Moreover, this tech as such came about first in the form of a cryptocurrency (Bitcoin), so it won’t be an outright lie to claim that crypto is blockchain.
But the reverse is not necessarily true. Blockchain may not be crypto these days, and in this short piece, we are going to explore its application beyond cryptocurrencies and look into how it can help meet the needs of industries other than crypto space.
Banking and Financial Services
It is often said and then repeated that cryptocurrencies will do away with banks and other centralized financial institutions. Meanwhile, the latter don’t sit idly on their hands but are actively deploying blockchain where it suits them most. Blockchain has already proved instrumental to banks in trade finance, a sector that plays a huge role in global commerce.
Banks are participating in this market by issuing bank guarantees and letters of credit, and blockchain streamlines the whole process by eliminating the need to make several copies of these docs. For example, a bank guarantee can now exist only digitally on the blockchain, cryptographically signed by the counterparts and updated in real-time as required.
So, if you happen to be a bank clerk in any of these departments, well, the bad news is, blockchain may in fact make your life bitter, not better – you may get kicked out.
Supply Chain Management
Supply chain management is about handling the flow of goods and services starting with the logistics of raw materials and ending with the delivery of finished goods and order fulfillment. Supply chains often suffer from the lack of transparency and traceability. Blockchain comes to the rescue by sharing trusted data among supply chain participants as well as end-users.
Manufacturers and suppliers want more visibility and efficiency with fewer disputes, while retailers and consumers want authentic products at lower prices. A blockchain-enabled supply chain helps them all by giving access to the relevant information about the product price, manufacturing date, and location, delivery route and status, quality, and certification.
Put simply, if you’re not quite happy with your order, the blockchain tech will help you get back at whoever is the cause and origin of your dissatisfaction.
Real Estate and Properties
Real estate is a sector where the entire industry is built upon and revolves around the right of ownership. Because no one can retroactively delete or change even a single entry in a blockchain, it’s little wonder that the technology is taking over the industry. After all, what can be a better tool to prove this right if not an immutable, incorruptible public ledger?
Blockchain allows to create decentralized property registries that considerably speed up the registration procedure, simplify the process of checking data entries, and reduce the risk of fraud and data manipulation. With blockchain, assets can be tokenized and further fractionalized, thereby enabling token holders to possess expensive properties collectively.
As a result, you can now legally own a portion of a palace.
Gaming and Entertainment
Gaming and entertainment industry as a whole are two other huge industries that got revilatized by blockchain technology. Fan tokens are a powerful example of that kind – blockchain has dramatically changed the way how clubs engage with their fanbase by improving interaction between fans and promoting a deeper sense of community.
On the other hand, counterfeit tickets and ticket scalping have always been the pain points for event organizers. As a regular fan, you are unlikely to buy a ticket to a major sporting event or music concert at the face value. Blockchain solves both of these issues by preventing ticket forgery and cutting down massively on speculation.
The rise of non-fungible tokens (more about them later) facilitated the emergence of a new gaming paradigm that came to be known as a “play-to-earn” model. Blockchain-based games allow players to invest their time, money and effort in the game and its assets with the goal of obtaining returns in monetary terms.
Long story short, if you are a die-hard gamer, that can be your authentic ticket to riches.
Arts and Digital Collectibles
One of the selling points of blockchain is its capacity for asset tokenization. Tokenization refers to the issuance of blockchain tokens representing real assets like securities, commodities, properties, etc. Tokens that are intentionally made unique are non-fungible tokens (NFTs), and they play right into the quirk of human nature known as collecting.
And this feature led to the inception and explosive growth of the market for digital collectibles and rare arts. These can be virtually anything as long as they are considered unique by the general public. Works of art, both real and digital, fit this definition perfectly. In a sense, it can be said that NFTs created an industry in its own class.
Enarmed with blockchain, everyone can become a digital collector today. So, what are you waiting for?
Blockchain has made inroads into a number of very diverse industries – apart from creating a few new ones in the process. In addition to the aforementioned industries, we see blockchain technology used in such fields as healthcare and insurance, travel and transportation, public services, and electronic voting, to name but just a few.
And relating to our earlier point, it’s totally justified and appropriate to say that the tech has already expanded far beyond its original field of application, that of cryptocurrencies.