Practical Uses of Blockchain Technology

Practical Uses of Blockchain Technology

Blockchain News
September 3, 2023 by Editor's Desk
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The term “blockchain” is climbing the charts in the financial technology industry as banks and other financial institutions seek profitable applications for the technology. Since it is the technology behind cryptocurrencies, most people think blockchain is primarily relevant in the financial sector because of its association with crypto. However, blockchain technology’s potential uses go well
Practical Uses of Blockchain Technology

The term “blockchain” is climbing the charts in the financial technology industry as banks and other financial institutions seek profitable applications for the technology. Since it is the technology behind cryptocurrencies, most people think blockchain is primarily relevant in the financial sector because of its association with crypto. However, blockchain technology’s potential uses go well beyond banking and cryptocurrency, and it threatens to take the world by storm in ways nobody could have predicted. Listed here are awesome ways in which blockchain technology will likely improve our lives over the next decade.

Applications Of Blockchain Technology To Over Lives

How exactly will our regular activities be affected by blockchain? We have compiled a few of the potential impacts that blockchain technology might have.

1.    Simplifying the Tax Collection System

Government agencies may be able to streamline the tax-collecting process with the use of smart contracts via blockchain technology. It may assist them reconcile their tax information with their financial activities, saving time when figuring out their tax deductions and other social security deductions.

2.    Data Storage

A blockchain is a decentralized digital ledger that records financial transactions.  It may also be used to safely store sensitive documents, preventing any unauthorized changes, theft, or misuse. Legal disputes, financial dealings, medical histories, birth and death certificates, insurance policies, and other private papers may all be recorded and maintained on the blockchain in an encrypted format. Digital wallets that store users’ data also leverage blockchain technology. When traders use them for storing their digital assets, they secure their personal and financial information in a secret keyphrase.  Additionally, auto trading bots like Bitsoft 360 also record the financial information of traders and keep their data safe from intruders.

3.    Tourism and Lodging

Long wait times and misplaced bags are just two of the many annoyances that come with travel. There are a growing number of firms that are changing the travel and hotel sector by using blockchain technology to eliminate human error during bookings, keep frequent flyer data safely, and more.

Furthermore, blockchain solutions remove the need for a centralized authority when making reservations. Discounts on hotel stays, vehicle rentals, and flights are often available via online booking sites. When personal information is shared with other parties, however, it opens the door to identity theft and other forms of abuse. Blockchain technology may lower travel expenses and improve the safety of personal information by cutting out the middleman during booking transactions.   In the next decade, the travel industry will undergo dramatic changes that will make trips easier, safer, and more enjoyable for people all around the world.

4.    Voting and Governmental Action

Ballot machines produced by third-party foreign organizations have been shown to be vulnerable to hacking and unreliable, raising concerns about voter fraud. The blockchain’s encryption and decentralization make possible a database that cannot be altered or falsified, guaranteeing the veracity of all votes cast.

Blockchain technology ensures that voters’ identities and political leanings remain private. Votes recorded on the blockchain may be counted precisely by election authorities without the need to account for duplicate votes or verify the identities of voters, making manipulation impossible. It might have far-reaching effects on our democratic procedures, such as the prevention of voter fraud. Lobbyists and crooked politicians who don’t serve the interests of the American people might be eliminated by a blockchain-protected system that allows citizens to vote directly on public policy.

5.    Strengthening Health Care

SimplyVital Health, a blockchain service provider, has developed two blockchain-based tools to enhance healthcare administration. Lost medical records are a common problem. The healthcare industry’s information technology platforms are not interoperable. In addition, individuals who are victims of healthcare fraud end up paying for unnecessary procedures or services that they were never provided.

Envision a system that not only guarantees that no patient data will ever go missing but also protects the privacy of every individual involved. All of your medical records might be kept safely and, with your approval, accessible quickly and easily from any location. It’s a lot harder to commit medical fraud when there’s an official record. Blockchain technology may be used to save any business that is bogged down by paperwork, particularly ones with strict privacy requirements.

6.    Improved Inventory Management

It is essential for companies to have complete transparency into the location, condition, and history of all products in their supply chain. Provenance is also becoming an increasingly critical concern for customers. DeBeers plans to utilize blockchain technology to track diamonds from the mine to the buyer, allowing buyers to check the gems’ origin and ensure they are conflict-free.

7.    Efficiency Gains In The Insurance Industry

RiskBlock, one of the largest insurers in the country, is now testing the blockchain system. The purpose is to streamline the claims process and allow law enforcement and insurance companies to verify insurance coverage in real-time.

Ensuring that only legitimate claims are paid out, blockchain-enabled smart contracts may potentially revolutionize the insurance claims process. If, for instance, many claims were submitted for the same accident, the blockchain would immediately be able to tell. In addition, once the requirements for a successful claim have been completed, the payment might be initiated automatically, without the need for human participation, speeding up the claims settlement process significantly.

It’s quite clear that blockchain technology is only getting started and still has a ways to go before it reaches widespread use. But these use cases demonstrate how sectors are starting to see its benefits, and as blockchain technology develops, more businesses are likely to use it.

Closing Remarks

When change threatens to upend comfortable routines, people have a natural inclination to push back. It’s likely that many sectors and people will try to slow down blockchain’s progress, but widespread acceptance is still likely. Instead of attempting to combat blockchain breakthroughs, we should protect against their exploitation for malicious objectives that do not advance mankind. There’s a lot of hope that blockchain technology will make our lives better in the not-too-distant future. We should welcome this potential technology and guide it carefully so that it may be used for the common benefit.