Real-World Blockchain Use Cases You Should Know

According to a 2019 Forrester Blockchain survey commissioned by EY, preservation of data integrity was the most popular use case for Blockchain adoption, stated Chen Zur, EY US Blockchain practise leader. About half of all respondents said they prioritise use cases that will increase efficiency and allow new revenue models, including supply chain track and trace, payment support operations, and document flow digitalisation.   

Besides cryptocurrency, Blockchain has several uses in financial institutions, supply networks, and the public sectors. It provides enhanced security, more transparency, and quicker traceability. Governments are enacting new legislation to encourage the usage of Blockchain to support Blockchain applications. For example, signatures protected by Blockchain technology are permitted under Arizona law.   

Despite these initiatives, one of the most significant barriers to Blockchain investment is a need for more expertise and understanding of the technology. In this blog, we will explore Blockchain and its use cases. 

Table of Contents 

1) What is Blockchain Technology? 

2) How does Blockchain Technology Work? 

3) Blockchain Use Cases 

4) Conclusion

What is Blockchain Technology? 

Blockchain is a recording technique that makes it complex or difficult to change, hack, or manipulate the system. A Blockchain is a distributed ledger that records and distributes transactions throughout the Blockchain's network of computers.    

Blockchain technology is a system that maintains public transactional information in several databases, known as the "chain," in a network connected by peer-to-peer nodes. This type of storage is commonly known as a digital ledger.    

Every transaction in this ledger is authorised by the owner's digital signature, which authenticates the transaction and protects it from manipulation. As a result, the information contained in the digital ledger is highly secure.    

In a nutshell, the digital ledger is similar to a Google spreadsheet shared across several computers on a network, where transactional data are recorded based on actual purchases. The intriguing aspect is that everyone can view the data but cannot modify it. 

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How does Blockchain Technology work? 

Many firms across the world have incorporated Blockchain technology in recent years. But how precisely does Blockchain technology work? Is this a substantial modification or a simple addition? Blockchain innovations are still in their early stages and potentially disruptive in the future, so let us begin demystifying this technology.  

Blockchain is a combination of three technologies:  

1) Cryptographic Keys  

2) A peer-to-peer network containing a shared ledger  

3) A means of computing to store and record the transaction of the network 

Cryptography keys are composed of two keys: private and public. These keys aid in the completion of successful transactions between two parties. Each person possesses these two keys, which they use to generate a secure digital identity reference. The most significant component of Blockchain technology is its secure identification. This identification is known as a 'digital signature' in the cryptography realm and is used for authorising and managing transactions.   

The digital signature is combined with the peer-to-peer network; many individuals working as authorities use the digital signature to achieve a consensus on transactions and other problems. When they authorise a transaction, it is validated by a mathematical verification, resulting in a successfully secured transaction between the two network-connected parties. To summarise, Blockchain users utilise cryptographic keys to accomplish various digital exchanges through the peer-to-peer network. 

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Blockchain Use Cases 

Apart from Bitcoin, Blockchain technology has various other applications. Below, we have outlined some Blockchain application use cases in finance, trade, government, and other industries.   

1) Smart Contracts  

The primary function of computer programmes known as "smart contracts" is to automate the execution of contract provisions when situations warrant it. The computer code follows a basic instruction of when/if/then to guarantee that all parties receive the advantages or penalties that the contract and actions need. Smart contracts are helpful and utilised by most sectors today for a range of functions previously regulated by paper contracts. The Blockchain also keeps a permanent record of every action and reaction in the transaction.  

a) BurstIQ  

BurstIQ leveraged Big Data-based smart contracts to simplify sharing sensitive medical data between patients and clinicians. These contracts define the scope and parameters of data sharing. They contain tailored health plans and other relevant data for specific patients.   

 b) Propy  

Propy is a real estate platform with a Blockchain-based title registration system. All transactions for brokers, realtors and their clients are automated. Propy's use of Blockchain technology enables immediate title issuance and the purchase and sale of properties using cryptocurrency. 

2) Personal Identity Security 

Personal identity theft and hacking are the most common types of cybercrime. In 2019, almost 14.4 million people were victims of identity fraud, which equates to around one in every fifteen people. Identity theft may take numerous forms, from hacking and breaching personal information to falsifying documents. Blockchain technology can prevent this threat by keeping critical personal information (such as social security numbers, birth certificates, addresses, and PANs) on a decentralised and immutable ledger.    

