Blockchain has many real use cases in our daily life. It has some fantastic features that can benefit us in a very drastic manner. Some of these features include:
- Application of distributed ledger technology
- Cryptographically highly secured
- Encode of smart contract logic ability.
This means that to transact transparently on a ledger( smart contracts self execute transactions ) by multiple mutually untrusting users without the need for a trusted intermediary is allowed by blockchain.
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Let’s see some of the actual use cases of blockchain technology :
- Asset Tokenization
The most exciting use of blockchain in financial and real assets is in financial services and particular asset tokenization. Using blockchain technology, it has become easier to tokenize illiquid assets very cheaply and can also be efficiently fractionalized. They can be now traded and settled on-chain (third parties approach clearinghouses instead of going through a complicated and lengthy process of clearing and settlement process through) more efficiently now. This gives a room for unlocking liquidity for entrepreneurs, residential real estate owners, small business persons and also to alternative investments like previously illiquid venture capital and private equity, commercial real estate and art.
Overall what asset tokenization does is, it opens a vast opportunity for investors to diversify their investments. This results in enhancing liquidity and market depth of assets of the investors, which was otherwise didn’t trade actively and allowed asset owners to capture a liquidity premium
For asset tokenization Alphapoint, Polymath, Smart Valour and Harbor are working on platforms.
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- Supply Chain Management
Supply chain management is the next dedicated use case blockchain. Transparency is a significant issue faced by the majority of the firms in their supply chain. However, to access a database to act as a single source of truth, blockchains will allow multiple parties. The best thing about Blockchains is real-time results. This also helps in supply chain management as it provides a product to be documented in real-time.
Some significant benefits of blockchain in the supply chain management system are:
- enhance transparency into an otherwise opaque network
- stop counterfeits and thefts
- improves regulatory compliance
- reduces paperwork
- lessens costs significantly
If we see from a consumer’s point of view, to find if the product is what the manufacturer has claimed in a precise manner, blockchains can empower the end of it.
There are relatively few projects working on this like Vechain and Origin Trail.
- Digital Identity
The best part of blockchain technology is that it doesn’t have any centralized management or control. This doesn’t give any room to the hacker to do any illegal activity because of it’s decentralized nature of blockchains. This proves that when talk about digital identity management, then blockchain can be a perfect option to use. Instead of providing numerous documents to identify a self-sovereign ID can be used for any verification, and also they won’t have to go through any paperwork each time they need their identity verified. A single key that can be matched with an immutable ledger this all process can be done very quickly.
There are two notable examples of the project on digital identity management with the help of blockchain. And that is Civic and Uport.
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- Energy Market
Blockchain can be great in decentralizing energy market, which is commonly controlled by large corporations in all sort of market. If an individual is generating electricity from solar panels, then a blockchain can be used to record, trade and settle on a ledger. In a functioning distributed electricity market if electricity can be traded like any other commodity than it will respond to forces of demand and supply in full energy rather than being a fixed regulated price.
This will give a great opportunity to an individual to be both producers and consumers of energy. This will result in reducing costs and improve efficiency because now no one has to rely on a centralized grid.
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The best examples of peer to peer energy trading is Power Ledger and Grid+.
The current situation in healthcare is that the data of any patient is held across different institutions in various formats and standards. This makes it very complicated for the modern user’s expectation for instantaneous access. Blockchains can be used to store data of a patient on a ledger which is transparent and accessible to all in a standard format which is understood and accepted by all.
The best example of such a platform is Medicalchain.