Benefits & Uses of Blockchain Technology

Blockchain technology can be integrated into multiple areas. With its increased applications, benefits & uses of Blockchain technology are increasing with each passing day. The primary use of blockchains is as a distributed ledger for cryptocurrencies such as bitcoin; there were also a few other operational products that had matured from proof of concept by late 2016. As of 2016, some businesses have been testing the technology and conducting low-level implementation to gauge blockchain’s effects on organizational efficiency in their back office.

Operations often waste effort on duplicate record keeping and third-party validations. Record-keeping systems can be vulnerable to fraud and cyberattacks. Limited transparency can slow data verification. And with the arrival of IoT, transaction volumes have exploded. All of this slows business drains the bottom line — and means we need a better way.

There are several ways to build a blockchain network. They can be public, private, permissioned, or built by a consortium.

Uses of Blockchain

• Most cryptocurrencies use blockchain technology to record transactions. For example, the bitcoin network and Ethereum network are both based on blockchain. On 8 May 2018 Facebook confirmed that it would open a new blockchain group which would be headed by David Marcus, who previously was in charge of Messenger. Facebook’s planned cryptocurrency platform, Libra (now known as Diem), was formally announced on June 18, 2019.
• Blockchain-based smart contracts are proposed contracts that can be partially or fully executed or enforced without human interaction.a One of the main objectives of a smart contract is automated escrow. A key feature of smart contracts is that they do not need a trusted third party (such as a trustee) to act as an intermediary between contracting entities -the blockchain network executes the contract on its own. This may reduce friction between entities when transferring value and could subsequently open the door to a higher level of transaction automation.
• According to Reason, many banks have expressed interest in implementing distributed ledgers for use in banking and are cooperating with companies creating private blockchains, and according to a September 2016 IBM study, uses of blockchain in banking industry is occurring faster than expected.
• Blockchain technology, such as cryptocurrencies and non-fungible tokens (NFTs), has been used in video games for monetization. Many live-service games offer in-game customization options, such as character skins or other in-game items, which the players can earn and trade with other players using in-game currency. Some games also allow for trading of virtual items using real-world currency, but this may be illegal in some countries where video games are seen as akin to gambling, and has led to gray market issues such as skin gambling, and thus publishers typically have shied away from allowing players to earn real-world funds from games.
• In response to the 2020 COVID-19 pandemic, The Wall Street Journal reported that Ernst & Young was working on a blockchain to help employers, governments, airlines and others keep track of people who have had antibody tests and could be immune to the virus. Hospitals and vendors also utilized a blockchain for needed medical equipment. Additionally, blockchain technology was being used in China to speed up the time it takes for health insurance payments to be paid to health-care providers and patients.
• Possible use cases of blockchain technology in Multi-domain operations include crypto-secure access to smart contracts as a procedure for issuing orders to troops and the making of logistic requests, sharing of Augmented Reality data on the battlefield, monitoring the health of soldiers, etc.
• Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, tracking digital use and payments to content creators, such as wireless users or musicians.

Content Reference: Wikipedia, IBM

You were reading the article, Benefits & Uses of Blockchain. To read more such articles, click here…