Even though cryptocurrencies get the bulk of blockchain-related headlines, the application of the underlying technology has been rising rapidly. A blockchain may be seen as a decentralised database in which information is stored on each node that participates in the functioning of the network. Due to the database’s distribution across network administrators, the database’s data are assumed to be accurate and preserved securely.

As its name implies, blockchains organise their data into blocks, which are then added to the network as time passes. Blockchains provide a risk-free data chronology because each successive block builds on the information contained in the blocks before it.

When it comes to digital currency, the blockchain establishes trust and solves a problem known as the “Byzantine generals dilemma.” This difficulty refers to the difficulties that far dispersed parties have while attempting to reach a consensus. Because Bitcoin employs blockchain technology, it is feasible to certify unequivocally that money is not spent twice, that its supply is limited, and that the network’s transaction history is viewable.

However, the technology has uses beyond these use cases, and several firms and organisations have already adopted blockchain technology while not using cryptocurrencies.

The word “blockchain” is most often associated with cryptocurrencies, and the Bitcoin Network is seen as its most notable use. At its most basic level, however, a blockchain is a distributed, network-wide ledger. This indicates that blockchain applications extend well beyond currency.

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Uses of Blockchain without cryptocurrency

Even while the bulk of blockchain-related news focuses on cryptocurrencies, the technology’s overall use has been on the increase. IBM’s partnership with the Abu Dhabi National Oil Company to examine the feasibility of a blockchain-based supply system for oil and gas production is one such example.

There are several more examples, such as the Da Beers Group’s use of a blockchain to track the movement of high-priced diamonds through its supply chain and JPMorgan’s use of the technology to estimate the value of loan collaterals.

Johnny Lyu, CEO of the cryptocurrency exchange KuCoin, said in an interview that the usage of blockchain is “commonplace among government bodies and enterprises.” As an example, he offered the Global Shipping Business Network (GSBN), a collaboration comprised of major financial institutions such as the Bank of China, DBS Bank, and HSBC.

To modernise and improve container shipping tracking, the GSBN has been testing the use of its blockchain technology. In addition, Lyu noted that the Indian state of Maharashtra has begun issuing caste certificates that can be verified on the Polygon network, and that the Romanian Financial Supervisory Authority has implemented blockchain technology to “accelerate workflows and reduce the time required for manual processing of large data sets.”

LyuYYousaid that there is no end in sight for the examples and that “it would take a considerable amount of time to describe all of the current blockchain initiatives announced in 2022.” Moreover, he incorporated the following:

Without a doubt, we are seeing the incredible and widespread acceptance of blockchain technology, and the number of enterprises using these technologies will only expand as time passes. Similar to how the construction of websites and business accounts on social networking platforms was previously mandated, the usage of blockchain technology is gradually becoming necessary.

In an interview, Ben Livshits, CEO of the blockchain network Zilliqa, indicated a further use. The United Nations World Food Programme has used blockchain technology as part of its Building Blocks programme. This has enabled the collaborating organisations to “collaborate, trade, and exchange information securely in real-time over a neutral network devoid of hierarchy.”

According to Livshits, the programme has “already aided over one million people and processed over fifteen million transactions.” In addition to Ford, FedEx, Walmart, and Maersk, several other firms have either performed blockchain technology pilot studies or are actively using it. Because there are so many advantages to using blockchain technology, a large amount of cash has lately been invested in the area.

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Positive aspects of blockchain technology

Using the food and beverage industry as an example, Livshits said that blockchains could provide “the needed openness that customers want and expect today.” According to Livshits, “today’s ordinary customer is concerned not just with what they eat and how it should be prepared, but also with where the products originate from and how they are treated.”

In addition, Livshits said that the adoption of blockchain technology might become ubiquitous and “could help expedite payment processing.” He said:

Les advantages are pretty apparent: fewer human errors, better access to information, increased safety, traceability, and transparency, all of which may ultimately aid in compensating all those engaged in the supply chain correctly. According to Livshits, the objective of blockchain technology, similar to that of earlier technologies, should be “creating value and use for people.”

Sankar Krishnan, executive vice president and industry head of banking and capital markets at Capgemini Financial Services, asserts that blockchain technology is “very ESG-friendly.” By “ESG,” Krishnan refers to the norms of environmental, social, and governance to which investors are paying growing attention.

In addition, Krishnan said that the majority of individuals do not know “how many parties are involved in a supply chain transaction.” Due to the large number of parties involved, it is vital to maintain a large quantity of data. This comprises information on importers, exporters, the transaction itself, the items, shippers, marketplaces, logistics companies, insurance companies, and other intermediaries.

He continued by stating that each of these parties either repeatedly prints out the document or transmits it through email, which is a waste of resources. If all transactions were performed using blockchain technology, there would be no need for this utilisation, according to Krishnan.

Moreover, according to Krishnan, a blockchain provides greater transparency and increased monitoring capabilities for raw resources. In addition, it makes data available to all parties involved in the transaction simultaneously, which significantly minimises the likelihood of fraudulent conduct. He added:

In actuality, “all manual procedures are replaced by smart contracts” and all parties agree on how these workflows should move across the blockchain.

According to the analyst, “the sector stands to gain from implementing blockchain and smart contracts,” and very specific use cases have emerged in the financial services, healthcare, and retail industries. In addition, Krishnan listed the management of loyalty programmes, royalty payments, and public sector applications as further use cases. There is a reason why not every organisation in the world has embraced blockchain technology, and why the technology has not been widely adopted despite its many applications and promise.

Problems with the blockchain

Even though there are several advantages to using blockchain technology, some firms have not yet adopted it even though its use has progressively increased over the last few years. The large financial investment required to implement this kind of technology is the system’s principal disadvantage.

This is the case, according to Arry Yu, the chairman of the Cascadia Blockchain Council of the Washington Technology Industry Association. In an interview, Yu said that the adoption of enterprise-level software technology necessitates a “big investment,” and he noted that a change in management may also be required, since certain stakeholders may not appreciate the presented transparency.

According to Yu’s explanation, the “enormous amount” of initial investment “related to process redesign, documentation, training, support, and more” also contributes to the increase in costs, as do “training stakeholders on new processes” and “building out the right types of reports that provide each stakeholder with meaningful key performance indicators.”

According to Kieren, this kind of technology “ensures that data is not changed or lost.” It does not assure correctness, according to James-Lubin, president and CEO of BlockApps, a developer of blockchain solutions, since “this is dependent on whoever is entering the information” and “human data entry might be prone to inaccuracy.” disclosed James-Lubin.

The company’s chief executive officer recommended as a possible solution the deployment of precision Internet of Things sensors to “obtain data immediately.”

Despite the continually rising number of use cases for blockchain, implementers are still determining exactly what can be done with this technology and how far it can be taken. When Bitcoin (BTC) was first established, smart contract-based applications similar to those presently accessible on Ethereum did not exist.

Even though this technology has only been available for a little over a decade, it has the potential to alter a multitude of sectors. It is now unclear whether Satoshi Nakamoto’s creation of Bitcoin or the blockchain technology that enables it will be deemed more useful to society as a whole.