Blockchain technology has taken the financial sector by storm in the tangible form of cryptocurrencies—but that's not all it's prone to do. This type of tech seamlessly accompanies numerous industries with a potentially endless amount of applications. And while that might seem like hyperbole, it's actually true. Any industry that could benefit from more fairness and transparency is a prime target for the future of blockchain tech.
A practical person might be thinking that while that sounds wonderful, those aspirations seem lofty for any type of tech. But blockchain tech can help save businesses time and money, and anything that translates directly to a costly resource is destined to get some major traction. Real-world blockchain uses are already improving the operational systems of institutions, organizations, and even governments. Let's take a look at the practical, tangible applications we're expecting to see the blockchain in the near future, as well as ones that have been implemented already.
Transferring money is one of the most commonly used blockchain applications. By cutting through bureaucratic red tape, making ledger systems in real-time, and reducing third-party fees, the largest banks benefit most from taking advantage of these digital transactions. Cryptocurrencies are used during these transactions, and although factors like the Bitcoin price fluctuate, these private and secure transactions are more advantageous to big banks than the dollar may be, depending on the context.
Smart contracts are also beneficial. They're just like a regular contract, but they operate independently. Essentially, the rules of the contract are enforced in real time on a blockchain. By getting rid of go-betweens, smart contracts significantly reduce the margin for human error, adding layers of accountability for all parties involved.
Personal identity security also benefits extraordinarily from blockchain tech. Blockchain can be utilized to create a secure digital identity that is tamper-proof. No central authority is necessary to verify this identity, taking some power out of the hands of third parties and effectively giving it back to the person being identified.
One industry that doesn't necessarily come straight to mind when you think of blockchain tech is healthcare, but some of the most important applications can be found there. Blockchain tech can be used for storing medical records, allowing them to be accessed by authorized parties only.
As far as saving companies money is concerned, there's plenty to be said about logistics. As goods move through a supply chain, they can be tracked effectively and efficiently with the correct application of blockchain tech.
If a company needs a secure network for IoT devices to communicate with each other, they can utilize blockchain tech and eliminate the need for a central authority. This can increase efficiency and reduce energy costs.
Last but not least, one of the most popular applications of blockchain tech lies in non-fungible tokens or NFTs. These unique digital assets can be bought, sold, and traded on blockchain platforms.
No matter how you choose to use blockchain technology, it's one of the best ways to increase security and transparency in any industry. As we move toward a technological future, we will see an increasing amount of actualized applications that more and more individuals can take advantage of. Before we know it, everything will be on a blockchain—we'll see you there if you're not there already!
