Any application that works with digital assets makes a good fit for blockchain. For example, in supply chain management, blockchain could be used to track products, ensure non-tampering, improve transparency, reduce costs, and so on. This could ensure food safety (with more traceable food enabled by supply chain tracking). Even in the travel industry, blockchain would allow secure payments, customer loyalty schemes, and better luggage management.
A single digital identity that works on multiple platforms can be easily achieved using blockchain. Thus, it would be immune to data breaches and not need physical documents. In addition, an improved model of KYC standards in banks will make way for smooth international transactions.
Voting can be completely transparent with verifiable, unchangeable, and trustworthy votes. Blockchain could also remove the need for trust in a notary system by proving proof of existence. Moreover, insurance can be automated via a faster approach, with easier ways to make claims and better ways to access information. Mediators can be removed to a certain extent.
Blockchain is a wonderful tool to protect creators with automated intellectual copyrights by taking actions automatically. Creators can also sell their products(like music or art) with no cuts from a central authority. In addition, blockchain can facilitate better management of electronic sports, efficient crowdfunding, and high-quality production processes in gaming.
And of course, if you’re reading about blockchain, surely you’ve heard of cryptocurrency: the electronic cash system that eliminates the need for middlemen and deals with peer-to-peer transactions.
Where Do You Need Blockchain?
Apart from being a distributed ledger technology, blockchain has various other features. So how do you decide if you need blockchain in your use-case scenario? Here are some things you must ask yourself to make this decision.
Do you want to be able to change your data frequently?
Immutability is an essential feature of blockchain. Data once entered remains the same forever, even though there are other ways to update the data. So, if you need to change records often, or if your business must fix or remove faulty records, blockchain may not be the best option.
Do you need to increase trust in your system?
If there is no trust in the organization, or there is the involvement of multiple entities, blockchain can be used to establish trust among them. The occurrence of any faults can be easily traced. However, if you already have participants who all trust each other, and transparency needs to be induced, blockchain may not be necessary.
Do you have specific performance requirements?
Although blockchain is known to be quick, there is still a lot of scope for improvement before it can be on par with other technologies in the market. If your business depends on good performance, blockchain may not be your best choice right now. The number of nodes necessary to make your blockchain feasible would incur higher computational expenses over conventional centralized solutions.
In short, blockchain must be used to manage and secure digital relationships. It should also be used for proper usage of decentralized networks, inducing trust in ecosystems, elimination of middlemen, and accurate data tracking. If you need to change transactions and the rules governing them frequently, you should not use blockchain.
To better understand the aspects of your business that can be improved using blockchain, call your Blockchain consultant in Houston, Texas today!