The Latest Blockchain Use Cases: A Brief Overview
Bitcoin — probably the most famous blockchain today — sees an incredible quarter of a million daily transactions.
That’s a unique and widespread use for the distributed ledger technology that underpins the blockchain network, but it’s not the only use case for Blockchain Use Cases.
So, what are the types of blockchains in use today? How many blockchain use cases are there? And is there more to the blockchain than the many types of cryptocurrencies it powers?
If you’re curious about these questions, then keep reading. We will break down every detail of the countless blockchain use cases today.
Wait, What Even Is a Blockchain?
Let’s start with the basics. Before we get into blockchain use cases, let’s talk about distributed ledger technology.
That term is a bit of a mouthful, but it’s easy to grasp. Imagine a ledger, like the kind an old-fashioned shop might have. The shopkeeper uses it to record data: their inventory, how many goods they’ve sold, and how much stuff they have ordered.
That’s all fine, but anyone can come in and write whatever they want in that ledger. Heck, an unscrupulous shopkeeper could write false info themselves for nefarious reasons.
A blockchain is a ledger that exists on loads of different computers, all at the same time. You can’t falsify data because you can’t get to all those entries, and it’s all backed up by some seriously impressive high-level cryptographic math.
Not so hard, right?
So, What Are the Blockchain Use Cases?
There are several spearheading cases involving blockchain use. Each one surpasses the other in the uniqueness of the application.
So, let’s check out the most happening use cases of blockchain this year.
Fintech
The US fintech sector has used blockchain since its inception. However, the use cases keep evolving day in and day out.
There are several issues in the industry. As fintech services expand, virtual theft and scams increase manifold. That’s where blockchain becomes paramount.
It leverages a secured cyberspace for transactions. The blockchains prevent external bugs from violating a financial transaction gateway.
There are other practical uses of blockchain in this sector. For example, the blockchain helps in safe virtual KYC. There are many such examples where auditing times have been reduced due to blockchain.
However, blockchain also plays a crucial role in fund settlement.
We see immediate fund transfers, even in the case of cross-border payments now. But it’s a blockchain that made all this possible.
Blockchain creates imaginative contract pathways. This secure pathway overrides all permission blocks in the transaction.
Government Sector
If there’s some sector that’s been most benefitted from blockchain, it’s this one.
Firstly, blockchain aids in improving decentralization and transparency.
Secondly, it leverages easy and highly efficient record-keeping systems.
Let’s heed the specific use cases of blockchain in the government sector:
- Secure identification
Blockchain filters bugs from identity databases. However, it adds to the privacy of recipient data and reduces the risk of fraud.
- More transparent election system
Blockchains have made elections more integral. At the same time, it can now cut out chances of manipulations and alterations in any stage of election governance.
- Better record keeping
Blockchain facilitates better record-keeping. It can set up and manage extensive data inventories. At the same time, it creates easy cues to retrieve genre-specific data.
- More efficient tax compliance
Above all, blockchain can prevent tax evasion in many ways.
Firstly, it made tax transactions more traceable.
Hence, the government can monitor tax payable, and taxes received in real-time. As a result, tax fraud has been reduced in the recent past.
Supply Chain
The following area revolutionized by blockchain is the supply chain.
The two facets of blockchain that work the most here are:
- Transparency
- Higher rate of decentralization.
For example, blockchain creates a neural network of supplier databases. So, you don’t have to bother if your regular supplier backs out at the last minute. At the same time, blockchain has made the supply chain management course much more straightforward.
Blockchain also facilitates end-to-end digitization. As a result, we can bypass the sluggish and error-prone manual intervention zones.
Advertising
The sector has been reeling from issues like costly intermediaries in recent times. However, blockchain cleared off those clouds to some extent.
Brands can now generate ad funnels with multiple vendors to execute their advertising ideas. Hence, the niche targeting and ROI from advertisements have improved manifold.
Advertisements have also become more reliable due to:
- Better privacy of consumer data
- Lessening ad fraud
- Creation of a broad ad agencies’ network to the disposal of brands
Crypto
Well, the following use case is cryptocurrency, of course. Cryptocurrencies use distributed ledger technology to record who owns which cryptocurrency and how much they have. When they send it to other people, the ledger records that, too.
Because blockchain is secure and trustworthy, people feel confident that their crypto transactions are above board. Moreover, it’s adaptable enough that different currencies can exist atop the blockchain. That’s why Bitcoin eventually led so many people to learn how to buy Ethereum.
But crypto isn’t all blockchain. There’s also stuff like NFTs and other kinds of smart contracts. In this instance, the blockchain is used to record contracts and records of ownership in a memorable and trustworthy manner. Everyone can be confident that their deals are stable because the details are on the blockchain.
Who knows? Our ownership of our vehicles and homes will be recorded as NFTs!
It’s Off the Chain
As you can see, the blockchain use cases that are around today are varied and fascinating. Beyond cryptocurrencies (which are cool all by themselves), intelligent people find new uses for distributed ledger technology daily. It won’t be long before the blockchain becomes commonplace in our daily lives.
And if you don’t believe me, you can always trust the blockchain.
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