Despite the success of Bitcoin and NFTs, many people are still confusingly considering blockchain technology and cryptocurrencies as the same concept.
While blockchain technology is the foundation for the existence of cryptocurrency, it has many other non-financial use cases for its unique set of functionalities.
In this article, you will find out five ways of using blockchain technology that have nothing to do with going to buy bitcoin with paybis and trade cryptocurrencies. This will give you a better overview of the blockchain world and, ironically, allow you to find excellent investment opportunities.
Back to Basics – What is Blockchain Technology?
Blockchain technology refers to a mechanism of recording information in a manner that hinders the possibility to change, hack, or cheat the applied system. In essence, a blockchain is a digital ledger of transactions distributed across an entire network of fact-checking computers (nodes).
In a blockchain, each block consists of a piece of data, a unique hash, and the previous block’s hash. Hence, it is impossible to alter the information contained within a single block without altering the information of all the blocks within the system.
This way, users of a blockchain can transmit information or money using a P2P (peer-to-peer) network structured on top of a shared ledger.
Transparent and Fair Voting Mechanisms
2020 was not a good year for many people around the world. A global pandemic, violent wars, economic chaos, and political controversy are some of the issues that made this year so complicated to deal with.
In the same year, America had to deal with one of the greatest controversies of all time, which was the alleged “stealing” of the election. Although there is evidence of fraud, the current system leaves too many breaches to this type of allegation.
In this sense, legislators and responsible authorities could use blockchain technology to create voting mechanisms with anti-counterfeiting design. This way, it would be virtually impossible to steal an election, guaranteeing transparency and fair democracy for voters.
Next-level Supply Chain and Logistics
The concept of a supply chain encompasses all the processes that a product goes through, from the raw materials to its delivery to the final consumer, referring to the methods and operations that make up manufacturing, logistics, and distribution.
In essence, an efficient supply chain involves all sectors of an industry segment affecting how a product or service is presented to customers. Also, it is crucial to outline all company’s peers involved in this process, such as suppliers, transportation, logistics operators, ports, etc.
In this sense, a blockchain-based supply chain can help boost productivity and process control, as all companies involved have access to an immutable ledger with recorded price, date, location, quality, certification, and other essential data for managing a supply chain.
Furthermore, the availability of information is a fundamental factor in improving the level of traceability of materials, which directly contributes to lower losses from counterfeiting activities.
Plus, a blockchain-based supply chain would improve visibility, transparency, and full legal compliance.
Non-Financial Uses Cases of Blockchain Technology – Enhanced Cross-border Payments
Anyone who had to make a cross-border payment previously knows how complex it can be, depending on the situation. Despite the ever-growing process of globalization and further expansion of virtual borders, many financial entities are still delayed when it comes to cross-border payments.
As blockchain technology is based upon encrypted distributed ledgers for transactions, it has properties to enhance the functionalities of cross-border payment services- either using cryptocurrency or fiat currency.
Immutable Anti-Money Laundering Tracking System
Undoubtedly, blockchain technology not only makes virtual transactions more reliable but also helps to combat criminal activities such as money laundering.
In this context, when someone tries to counterfeit a piece of information stored on the blockchain, the system is inherently prepared to collect, track and store large amounts of data that users can report to regulatory authorities and law enforcement.
Safe Sharing of Medical Data
Even with all the innovations in the healthcare industry, it is still hard for many individuals worldwide to have a complete medical portfolio with all concerning information.
Plus, it is also crucial to guarantee the safety of the medical data when sharing it with doctors and other health professionals. Blockchain technology can help by enabling healthcare systems to store and share medical data in a decentralized and secure way.
Final Thoughts
Although Bitcoin and all cryptocurrencies were the first known use cases of blockchain technology, they are not the only use cases existing. Instead, blockchain applications are potentially disruptive, especially as it will be interesting to see how many of them will materialize soon.
Furthermore, innovations like layer two scaling and interoperability will expand these possibilities even more, creating a pathway for a blockchain-powered future.
