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How can blockchain technology be applied to the real world?

September 27, 2020

The potential of blockchain technology to disrupt multiple industries is no longer a suggestion to become a reality today.

Because of its transparency and immutability, there are multiple use cases of blockchain in the real world today, ignoring the numerous proposals that are likely to be implemented in other sectors that are still in “PoC” proofs of concept.

Undoubtedly, the future of blockchain technology is bright, and with that, of course, given their intrinsic relationship, cryptocurrencies play a fundamental role.

How can blockchain technology be applied to the real world?
How can blockchain technology be applied to the real world?

Many real world applications are emerging and it is worth talking about them in general so that we can accurately assess the solutions that are being found in various industries in blockchain technology to problems that were previously difficult to solve.

After the invention of the Internet, the blockchain is considered the big event for its encrypted recording of transactions of everything we can imagine and accessible to all without the need for a central authority or agency.

So let’s take a look at some of the real-world uses of blockchain technology in various industries that demonstrate fundamentals beyond the hype.

1.- Supply chain management

There are currently many examples of how blockchain can be used to improve the overall efficiency of supply chains. Thanks to the technology that allows a unique and precise digital identification of the location of the articles, its strength allows to eliminate paper, optimize the time in bureaucratic procedures and avoid losses or monitor the quality of the products during production.

A case in point is the application of blockchain in supply chain management for retail giant Walmart with the aim of reducing waste, better managing contamination and improving transparency, according to New Food Economy.

In addition to the application of the blockchain in the food sector, we are currently noticing that the automotive, finance, mining, logistics and healthcare industries, among others, use this technology for efficient management of their processes in the supply chain.

2.- Digital identification

One of the great expectations that have been placed on the use of blockchain technology is undoubtedly its application in the digital identification of people.

With so many variations in official identification around the world due to the lack of uniformity other than passports, the challenges people face in this area are reason to encourage decentralized solutions.

From challenges for certain population groups to obtain official identification, to refugees and migrants who are forced to flee without receiving the appropriate documents, resulting in the loss of their respective identification. Blockchain technology has the potential to solve all of these problems by letting each individual adopt their own unique and immutable identification that enables them to do everything from banking to travel without restrictions.

All thanks to a digital key comparable to the unchangeable ledger, to check it on the blockchain in a quick process.

Additional information such as social security, login information for social media or integrated medical records are possible thanks to blockchain technology.

A good example of this is the Raonsecure platform in South Korea, a leading software company that has developed a decentralized identification system “DID” with which an authentication certificate can be credited to medical records, for example. applies FLEET on its medical platform eCRF.

3. Finances

Facilitating peer-to-peer business transactions has been one of the strengths of blockchain technology since the birth of Bitcoin.

After the 2008 crisis, it was only a matter of time to captivate the financial sector with the benefits of blockchain, as cryptocurrencies entered the cryptocurrency scene through the application of decentralized transactions encrypted with cryptographic algorithms.

It took only a decade for major central banks and the world’s leading financial institutions like JP Morgan to adopt decentralized solutions to transparently streamline their financial transactions, ranging from issuing bonds to remittances in the world’s major border corridors., from the hands of many platforms that are established in the crypto space.

More importantly, a new decentralized financial order – DeFi- – has been born that every day attracts more investors and enthusiasts from around the world who see cryptocurrencies – and logically in blockchain – as an unprecedented door to better financial integration

To take just one example, check out what BitPesa did in Subharan Africa, a blockchain-based payment platform It has succeeded in reducing costs and increasing the speed of commercial payments for more than 6,000 customers in just over six countries on the subcontinent.

4. Health care

With the onset of the COVID-19 pandemic, the use of blockchain technology in healthcare had a gigantic leap in adoption that has enabled it to expand its potential not only in this sector but in everything its environment implies including the supply chain, payments, security, logistics.

With truthful patient information as the nerve center across the healthcare ecosystem, hospitals have moved away from paper to use blockchain technology to store their data and keep it safe and accessible at all times.

Furthermore, with systems like the eCRF from FLEET At St. Mary’s Hospital, patients can access their medical records via the blockchain and their diagnoses can also be saved so that the patient’s health can be tracked by treating doctors at any time.

In addition, cases of drug surveillance and medical supplies are possible through this technology, as we saw in proposals recently in Santiago, Chile.

5.- Asset tokenization

Many see potential in the use of blockchain to tokenize assets. The unique thing about tokens on the blockchain is that they don’t have to be fungible. By using non-fungible tokens, it is possible to tokenize assets that were previously illiquid.

Two of the most common examples we find right now are real estate tokenization and works of art. Thanks to the fungibility of tokens, it is possible to improve the liquidity of these assets by making them easier to exchange regardless of limits.

Ownership and title details are stored on the blockchain, which facilitates the transfer of ownership and their respective traceability. Titles are stored in the blockchain and can be viewed, changed and updated as needed.

Conclusion

The uses of blockchain technology in the real world are very diverse. The implicit benefits allow a number of uses beyond the examples shown in this post.

With an increasingly digitized world and a population demanding safer and more transparent solutions for their daily lives, it is not surprising that this type of disruptive technology has become the epicenter of many sectors, as is the case with the internet today.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You must do your own research when making a decision.

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