Blockchain, the technology underpinning the cryptocurrency, NFTs, and metaverses, has garnered significant attention across many business verticals. Bitcoin and Ethereum are no longer buzzwords. Various industries besides fintech have leveraged blockchain technology to streamline their business processes. Blockchain development which entails building, designing, and maintaining blockchains, has created opportunities for many aspirants.
This blog delves into the various real-world business applications of blockchains and how organizations are benefiting from them.
Let’s get started.
When it comes to blockchains, the first industry vertical that we think of is fintech. Blockchains can offer smooth and hassle-free loan processing. When you engage with banks and financial institutions to get loans. First, the lengthy KYC process; second, the long waiting period for its approval and finally, sometimes lenders might have a personal bias towards the loan seeker.
Blockchains ease the process and eliminate these inherent inefficiencies. They operate through a smart contract which is a set of code statements that automatically run when certain conditions are met. In a normal scenario, you require a third party or an intermediary like the bank to process your loan.
With smart contracts, the lender and seeker can agree to the payment terms without the need for an intermediary. The smart contract records and validates the transactions, resulting in quicker verification of the loan seeker and faster loan disbursal.
In the age of the ever-expanding internet, it becomes imperative for artists to secure their art, music, or other creations as someone else might infringe on their ownership. Though companies like Google and Meta have their verification systems, they aren’t entirely secure. Blockchains can resolve this problem.
Digital assets like videos, music, or artwork can be stored in the blocks of the blockchain, which offers them immutable ownership and allows artists to earn profits from their creations even if it changes multiple hands. Blockchain ensures that no third party can claim ownership of these digital assets.
Move Toward Ensuring Customer Loyalty
Retail businesses try their best to retain their customers. That said, rewarding your customers to gain their loyalty is a great idea. Customer loyalty programs are a drive in this direction. And blockchains, in the way of cryptocurrencies, help achieve this in an easier manner.
Cryptocurrencies offer a secure way to transact and help people store their crypto assets in a convenient, easy-to-use digital wallet. Moreover, cryptocurrencies operate faster as they don’t require a third party’s approval, and also, the transaction processing speeds are very high. Cryptocurrencies like Bitcoin and Ethereum can offer a great means to enhance customer loyalty.
Supply Chain Processes
The supply chain cycle involves numerous stages, and the processes need to be carried out efficiently and quickly. Goods have to be transported to various points, and it becomes more difficult with increasing demand.
Besides, there are chances that goods are lost or misplaced during any of these stages, and become difficult to track. Blockchain comes to the rescue. How? Well, with blockchains in place, anyone can trace the movement of the product from the source to its destination (customer). All the people involved in the supply chain processes use blockchains to reduce delays and eliminate human error. In addition, as it removes the intermediary, the risk of any fraudulent activity is also averted.
Securing Medical Information
Blockchain development has enabled doctors and medical professionals safely store and keep up-to-date medical records of patients. When a blockchain network is in operation, a patient who had consulted a doctor in New York could have their records updated when they see another doctor in Paris. Blockchain technology ensures that the data is accurate and updated. Most importantly, it guarantees the security of confidential medical records.
Safeguards Internet of Things (IoT) Networks
Smart air-conditioners and TVs have made our lives much easier. And the Internet of Things is the technology underpinning them. However, they aren’t entirely secure. Blockchains help store passwords of these networks on decentralized servers, thus offering greater protection than in a centralized server.
Voter fraud has always been a concern. However, with the immutable nature of blockchains, voting can become more transparent, and regulators will easily notice any tampering.
The issue with wills or inheritance often becomes worrying as there’s always the fear of someone meddling with it. However, you can turn paper wills into digital assets and store them on the immutable blockchain. It uses smart contract functionality, which makes your documents legally valid and clear on who will inherit your property post your death.
Real estate title deeds and ownership information can be maintained on a blockchain that makes tracing and verifying ownership easier. It gives a clear picture of legal ownership and eliminates paper assets.
Blockchain development has transformed the way businesses work. Apart from fintech, blockchains have spread their influence to other verticals, too. From healthcare to supply chain and real estate to the retail sector, blockchains have carved a niche. They have already become an integral component of business processes and applications.