Thanks to the rise of cryptocurrencies, more people are starting to see what blockchain can bring to the table. While mainstream adoption may still take some time, the technology is becoming relevant across different sectors.
As more businesses start to adopt blockchain in their operations, it is expected that blockchain will eventually revolutionize our transactions and the global financial system as a whole.
Other than being the building block of Bitcoin and other digital currencies, blockchain’s wide range of uses holds a lot of promise. Since data entries in this digital ledger are fixed and maintained by a peer-to-peer network, blockchain can address privacy concerns, eliminate discrepancies in databases, and fix other notable issues.
To help you see its true value, this infographic will discuss real-life problems that the technology can solve.
People who have just entered the world of cryptocurrency tend to think that digital currencies and blockchain technology are the same things. While this mistake is highly understandable due to the correlation of the two, it is important to set distinctions between the two. Cryptocurrencies such as Bitcoin make use of blockchain technology. Blockchain is a digital ledger of transactions that is maintained and distributed among several users.
It can record relevant information (e.g., transaction time, exchange amount, and other personal details) and link them to build verified sets of data. Through proper encryption, each entry is authenticated, secured, and distributed to the public for transparency.
From Digital to Real Life: 7 Problems Blockchain Can Solve
Thanks to its capabilities, blockchain enables crypto enthusiasts to invest and trade securely. As its popularity continues to grow, take some time to know how this innovation is being used beyond trading and investing. To start things off, this guide will discuss seven industries with problems that blockchain can address.
1. Supply Chain/Logistics
Companies from large-scale industries (e.g., automotive, food, pharmaceutical, etc.) will significantly benefit from blockchain. Since they constantly purchase and sell goods to different parties, utilizing the technology will help them keep track of their operations.
Being able to monitor orders, track invoices, and enter payment details seamlessly from start to end will ensure that all responsibilities are accomplished, and verifiable from the single source of truth that is the blockchain.
Blockchain is being used to optimize accounting processes. Through blockchain, accountants can easily verify the ownership of assets and record entries with ease. In turn, blockchain solutions can help organizations reduce their operating expenses while decreasing the workload of teams.
While blockchain can keep track of financial transactions, this does not mean that the technology will take over the job of accountants. The technology may be evolving at a rapid pace, but essential tasks such as auditing must still be done by a certified professional. All things considered, blockchain technology should be seen as a supplemental tool.
3. Social Media
Social media platforms are free to use for anyone. This is because the personal information you provide online along with the content you post and consume there are the products. To counter this, blockchain in social media is more about data ownership and protection. While blockchain can also provide data security, it empowers users and lets them take back control of their data.
Users are the direct owners of the content they create via blockchain-based social media networks, therefore, the user can choose to profit off of the data they generate instead of a tech giant like Facebook letting you use their platform for free because they profit off of you.
Fraud is a highly prevalent issue in the insurance industry. People who require financial relief may look for loopholes in their policies and resort to unethical tactics to acquire money. This is precisely why proper documentation of records will be vital for both clients and service providers.
Since blockchain entries cannot be tweaked so easily, the technology can ensure fairness between both parties, especially with claims.
A person may need the services of more than one healthcare provider in their lifetime (e.g. pediatrician as a child, internal medicine doctor as an adult, and an obgyn when pregnant for women). With this, blockchain technology can provide a universal and unified source of truth that all healthcare providers can use with ease, instead of trying to gain access to each healthcare provider’s walled garden of information.
6. Public Service
Documentation errors are a common problem in public offices. Since thousands of files are kept in different drawers, disorganization can give the employees—as well as citizens in dire need of their services—a difficult time. The good news is blockchain can address this concern through the secure digitization of files.
Blockchain’s capabilities allow workers to securely digitize physical records; automatically navigating documents will also prove to be useful for processes such as elections and citizenship applications.
Overall, blockchain technology can eliminate insider and cybersecurity threats within organizations. Since the entries in a ledger can only be accessed by authorized employees, this can greatly reduce the risk of a database leak. In case an unauthorized individual attempts to manipulate an entry, everyone in the network will be immediately notified of this change.
The Future of Blockchain
With the points above in mind, it’s clear that blockchain’s features can go beyond the world of cryptocurrency, trading, and investing. Understanding how it can impact different sectors will give you a better idea of what the financial landscape and certain industries may look like in the not-too-distant future.
If you want to learn more about blockchain or are looking for an easy Bitcoin guide for beginners, you’ve come to the right place. Head on over to CoinGeek to start your crypto journey!