Blockchain Technology is not only impacting the financial world but several other industries too. It has become the solution to several real issues that the world is facing.
The Blockchain Use Cases have shown that a system can be trusted and transparent without being interfered.
If you run a company with issues of legality or supply chain, Blockchain has an answer.
Here are 5 Financial and Non-Financial Blockchain Use Cases which will prep you for what solutions Blockchain is capable of-
A smart contract is defined as a digital legal binding document which helps secure relationships between buyers and sellers or any two parties.
Sometimes the legalities can get very confusing leading to mistrust, high costs and delays in processing between the two parties.
One example of where Smart contracts are beneficial is in the Insurance industry.
Insurance policies tend to take weeks and months for full payment to the insurance holder. The reasons are mostly due to the manual processing and comprehensive documentation involved. Costs too tend to become high due to the substantial administrative costs.
However thanks to smart contracts, insurance policies have become automated. Conditions and terms are input into the smart contract, and whenever they are triggered the claims are processed immediately.
All the conditions, for example, the weather in case of a natural disaster are tracked using Blockchain. The payments are almost immediate with much lower administrative costs which can be the saving grace of a person’s life during natural calamities.
Globalization has helped the world we live in by buying products which we usually don’t grow or manufacture in our home country. However, globalization has increased tremendously over the years leading to frauds, human errors in the documentation, delays and unnecessary costs.
Blockchain’s technology which is based on an open distributed ledger that records transactions between two parties managed by a peer to peer network can facilitate document handling in International Trade.
In this scenario, too smart contracts are actively involved in helping draft contract between the buyer (exporter) and seller (importer) whereby both the buyers and sellers fulfill specifically agreed clauses. This trust is built upon even if the two parties don’t know each other well.
The need for mediators cuts down drastically, and hence costs fall. Blockchain helps the whole communication make more sense and be in real time leading to an efficient international trading process.
The single Blockchain has the necessary information in one document which updates and verified by all members of the transaction. Hence no unnecessary blocking of funds as capital is transferred quickly.
The first commercial trade finance transaction was done between HSBC and Dutch lender ING. A bulk shipment of soybeans was shipped from Argentina to Malaysia and using Blockchain made the process of the letter of credit much faster and efficient. The exchange was said to be done within 24 hours compared to the usual 5 to 10 days.
Blockchain’s most popular by-product is cryptocurrencies. Legal in some countries, not legal in a few and still pending on a proper decision by many, cryptocurrencies has become the talk of all the towns.
What cannot be denied is the speed of transacting cryptocurrencies between two different people’s wallet. It is as quick as lightning.
It is no wonder that Ripple’s technology is being implemented in several banks to send money across the border in matters of seconds.
If payment had to be made to another country, it would take a minimum of 3 to 5 days when using the SWIFT method while Paypal usually takes 2 working days. Cryptocurrencies have the advantage of moving in a matter of seconds, to the most popular which is Bitcoin transferring in a few hours. Lightning network technology is bound to scale up Bitcoin to the speed it once was.
The transaction costs are also far cheaper when using cryptocurrencies to move funds, with SWIFT and other banking methods taking quite a percentage for transferring.
Logistics and Supply Chain
With an ever-increasing population, tracking goods has become difficult for most of the individuals and companies. As a result Blockchain supply chain innovations deliver in bringing a transparent system with several advantages.
With a transparent system, tracking of the item can be done in real time which helps buyers know where the items are currently and the supplier has ensured that the good is on the way safely. It helps build a better trust system, without the need for continuous customer care responses which may take time to provide feedback or answer.
The credibility of the supplier is improved drastically along with better confidence from the buyer. Blockchain even lets high valued goods such as diamonds be tracked to ensure safety and no fraud takes place.
The number of intermediaries in a supply chain is beyond countable and hence with a more transparent and decentralized system middlemen are cut. Thus loads of costs are reduced which impacts in creating a higher demand from the buyers.
Kerala, a beautiful Indian state is exploring Blockchain technology for the supply of fast spoiling items such as Milk, Fish, and Vegetables. With the help of Blockchain, they can be monitored carefully when being transported from the beginning stage of procuring to the final stage of selling in retail shops.
Blockchain is rapidly changing the way the incompetent healthcare industry operates. A clinic or hospital has many records which are not being stored using Blockchain. Thus security is maintained in keeping these private medical files safe for the future. One example is MedRec, which helps maintain medical records throughout all healthcare providers. Patients keep moving from one healthcare provider to another, and thus data is saved through Blockchain to be accessed by any of the healthcare providers.
Blockchain integrated with Artificial Intelligence has also helped ensure that people who don’t have medical access can speak to a doctor and gain some insights on their health concerns. Docadamic, for example, helps connect patients to doctors. There is even a token called MTC which powers Docadamic’s payment process for prepayments in case of emergencies.
Another great idea was proposed by Linnia’s founder Diego Espinosa who is developing a Blockchain centered system where health data is collected and shared with authorized people. Individual health records will be allowed to be viewed only by a select few, depending on what documents they are.
The 5 use cases above showcase the variety of industries Blockchain is improving. Blockchain technology is proving to be one of the most useful innovations.
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Source: Toshi Times
Original Post: Top 5 Blockchain Use Cases You Need to Know