The current centralised Web 2.0 confronts essential issues such as selling personal data to other parties, identity theft, password and username mixing, and more. As a result, it cannot provide users with Self-Sovereign Identification (SSI). On the other hand, Blockchain can give consumers complete control over the information in their digital identities. As a result, Personal Identity Security is one of the Blockchain use cases that pave the way for SSI.   

Large businesses are aware of the requirement. They are working on apps that will make it easier for the general public and their employees to create digital IDs. Creating a global identity will take time, but the effort has already begun.   

a) Civic  

Civic is a Blockchain-based platform that includes a digital blockchain wallet that functions as an identification card. It gives individuals more control over their digital identities, which empowers them. The aim is to achieve Blockchain-powered identity verification, privacy-focused health status, and peer-to-peer Bitcoin transactions. Civic allows you only to share your identity and personal information with firms you trust.   

b) Evernym  

Evernym's Sovrin identity ecosystem enables you to manage and govern your identity on the Web. Sovrin keeps your personal information and acts as a communication agent between you and entities requesting your private information, verifying the data in real-time. You can design and launch self-sovereign identification solutions using Evernym's tech stack and market resources. 

3) Real Estate 

Real estate could be better. To make a purchase, you must go through a lengthy process of documentation, verification, and ownership transfer. There is a lot of paperwork involved in purchasing or selling a property. Furthermore, you must perform verification work for both parties. When you apply for a loan, things become more complicated since additional documentation is required.   

Finally, there is a risk of fraud. Sellers that sell their property to many parties at the same time are likely to commit fraud, which makes them difficult to catch.  

Blockchain technology can help you to solve all of these problems. If you want to buy a property faster, you should use Blockchain. Real-world assets can be tokenised using Blockchain technology. Sellers can utilise smart contracts to sell their land or property.   

They can code a legal process in the smart contract and execute it when the requirements are met. For example, if the buyer pays the sum, the buyer becomes the property owner in a matter of minutes. Blockchain in real estate can help eliminate fraud by assuring transparency, immutability, and security. 

a) Alfa Bank and X5 Retail Group 

Distributed Treasury and Cash Management (DTCM), a blockchain-based customised solution, has been developed by Russian Alfa Bank and its partner X5 Retail Group. The DTCM, a Bank-as-a-Service platform, enables Alfa bank clients to maintain their payments, deposits and loans within the holding. 

b) Emaar Properties 

Emaar Properties, a real estate corporation in the United Arab Emirates (UAE), has established its Blockchain token-based platform. The platform is intended to reward Emaar customers with tokens in exchange for their loyalty and recommendations. EMR tokens will be tradable with other users and redeemable in Emaar's real estate, e-commerce businesses, hotels, and malls. 
 

4) Payment Processing and Money Transfer 

Payment processing is another real-time Blockchain use. When was the last time you tried to transfer money to someone in another country? If you did, you understand how difficult it is to send money abroad.   

When you work in another nation, the situation becomes quite different. Transferring money internationally can also result in a slew of expenses. As a result, persons earning abroad earn less than they do at home. Furthermore, you must wait a few days before a transaction is completed. All of these limits are imposed by banks and foreign currency laws.   

Blockchain is the answer to money transfers, particularly overseas money transfers. They can save time and money as Blockchain allows for rapid transfers across borders.   

Banks also utilise cryptocurrencies to manage international funds since they are faster and less expensive than traditional methods. Ripple is one of the cryptocurrencies used for money transfers supervised by banks. It is mainly used for interbank transactions.   

This is one of the best Blockchain techniques and real-world applications. 

a) Circle   

Circle employs USD Coin (USDC), the fastest-growing regulated Stablecoin, to assist people in running and establishing their online businesses. Around seven cryptocurrencies are available on the platform (Bitcoin, Monero, Zcash). Circle handles about $2 billion in bitcoin investments and trades every month.   

b) Chainanalysis  

Chainalysis provides Blockchain data and analysis reports to financial institutions, exchanges, and government authorities in more than 40 countries. It mainly assists organisations in monitoring bitcoin exchanges. The compliance and investigative tools provided by Chainalysis allow you to monitor and identify fraudulent transactions, money laundering, and compliance issues, allowing you to develop a trustworthy Blockchain-based economy. 

5) Logistics 

The most pressing concerns in logistics are data silos and a lack of collaboration and transparency. Such challenges are exacerbated by thousands of businesses operating in this sector, costing businesses time and money. This is where the data transparency provided by Blockchain comes into play. Blockchain technology can recognise data sources and automate procedures, increasing trust and transparency in the logistics business. 

