How Blockchain Revolutionizes Businesses: 15 Use Cases
Blockchain is a shared tamper-proof ledger that simplifies the recording of transactions and asset accounting in a business network. An asset can be tangible (house, car, money, land) or intangible (intellectual property, patents, copyrights, branding).
Almost anything of value can be tracked and sold using blockchain. This technology reduces risks and costs for all parties involved. Today, it is increasingly used in various business areas. We will review the most prominent blockchain use cases below.
Finance
Blockchain use in banking and financial services is growing exponentially. It is expected to reach $22,46 billion by 2026. For comparison, this figure is now $2,53 billion and was $0,28 billion in 2018. The growing use of blockchain by companies of all sizes, which embed this technology in their finance-related processes, proves its efficiency. Below are the most common blockchain use cases in finance.
Money transfers
Money transfer, especially international, goes through several intermediaries. First, the sender goes to the ordering bank, then the currency is converted by an intermediary organization, and finally, the money goes to the recipient bank. With blockchain finance, things are much easier. Money is sent directly to the recipient without intermediaries and extra fees.
Deutsche Bank, Westpac, BNP Paribas have already started hiring blockchain developers to provide their customers with advanced money transfer mechanisms.
Stock exchange
This is another financial operation with multiple intermediaries: a broker, Central Counterparty Clearing House, Central Securities Depository, and the Registrar. The share trading process can take up to three days. However, the blockchain decentralized system removes all the intermediaries and allows for the running of share trading on multiple computers.
Nasdaq, ShapeShift, Strix Leviathan are organizations which use blockchain in share trading.
Crowdfunding
Crowdfunding encourages multiple investors to contribute small amounts to finance a single project. Blockchain app development companies enhance the transparency of investing operations and provide investors with new opportunities such as
asset tokenization
fraud reduction
lower fees compared to traditional crowdfunding platforms
Celo and Moralis are crowdfunding platforms which were created based on blockchain.
Healthcare
Blockchain in healthcare eliminates non-value generating processes, enhances data security, automates operations via smart contracts, makes claim processes faster and more efficient, and improves patient care. Understanding the benefits of blockchain, many healthcare organizations are taking advantage of this technology by adopting it for various use cases.
Identification of medical products
Counterfeit prescription medicines cause a vast number of deaths annually. With the help of blockchain, organizations and patients can verify the authenticity of pharma drugs by tracking their path from the manufacturer to the pharmacy. Companies can also check the quality of medical devices before purchasing them for health monitoring.
MediLedger and FarmaTrust are blockchain-based platforms for digitizing pharmaceutical business.
Health records
According to Johns Hopkins research, the third leading cause of death in the USA is medical error. The main reason for this unacceptable situation is poorly planned medical care resulting from the inconsistency of patient records. An immutable data ledger accurately saves medical history and allows doctors to quickly access up-to-date information from any hospital anywhere in the world.
Medicalchain is an example of a blockchain provider working with healthcare organizations.
Medical staff experience verification
Staff competence plays a key role in medicine and healthcare. Blockchain technology helps organizations track the experience of medical personnel and verify their professional level. By logging the credentials of doctors, nurses, and other medical personnel, medical organizations validate their experience and streamline the hiring process.
ProCredEx is a blockchain platform for medical credential verification that uses the R3 Corda blockchain protocol.
Legal activities
Legal activities are associated with a large document flow. Law firms document every affair and keep papers for different cases. In a digital world, advanced technologies can reduce manual work. Documents are translated into digital format. Some examples of the beneficial use of blockchain in the legal field are listed below.
Smart contracts
A smart contract is a program that performs specific actions when certain conditions are met. It allows for cutting deals without intermediaries and speeds up transaction flow. Blockchain-based smart contracts are used when selling goods, renting real estate, and leasing equipment. They eliminate the possibility of fraud and guarantee the fulfillment of obligations by both parties.
Nottario is a service whichallows documents to be notarised electronically using the Ethereum blockchain.
