Top Use Cases of Blockchain Technology
This is why we have created a guide that would allow you to know the most important blockchain use cases. Let’s go with the list!
- Processing Payments
- Supply Chain Management
- Smart Contracts
- Digital Identity
Blockchain technology has been used by different protocols, including Bitcoin (BTC), to perform payments. Bitcoin is the most popular cryptocurrency in the world and it is backed by blockchain technology. Every single transaction that takes place on the Bitcoin network is registered on a public blockchain. This public blockchain is a ledger that registers all the transactions that take place in the network. The main benefit of blockchain technology is that it allows for greater levels of decentralization. All the transactions processed on the Bitcoin network are decentralized, meaning there is no centralized authority controlling each transaction. Furthermore, there are companies such as JP Morgan that are using private blockchain ecosystems. These networks are used to perform internal transactions between companies and other parties.
Currently, there are hundreds of blockchain networks that allow users to process payments. The most popular include Bitcoin, Ethereum, Ripple and Litecoin, among others. Each of them has different characteristics and features.
Supply Chain Management
Blockchain technology, or decentralized ledger technology, can be easily used for the management of supply chains. That means that companies can create private blockchain networks (or use other blockchain solutions) to control the supply chain. For example, Walmart China is using VeChain’s blockchain technology in order to improve product traceability. This would allow companies involved in the supply chain process to track information without being modified by third parties.
At the same time, there are different blockchain networks that are allowing companies to track information about products purchased and sent abroad. This would have a positive impact on food quality considering it can be used to detect bad quality products.
Smart contracts are one of the best solutions implemented by blockchain technology. The most popular network working with smart contracts is Ethereum. These smart contracts allow firms, individuals and developers to create codes that can be executed automatically when key conditions are met.
This can be used to perform payments, gamble, supply power to chain networks, improve processes and many other things. These smart contracts are a key part of blockchain networks. Nowadays, these smart contracts are also used to exchange cryptocurrencies and for traders to profit from price fluctuations.
The decentralized finance (DeFi) market and decentralized applications (dApps) are based on blockchain smart contracts.
Due to the immutable and secure features of blockchain networks, it is possible for governments, institutions and organizations to issue digital identities on the blockchain. That means that it is possible to create companies’ and individuals’ profiles using distributed ledger technology. These profiles will have valuable information about the person or firm and would be publicly accessible – if the network is open to the community – or privately – if this is built for a private company or organization. Finally, firms and governments can also use blockchain technology to store documents and other valuable data. This can have a positive impact on government transparency and information available to the public.
There are different blockchain networks using these services. However, there is still a lot of potential for this industry to continue growing in the coming years. Other use cases could appear, pushing demand for distributed ledger technology even higher.
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