Blockchain technology is widely employed in the logistics business to trace the transit of goods across numerous locations. The Blockchain's transparent data recording regarding goods movement will assist all stakeholders in understanding the precise location of items. Thus, logistics is one of the Blockchain technology use cases that ensures proper management of all organisations involved in the transaction. 

Besides real-time tracking of goods, Blockchain integration in the supply chain can assure cash transaction security. It also reduces delays, additional costs, and personnel failures. 

a) DHL 

Everyone is aware that DHL is a global shipping giant. It uses Blockchain-powered logistics to track and record shipment information while ensuring transactional integrity. 

b) Maersk 

Another shipping giant, Maersk, has teamed up with IBM to integrate Blockchain into the global trade scenario. Maersk aims to use Blockchain technology to better analyse and optimise supply chain management in blockchain and track items across international boundaries in real-time. 

6) Insurance

The subsequent Blockchain use on our list is insurance claims. In reality, Blockchain can be used to enhance insurance claims. Insurance is one of the significant businesses that require reform. If you get insurance, you must go through extensive hassles when claiming it.  

It requires constant interaction with your insurance agent and many documents.  

The claims procedure is eased with Blockchain's help since it can securely store information and be verified for processing the claim. After the shares are uploaded to the Blockchain network, they are dispersed to the involved parties.   

Smart contracts can also assist in enhancing the automation of the claims process, allowing users to submit claims and get payments after they are approved. This is possible with some types of insurance, but not all. As you can see, Blockchain for insurance has a lot of potentials. 

a) Lemonade 

Lemonade offers insurance to renters and homeowners by combining AI and DLT. The Lemonade Protocol is an intriguing concept. It collects a monthly set charge from each participant and allocates the rest to future claims. 

 It seeks to remove prejudice from claim submission and payment by categorising clients based on the charity they select when signing up. Lemonade relies on AI-powered algorithms to validate claims. 

b) Fidentiax 

Fidentiax, a Blockchain marketplace for selling insurance policies, introduced its digital ledger product (ISLEY) for insurance plans. The product acts as an insurance buddy for customers. It allows users to save, view, and receive insurance portfolio notifications. 

7) Education 

Blockchain technology can be incorporated smoothly into control systems and document storage. The inability to change data saved in the system is the primary advantage of this Blockchain use case. The data can be added but cannot be overwritten. Moreover, the document's legality can be easily validated because everyone can see who wrote it and when. 

Few people have used Blockchain's benefits in education. The University of Nicosia in Cyprus is one of the pioneers. This university employed Blockchain technology to store certificates and degrees. Furthermore, it is the first institution to accept cryptocurrency as payment for tuition. 

a) ODEM 

ODEM is a blockchain-based educational online platform that provides affordable learning courses that can be tailored to the student's interests. Students can connect directly with academic professionals and agree on the ideal learning experience. The platform employs blockchain-enabled payment systems and smart contracts to incentivise and reward students for their educational achievements and drive professors to produce better courses. All certificates received by students are securely recorded on the Blockchain. 

b) Sony Global Education 

Sony Global Education enables numerous educational institutions to share their students' accomplishments on a distributed ledger. The Blockchain network serves as a repository for each student's digital transcript, which can later be utilised for university transfers. Sony intends to expand the platform and establish the infrastructure for the next-generation educational ecosystem in which professors and students collaborate and get cryptocurrency rewards. 

8) Internet of Things (IoT) 

The Internet of Things (IoT) industry quickly expands with billions of linked devices. According to the most recent forecasts, there will be 50 billion devices worldwide by 2030. Since this number rises, it will increase the number of vulnerabilities, as hackers can breach your data through a single linked device. Data breaches can be significantly prevented by incorporating Blockchain technology into IoT devices. 

a) HYPR 

HYPR enhances cybersecurity by merging smartphone technology with the highly secure FIDO token. This is how its True Passwordless Authentication feature works. HYPR secures IoT devices via decentralised credential systems and biometric authentication. 

b) Xage 

Xage claims to be the world's first Blockchain-based cybersecurity platform designed specifically for IoT firms in energy, transportation, manufacturing, and other industries. Xage's technology is capable of handling and managing billions of devices at the same time. It provides zero trust identification, data security, and local/remote access for cloud, OT, and IT physical and digital operations.   
 

Conclusion

It is surprising to see how Blockchain has transformed numerous businesses and how Blockchain use cases continue to reinvent with time and changing trends. Blockchain is essential in many industries, from finance to real estate to the supply chain to healthcare. With the massive increase of Blockchain use cases by industry and the widespread acceptance of Blockchain in numerous sectors, it will undoubtedly be the face of the future. 

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