The 4 Major Applications of Blockchain Technology

Blockchain technology is becoming more useful with each passing day and offers a lot of benefits to consumers and businesses alike.

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The word ‘blockchain’ is more and more in use today, especially when it comes to cryptocurrencies. However, the applications of blockchain go beyond cryptocurrency networks. Applications of blockchain technology today aren’t restricted to the financial industry either.

This is as the distributed ledgers found in blockchain technology can be used across industries. Blockchain databases are distributed, as well as transparent and secure. Various users within a blockchain network will have access to copies of the database.

These users can also be considered as nodes. These nodes then work together with other nodes to ensure that changes are made to the database, when necessary. As a result, the process is made both transparent as well as secure. Businesses have found different ways of using blockchain technology applications,

The distributed and transparent nature of blockchain technology can be used across various industries. Companies make use of blockchain technology in different ways. Here are real words examples of blockchain technology being used in different industries:

1. Managing Supply Chains

You can make use of blockchain development tools to manage supply chains. It’s becoming more and more essential for companies to be able to move in a fast and efficient manner. There is a need for goods to be transported between locations as fast as possible. Goods may even need to be transferred to other parts of the world.

This is as there has been an increased demand for various goods, across the world. If there is a break in this supply chain, as witnessed during the Covid-19 pandemic, then this will result in a shortage. It’s necessary for supply management tools to both be fast as well as efficient. One way this can be done is by utilizing blockchain technology.

With the help of blockchain technology, it’s possible to trace what the trajectory of a project is. Businesses can trace a product from the start to when the product reaches the home of a customer. Blockchain technology can also be used to reduce delays, prevent added costs from piling up, as well as limit human error. Risk related to fraud is also mitigated, as there is no need for any central intermediary, when blockchain technology is used.

2. Developing a Voting System

There is a growing use of blockchain technology, for purposes that fall outside the traditional purview of this technology. The voting system of a country needs to be strong in order to ensure that the voting process goes ahead without a hitch. Electronic voting has turned out to be more and more popular. However, despite the many benefits of electronic voting, such a voting system can still be vulnerable to both attacks as well as breakdowns.

In order for voting infrastructure to be considered secure, it must be free from attacks, as well as transparent. This way, every user can play a role in verifying how legitimate the voting process is. Blockchain can play an important role in improving the voting process.

When blockchain technology is used, the database for voting can be found on a ‘chain’, which can also support tens of thousands of nodes at the same time. Blockchain technology also has great encryption as well as decentralization technology. The databases for voting using blockchain technology can also be difficult if not impossible to corrupt. Every single record of voting can also be verified easily. It’s also important to note that in such cases, the voting network cannot be affected by intermediaries or by third parties.

3. Loyalty Rewards in Retail

Applying blockchain technology outside the purview of traditional use for blockchain, has showcased how useful and versatile this technology is. For businesses, retaining customers is becoming increasingly important. The applications of blockchain technology extend to loyalty rewards in the retail sector as well. If a business wants to retain customers, then loyalty rewards become important.

With the help of blockchain technology, the structure related to loyalty rewards can be more accessible as well as easier to use. In the contemporary market, cryptocurrency can be seen as a valuable reward. It provides businesses with the power to leverage blockchain technology to get transactions speeds that are faster, through digital wallets. A customer’s rewards can be stored in these wallets in an environment that is both safe as well as immutable. There is no need to worry about centralized authorities that will need to approve the rewards. As a result, rewards can also be handed out instantaneously.

4. Protecting Ownership and Copyright

It’s becoming increasingly important to take ownership of different kinds of data, such as data related to music, videos, paintings, and more. It is becoming necessary to protect artists from entities that might try to claim ownership of work that doesn’t belong to them.

The verification systems used by third parties such as Meta and Google aren’t foolproof either. As a result, blockchain technology can be used to solve the problem. Digital data related to copyright can be stored in a blockchain. This will be both transparent as well as secure. Third parties will be restricted from claiming ownership as well. This is as they will need to prove ownership on the same blockchain first, which becomes difficult to do.

Technologies that are adjacent, such as non-fungible tokens, make use of digital certificates to provide ownership that is immutable. Artists can enjoy profiting from their work even if that work has changed hands many times.

Conclusion 

The applications of blockchain technology go beyond what it was traditionally created for. Use this guide to learn more about the different applications of blockchain technology.

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