How blockchain real technology is enhancing the world’s applications

Most people are familiar with blockchain technology, courtesy of cryptocurrencies like Bitcoin, Ethereum, and Litecoin. The truth is that blockchain has immense potential other than just cryptocurrencies. Blockchain technology provides excellent support for many applications, from use in financial services, supply chains and even government.

Many governments and municipalities are already enacting new laws that involve the use of blockchain. Governments and organizations are using blockchain to address a variety of specific tasks such as fast, efficient value transfer, and keeping transparent and immutable records of transactions with a reliable audit trail.

The list below describes several blockchain applications that have been adopted by both business and industry.

Blockchain accelerates IoT device communication acceptance

Smart devices make up the Internet of Things (IoT). By storing the data collected from these devices in a blockchain, users can make data immutable and thus increase the difficulty of services being tampered with by hackers and cybercriminals.

Blockchain IoT also provides digitization of assets with sensors so that organizations can label their assets and provide a transparent tracking system. Digitization enables the ability to identify the location and position of objects. Additionally, blockchain can store, manage, protect and transfer all this information when needed.

How does this work? With a blockchain-based application, each device receives a unique identifier, and users hold a password accessible through their smartphones. This password enables users to manage each device knowing that all transactions and messages are encrypted and traveling through a secure network. All configuration changes to devices are stored in a tamper-proof blockchain solution, making all configuration changes auditable.

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Blockchain simplifies and secures legal and personal documentation

Smart contracts are another growing application area of ​​blockchain technology. These contracts basically remove the arbitrator by resolving issues related to trust. This way agreements between two parties can be made more efficiently and with more confidence. Blockchain use cases in the smart contract category include everything from smart contracts in insurance to copyright management, clinical trial tracking, and asset ownership transfers.

Personal identity security is another area where blockchain is contributing heavily. Blockchain could make record-keeping more reliable by encrypting personally identifiable assets and allowing citizens to access this information. With blockchain technology, individuals can control their digital data and, as such, the way it is accessed and used by different parties.

The same applies to wills and inheritances. Digital wills and signatures are a convenient way to create a will, as they are at significant risk of fraud. Simply put, individuals can benefit from blockchain technology to prevent the tampering of their wills. The testators can distribute their assets to the heirs through a ‘crypto-will network’, which can only be accessed by authorized related parties. It is essentially built as a smart contract which can then be automatically executed upon the passage of the testator.

Blockchain applications galore in the financial industry

Blockchain has had an impact on many different investment management activities. Asset tracking, reporting, trading and settlement can benefit greatly from blockchain. Blockchain offers various capabilities to improve investment management processes, allowing everyone to easily access a single source of truth. The transparency of the blockchain enables each party to easily validate transactions while improving overall data security as the data is stored in immutable records.

The reality is that existing trade finance processes are inefficient and have weak points that allow fraudulent trading. Blockchain can digitize trade finance to enable transparent governance while also reducing the complexity and number of middlemen involved. In addition, it provides faster processing with less risk of fraud, counterparty and human error.