Blockchain Use Cases
Blockchain technology has gone far beyond its core concept and is now used in nearly every industry, including supply chain management, fundraising, insurance, global trade commerce, secure personal identity, and many others.
Not all organizations employ blockchain technology, but those who do, use its potential to beat the toughest challenges of procedural delays, human error, intermediation, etc. So, if you are a business owner, and you currently need to streamline your business process, incorporating blockchain would serve as a key solution to your problems.
Why a sudden hype for blockchain? In fact, blockchain isn’t overhyped, and it’s no longer a fringe novelty of crypto enthusiasts. The technology has gone far beyond the financial sector and continues to benefit various industries around the globe. In practice, there are many different types of blockchains being developed.
The Deloitte’s Global Research Survey suggests that this year, nearly 1,500 senior executives working in capital markets, industrial IOT, infrastructure security, global trade, and many more consider blockchain to be an ultimate tool to drive their organizational innovation.
Another research estimates that by the end of 2020, nearly 60% of CIOs will have blockchain integrated into their infrastructure. Accordingly, it follows that blockchain technologies can improve almost every business in every country.
In this guide, we are going to focus on the blockchain use cases and consider the main benefits of business digitalization.
So, What is Blockchain?
The term typically refers to a decentralized, distributed ledger used for logging transactions, tracking, and securing assets without the need of a financial intermediary, such as a bank. Technically, a blockchain can be described as a shared database filled with digital pieces of information called blocks.
Blocks store the primary information about transactions, such as date, time, and purchase amount, and are bound together using strong cryptography techniques. To give you a clearer idea, imagine a strongly encrypted Google Document, in which each entry in the sheet depends on the previous, and only trusted network partners are allowed to create entries and access them.
The following are the main benefits of using blockchain in any industry:
- Decentralization. Blockchain is not owned by a single entity; instead, it allows every network user to become one independent payment processor.
- Transparency. Anyone participating in the blockchain can see, share, and track transactional data.
- Enhanced security. Blockchain has strong authentication and cryptographic mechanisms that provide secure and reliable decentralized solutions.
- Immutability. Only new blocks can be added, and no existing blocks can be removed or modified.
- Efficiency. In centralized systems, transactional processes require lots of time and effort, while in blockchain technology, most transactions can be settled within a matter of seconds.
Many business owners around the globe point out that blockchain technology helps them to reduce costs, improve operational efficiency, build trust, and secure finances.