Despite the popular belief that blockchain technology is designed only to perform cryptocurrency transactions and earn bitcoin, blockchain continues to enter many areas of life: social media, gambling, healthcare, real estate and more. The technology wants to improve work efficiency, reduce costs for businesses and improve the user experience.
Blockchain can be explained as a digitized database and belongs to digital book technology (DLT), which does not involve central data storage or administrative functionality. Why is this an advantage for the company? Decentralization, together with transparency, gives each individual participant the opportunity to review all recorded data, ensure its security and monitor important information.
Here’s an area that blockchain has already entered and proven to be worth relying on this technology.
For example, supply chain management is a major but vulnerable part of the work process of many companies. The parties involved in the process often do not communicate directly with each other and still apply paper-based data collection and storage methods. Blockchain offers complete paperwork removal: document flow becomes automated, digital certification is also used. More importantly, any authorized member of the supply chain can monitor the product from producer to consumer and prevent the distribution of counterfeit products.
Several U.S. retail giants, faced with an outbreak of food-borne diseases and further food recalls, have implemented blockchain technology into their food supply chains. Previously, tracking a single product took at least 7 days, and these days the origin of a food product can be identified in a matter of seconds.
Thus, blockchain solutions have made the recall process faster, more efficient and cost-saving. Meanwhile, customers have also experienced the adoption of blockchain in their hypermarkets. For example, in Chinese Walmart stores, they can scan a QR code and get all the product information: from the location of the farm to the inspection certificate.
Healthcare is an area where blockchain-based solutions have established themselves as a very secure and transparent way of keeping electronic health records (EHR). Both physicians and patients receive approval to access records and use as needed. At the same time, blockchain solutions are driven by smart contracts that enable the protection of EHR data privacy. Medical device data and clinical trials are encrypted, insurance can be performed and stored. Another use case is prescription drugs and equipment supply chain control.
E-commerce is increasingly demanding blockchain technology. Again, the supply chain is a crucial aspect here: monitoring goods and inventory management are often challenging tasks, but blockchain helps companies manage their inventory more efficiently. Consumers who trust their money and data to e-commerce organizations are concerned about data security and transparency, but this issue can be addressed by developing a blockchain. Even small changes in the transaction are obvious on the blockchain, and tracking who made a mistake is no longer a problem. It is also possible to make crypto payments.
The following area is actually related to cryptocurrency transactions. DeFi, short for decentralized finance, not only involves the simple transfer of assets, but also refers to more complex cases of financial use. The implementation of the blockchain contributes to the exclusion of intermediaries and, accordingly, reduces costs. All transactions are encrypted and immutable, multi-step authentication mechanisms make it difficult for unauthorized members to access. Among the recent innovations is the opportunity to turn to P2P lending services and digital banking.
Blockchain can also affect social media. Along with its global popularity and ability to connect people around the world, social media continues to be vulnerable to account hacking, identity leaks, and copyright infringement. To address these issues, the blockchain offers copyright protection, digital identity verification, and impartial licensing.
Real estate, eGovernment, the gaming industry and many others have joined the wave of blockchain adoption. Once your company chooses an innovation, delegate the implementation of the technology to one of the large blockchain companies that will develop DLT for you for the future. With blockchain, your business will change the rules of the game in your field.