Before we dive into the use cases, let’s go over blockchain technology. There is often misconception that blockchain is Bitcoin but actually, blockchain is the technology behind it.
As the name suggests, blockchain is a chain of blocks made by groups of transactions which are combined chronologically. In technical terms, blockchain uses distributed and decentralised network of nodes globally which cannot be corrupted or altered. Bitcoin is one of the biggest ledgers of records today. So why all the hype?
As a system of record, it has given more opportunities for enterprises to solve issues of inefficiencies on top of just cryptocurrencies.
What are some application examples of blockchain technology?
|Digital Payment||Cross-border payments are rather expensive and time consuming with existing methods. Blockchain can facilitate such transactions through the development of cryptocurrencies and digital wallets. Digital assets may be used by parties to fulfill payments as they serve as an agreed store of value. Furthermore, for the unbanked, such options enable access to funds or transfers at much lower cost and faster processing time.|
|Fundraising||Traditional fundraising methods include going for IPO, venture capital funds and angel investors. Lately, ICOs and IEOs have opened up more opportunities for projects to raise capital. Read more about the differences between ICO, IEO and IPO here.|
|Healthcare||A lack of interconnectivity across the medical system can make effective healthcare solutions more tedious for patients moving across different hospitals. Blockchain may help by providing access to a secure database of medical history tagged to a patient’s unique ID. A ledger can also be used to manage distribution of supplies, drugs and payments. In addition, fitness wearables have also been gaining popularity which involves huge amount of sensitive but useful data for possible integration into current networks and medical research.|
|Real Estate||In the real estate market, there are relatively high barriers of entry for investment. Properties may be tokenised and traded, where people sell fractions of shares on a property as compared to finding a single buyer. Hence, tokenisation increases liquidity considerably. Blockchain can also be used in terms of smart contracts to speed up transactions. Paper processes across multiple stakeholders may be streamlined and digitalised for transfer of land titles and loan approvals.|
|Supply Chain Management||As a product moves along its supply chain, there are often issues of tracking and counterfeit. Blockchain technology may assist with unique identities of these products or shipments which are recorded and transplanted onto an immutable blockchain. Concerned parties can track products’ progress and end consumers may verify the authenticity of purchased goods. Vendors will also be able to cash their payment by presenting the proof of shipment.|
Blockchain technology can also be useful in other sectors such as logistics, agriculture, automotive and more. If you enjoyed the article, please feel free to share it! Also, check out our blog for more useful articles.
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