can be used to detect fraud in financial transactions. For example, Guardtime is using blockchain technology to help banks detect money laundering and other financial crimes.
Application of Blockchain in Personal Data Monetization
The application of blockchain in personal data monetization indulges certain individuals with the sales or distribution of their personal data for tests, analysis, or marketing purposes.
In simple words, a certain select group of people can choose to participate in data monetization programs, which gives some organizations access to unlimited information about themselves.
Usually, this is done without the consent of individuals when they log on to certain applications or websites or use a particular product or service.
But, with the application of blockchain systems, the process can now be regulated by the owners and data can be exchanged reasonably by two entities.
Participating in personal data monetization through blockchain in a different way encourages advertisers and researchers to engage in a more ethical and transparent manner since they are now required to obtain consent before collecting anyone’s data carelessly.
See also: How Does Blockchain Support Data Privacy?
Blockchain Applications in Voting Systems
In 2018, Sierra Leone conducted the first-ever blockchain election to elect their president. The election was only conducted in a certain region of the country to test the potential of generating accuracy and credibility on a blockchain.
It was also publicly predicted that the future of voting and elections 50 years from now will rely on blockchain technology due to its massive adoption.
The application of blockchain in voting systems can enhance security, accuracy, and transparency in elections, minimizing the risk of manipulation and fraud.
See also: How Does Blockchain Support Data Privacy?
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