When the term “blockchain” is mentioned, people assume it is merely a theoretical concept that cannot be utilized in the real world. In some cases, people erroneously link blockchain technology only to cryptocurrencies. Though cryptocurrencies are based on the blockchain, blockchain technology is not synonymous with only cryptocurrencies.
A blockchain is a distributed ledger of immutable records shared over a network of computers or nodes. Generally, blockchains are decentralized, meaning they are typically free from centralized authorities.
As a decentralized technology, it is controlled by a network of nodes or computers that keep each other in check. It is immutable and transparent. Its immutability means that no one can alter the records. By being transparent, the distributed ledger of records can be viewed by anyone, wherever they may be.
Blockchains are generally secure, and one of the main ways of breaking into them is if the attacker has at least 51% of the hashing power, which is practically impossible.
There are numerous real-world applications of blockchain technology, some of which will be discussed further below. Several industries are currently integrating this technology into their operations.
This article examines real-world applications of blockchain technology across several industries.
This article, as always, does not endorse any of the companies or brands mentioned. It is advisable to conduct your due diligence before utilizing them.
Real Life Use Cases of Blockchain
Blockchain technology has numerous real-life use cases, some of which will be discussed below.
Insurance
DeFi insurance involves obtaining insurance coverage against losses in the decentralized finance space for oneself or a DeFi protocol.
Users whose assets are locked on a DeFi protocol, such as an Automated Market Maker, may lose their crypto holdings if the platform is compromised. Individuals can choose to insure their funds against hacking-related losses, or the DeFi protocol can subscribe to the coverage, shielding its users from the risks associated with cyberattacks.
Typically, the coverage dictates the risks that it covers. It could be a smart contract attack, exchange hacks, stablecoin price decline, etc.
If the predefined event occurs, the insurance is triggered, and the user or DeFi protocol is compensated.
Risk Harbor is a parametric insurance company, while Nexus Mutual is a decentralized autonomous organization that provides coverage against smart contract hacks and multi-sig wallet issues.
Some traditional insurance companies are also incorporating blockchain technology into their architecture. For example, IBM is partnering with The American Association of Insurance Services “to create an open blockchain network that streamlines regulatory reporting to provide new insights, while enhancing timeliness, accuracy, and value for regulators.”
Banks
Crypto banks are financial institutions that combine elements of decentralized finance (DeFi) with traditional finance (TradFi). They take the TradFi features and improve them by integrating DeFi elements into them. Some DeFi protocols appear to be incorporating standard banking features into their architecture.
Revolut and Nuri are examples of crypto banks. Interestingly, they are not the only type of bank interested in blockchain technology, as traditional banks are also incorporating this technology into their infrastructure. JP Morgan and Citibank are examples of traditional banks keen on blockchain technology.
Entertainment
The entertainment industry has joined the train, with several industry players incorporating blockchain technology into their architecture to improve operations. Gaming companies are integrating blockchain technology into their operations. For example, B2Expand is churning out cross-gaming video games. Their games are available on Steam.
Some traditional gaming organizations are considering incorporating play-to-earn gaming mechanisms into their architecture. Play-to-Earn (P2E) games are blockchain-based games that allow players to earn crypto by playing the game. Typically, users are rewarded with crypto or NFTs that players can trade in the marketplace.
Undoubtedly, the P2E business model is unique to gaming as it combines two activities humans are fond of—money-making and entertainment. The core idea of P2E games is to reward players for putting in the time and effort to play and complete the game. An example of a P2E gaming ecosystem with real-life use cases is SolChicks.
SolChicks is an online battle royale-style game that has adopted the P2E business model and has its native tokens, SolCoins and SolChicks NFTs, at its core. While there are multiple ways for players to participate in the game, the gameplay primarily revolves around Player vs. Player (PvP) battles, where players in the game battle against other players of similar skill levels.
Spotify is another entertainment company that has expressed interest in blockchain technology. It purchased Media Chain Labs to develop platforms that would enable musicians to utilize a decentralized database.
Ticketing is a problem in the entertainment industry. Typically, under the old ticketing system, it is difficult for event organizers to obtain data about event participants, which could be crucial to rational decision-making about events.
With the aid of blockchain technology, an event organizer can use the data obtained to learn about the participants’ demographics and other important information that will aid in the organization of future events.
With blockchain-based tickets, event organizers don’t have to worry about investing lots of money to combat ticket counterfeiting or losing money to forgers.
Buyers can verify whether the event organizers minted the tickets by using an NFT ticket.
Guts is a company that is focused on incorporating blockchain technology into ticketing.
Financial space
Blockchain technology has numerous use cases in the financial space, mainly because of its immutability, transparency, and decentralization.
Platforms like StaFi and Synthetix are revolutionizing the financial space through synthetic assets traded on the blockchain.
Synthetic assets are representations of underlying assets. Staking Proof-of-Stake (PoS) tokens, for example, can result in user illiquidity. Binding tokens to the network during staking removes them from circulation for the duration of the staking period.
During that time, the user can not access their assets or utilize the tokens to trade or engage in other transactions. This is a problem that a synthetic asset staking platform seeks to solve. The concept of liquid staking means that users can stake while still having access to synthetic assets for other transactions.
StaFi users can stake their PoS tokens on the network and gain access to synthetic assets in the form of rTokens.
Users can swap tokens for free via platforms such as Bitcoin Atom. Users on the Nano network can transfer assets to one another without paying gas fees. Ripple may be known mainly for its token, XRP, but it is much more than that. The blockchain firm is actively involved in revolutionizing the financial sector.
Ripple is creating payment solutions for traditional and decentralized financial organizations such as banks, crypto exchanges, etc.
Smart Valor is a company utilizing blockchain technology to democratize investments, offering users access to opportunities that were once ignored.
Charity activities
Globally, millions of people have benefited from charity activities and organizations. Some charity initiatives aim at poverty alleviation, improving healthcare delivery, education, and so on. Regardless of the type of activity, there has been a growing demand for greater transparency concerning donations and the use of funds by organizations.
A public blockchain is highly transparent, unlike a traditional database system. For example, BitGive is creating a global donation ecosystem that leverages blockchain technology to ensure transparency, providing donors access to information concerning their donations and how the funds are utilized. Some charities, such as Medic Mobile and Save the Children, have begun partnering with BitGive to make this possible.
Companies such as Utopi are also working tirelessly to incorporate transparency into charity activities. Charities that partner with this blockchain firm allow donors to track the donated funds and their usage.
Healthcare
Blockchain technology has the potential to improve the healthcare sector significantly.
It can aid in the sharing and protection of medical data, drug research and development, drug supply chain management, claims fraud, filing system management, and the management and transfer of medical information.
Companies like MedRec provide patients’ medical records to healthcare providers simply and efficiently, reducing the challenges associated with data exchange between healthcare facilities.
In Conclusion,
- A blockchain is a distributed ledger of immutable records shared across a network of computers or nodes.
- Blockchain technology has found its way into insurance, with the likes of Nexus Mutual and Risk Harbor as notable examples.
- Blockchain technology is also disrupting the financial industry; Ripple and similar blockchain firms are creating global payment solutions for companies using blockchain technology.
- Some prominent organizations in the entertainment industry, such as gaming firms, have also incorporated blockchain technology into their architecture to improve operations. An example is SolChicks.
- JP Morgan, Citi Bank, and similar traditional banks seem to have caught the bug of blockchain technology, as they are currently working to integrate it into their operations.
- As always, conduct your due diligence before using any of the companies listed above.
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