Intellectual property
The problem of intellectual property and copyright ownership is becoming more challenging in the Internet space. Blockchain app developers solve it by creating trusted platforms that store information about the first owner of a song/art/design or any other asset. Eliminating duplicate information, blockchain excludes the possibility of appropriation of other people's rights.
P&TS Intellectual Property, Orbit Blockchain, and Binded are examples of copyright services based on blockchain.
Digital signature
A digital signature is a cryptographic mechanism used to verify the authenticity and integrity of digital data. Once generated, it acts as proof that the message has not been falsified during its journey from sender to recipient. A blockchain signature is a reliable mechanism to conduct transparent transactions, reduce corruption of the process, and accelerate paperwork production in any legal activities.
Sign.co and Zoho are blockchain-based services for signature and timestamping.
E-commerce
E-commerce is evolving by attracting the latest technologies and innovations. Blockchain opens up new opportunities for online sellers by securing information exchange and simplifying asset tracking. Some companies have already adopted blockchain in their business processes. Below are various scenarios of using blockchain in e-commerce.
Product traceability
Users want to buy quality products and be sure of their origin, especially when it comes to luxury goods. Blockchain in e-commerce helps track the product history: material, factory, warehouse, retail outlet. As for groceries, blockchain allows for the checking of their organicity by showing their path from farm to table.
Louis Vuitton, Prada, and Richemont use blockchain to prove the identity of their branded products.
Decentralized transactions
With the help of cryptocurrency, e-commerce stores can process payments without intermediaries and commissions. In addition, retailers can create buyer whitelists to avoid fraud ‘false positives’. According to Fraud.com, more than half of all transactions are erroneously labeled as fraudulent, which results in a loss of income. Many e-commerce organizations are increasing their budgets on cryptocurrency project development to address this issue.
Shopify accepts cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
NFT marketplaces
NFT stands for non-fungible token. It allows the creation of a digital impression for any unique item: picture, photography, video, music, poem, etc. There are many platforms - NFT marketplaces - where you can place your tokens. NFT developers can focus on narrow specializations, for example, only game items or only art.
OpenSea, SuperRare, and Foundation are the most popular NFT marketplaces.
Supply chain
Any B2B is built on relationships with other companies, whether international partners or firms from the same region. Well-organized logistics contributes to business efficiency. It reduces downtime, saves money, and optimizes overall workflow.
Blockchain technology improves the logistics of companies . Below are listed some current popular use cases.
Unified document management system
Each participant of the supply chain uses its own local document management system, such as CRM, BPM, ERP or another. Blockchain providers can create a single digital document management system to allow supply chain participants to track the location of vehicles and cargo in real time, even at the micro level.
Slync, Chronicled, and Sweetbridge are just a few of dozens of blockchain software vendors that provide logistics services.
Сheaper delivery
A typical delivery scenario involves about 30 parties: shippers, consignees, 3PLs, carriers, government agencies, banks, insurers, etc. The delivery of only one consignment of goods involves exchanging more than 200 paper messages, and the paperwork cost is 10-15% of the transportation cost. According to IBM, blockchain could save the logistics industry $38 billion a year by automating business processes and reducing paper documents.
TradeLens is a logistics system that uses blockchain Hyperledger Fabric to automate supply chains and simplify delivery.
Freight market regulation
The freight market does not have clear standards and rules to regulate the responsibilities of the various parties. Blockchain development promotes fair marketplaces where companies can hire freight carriers on clear and transparent terms. Thus, when concluding a supply agreement, both parties can be sure of a responsible approach to its execution.
ShipChain is a blockchain software development company engaged in a fully-automated logistics system.
How to hire a blockchain development team
A blockchain development company is an organization that brings together professionals specializing in SaaS, IoT, AI/ML, cloud and is led by an expert with vast experience in blockchain apps. Before hiring a blockchain team, you need to discuss the project details and approve its budget, technologies, and deadlines. To ensure the team completes the project the way you expect, order a discovery phase. Upon its completion, you will receive a detailed development plan that describes all the stages of creating a blockchain solution.
