Use Cases for Blockchain: Top 5 Real-Life Usage
Many businesses are embracing blockchain technology to simplify tasks in their firms. At first, Bitcoin made Blockchain technology to gain popularity but later came in the use cases which tried to leverage track of transactions with the help of technology. According to experts, Blockchain can be used to do many things starting from regulatory compliance to data management.
What is Blockchain?
Blockchain is a way in which two parties share information in an automated and safe manner with a small transaction fee. This is how the blockchain transaction works:
· One person creates a block to initiate a transaction
· The block is verified on a network with many computers distributed worldwide
· The block is then added to a chain kept across the internet
· The chain creates an exceptional record that has a traceable history
Top 5 Real Life Usage of Blockchain
What are some of the common use cases for Blockchain? As mentioned earlier, companies are using Blockchain technology in various sectors of their businesses. Below are some of those applications:
1. Use case for Blockchain in marketing
Marketing on digital platforms is facing tremendous problems in this age. The companies gathering users’ data are getting attacked by hackers to steal the data and advertising revenue generation with fraudulent clicks are the biggest problems that the marketing industry is currently facing.
Blockchain uses consensus protocols and cryptographically secured mechanism to store the data, only the users who are authorized to access the data can see it by using the provided cryptographic keys. If the Marketing industry uses blockchain’s centralized public ledger system to store and share users’ gathered data then hackers might steal the data but they will not be able to see and use it.
A Blockchain-based identification system can be developed using a distributed public transaction ledger system which offers a digital signature and verification system to identify and authenticate people. This Blockchain-based authentication system will ensure that no false clicks pass through to generate revenue on ads with fraudulent clicks.
2. Use case for Blockchain in Quality assurance
Companies throughout the world are suffering from the problem of lost packages in transit and counterfeiting of products. Blockchain’s distributed ledger system can be used by companies to record the unique identification numbers and logistics data in the transactions. The recorded data in blockchain’s public ledger cannot be modified so this information can be used to check from where the packages are getting lost and consumers can check whether the delivered products are genuine or not.
3. Use case for Blockchain in Trading & Payments
The blockchain-based cryptocurrencies have risen in the market due to the trust issues on centralized authorities i.e. Central banks. Cryptocurrencies offer a distributed trust mechanism over the archaic method of centralized trust in case of Fiat currencies. The distributed trust mechanism works on consensus protocols (a set of rules to get the majority of authorizing members for adding some information in the blockchain) which varies from currency to currency. Cryptocurrencies are now being traded on exchanges as well being used as a payment method just like our conventional fiat currencies.
Companies used to handle online payments using platforms like PayPal and credit cards. PayPal was the most popular methods but with several downsides. For example, some countries like Nigeria are not allowed to use PayPal. Therefore, Blockchain application is of great benefit to people living in such areas.
Aside from PayPal and credit cards, it’s possible to make international online payments through cryptocurrency. Blockchain has many tested wallets that can secure storage of money. Have you ever met companies that pay online through Bitcoin and wondered what that was? Well, that’s what Blockchain technology can do.
People who have problems in using certain methods of payment can use blockchain to receive money. Through the blockchain payment processing feature, your business can pay employees funds directly and safely in any parts of the world.
You don’t need an intermediary to do this. Aside from that, transaction costs in Blockchain technology are minimal. You also don’t have to wait for hours before the transaction gets processed. Everything happens instantly because there are no intermediaries.
There is a specific Deloitte study which revealed that implementing Blockchain technology in back transactions minimizes the expenses by an average of 2-3% of the total amount. It also ensures instant payments across international borders. This is an excellent improvement in the traditional payment systems.
4. Use case for Blockchain in HR
Human resource teams deal with recruitment, sourcing new talent, promoting and growing a company. Human resource managers are an inevitable part of the businesses. However, they can either improve or worsen the condition of that business with their recruited human resources. The things get worse when some candidates include false information in their resumes and got selected which consequences to poor performance in a firm.
Human resource managers can fail in getting good new talent during the recruitment process because of less transparency across industries in case of employees’ data. From a report by the HireRight, it was disclosed that 85% of employees lied in their resumes. Until now there was no sophisticated idea to solve this problem but the use of blockchain in the human resource recruitment process can do the wonder.
The firms can use a public ledger to keep professional information in the blockchain. They can provide their staff with a digital ID which stores relevant data about essential certificates, salary progressions, and career trajectory. The information is digitally signed by employers so whenever this employee switches job to another firm then the next employer can verify the authenticity of the information provided by the person.
In the future, industries, government buildings, and institutions can work together to offer transparent and efficiency in the world of professional recruitment. A person’s information can be embossed on a specific identification of student that can be kept in Blockchain. Through this, employers can be sure about the details of candidates before hiring them.
5. Use case for Blockchain with Smart contracts
Smart contracts were introduced by Ethereum cryptocurrency in 2013. Smart contracts are computer set of rules made to digitally verify, facilitate, or enforce performance or negotiation of a contract. We can compare them with the way vending machines operate. Smart contracts don’t need the involvement of third parties in any process.
Smart Contracts replaces conventional contracts and the intermediaries that were responsible to enforce the participating parties to honour the contract. One party will make an upfront payment to blockchain to get involved in a smart contract and the other party will offer the product or asset. In Smart contracts Blockchain is the intermediary to enforce both parties to honour the contract, this intermediary cannot be tricked or bribed to give biased judgements. Hence, blockchain as an intermediary is best to hold the financial securities for both parties.
Let’s say if a person posts an add to rent an apartment with a smart contract then a potential tenant has to just agree on the terms of contract and pay an upfront payment to the blockchain. Blockchain will deposit the rent into the apartment owner’s account and deliver the digital keys of home to a tenant. The keys will change after every periodic cycle for which the apartment was rented and the tenant will have to pay rent in order to get the new keys. Smart contract application is already being used by companies like Slock to help their customers rent some stuff after agreement of the terms by both parties.
Blockchain web applications play a vital role in many aspects. Firms can use it in the hiring process to ensure that they hire candidates with the right qualification. Besides that, it enables firms to pay remote workers without relying on PayPal or credit cards.