Blockchain technology, as its name implies, is based on the “chain of blocks,” which contains information that is interconnected and that functions as a kind of “database” protected by advanced cryptography, which operates in a decentralized and that can keep a record of all the operations carried out, in a transparent, reliable and secure way.
The term “blockchain” became famous thanks to Bitcoin; however, the application of blockchain technology transcends the cryptocurrency environment, allowing the development of different tools, applications, and services. Here are some practical applications of this technology:
Monitoring in supply chains
Blockchain technology allows monitoring of supply chains, making the process more transparent and effective; With this tool, companies can more effectively identify items in real-time or detect deficiencies in their supply chains. Blockchain technology allows companies and consumers to observe the performance of a product in different aspects; for example, they can know its movement in real-time (from its place of origin to the retailer), and if specific standards of quality, an example of this is the transport of food since unlike other products, food is “perishable” goods, which must be transported within specific parameters of time and conservation so that they do not deteriorate.
One of the big problems with personal IDs is that they can be forged by unscrupulous people or controlled by authoritarian or opaque governments. With blockchain technology, universal systems can be developed to validate an individual’s identity transparently, accessible, and secure.
Copyright laws can be challenging to apply in a world where digital content is easily accessible via Internet; in this sense, blockchain technology can be used to protect the copyrights of content creators or to authenticate the ownership or trading of a digital asset. An interesting example in this regard is what corresponds to the current NFTs (non-fungible tokens).
Although electronic voting already exists in some countries, the main challenge is that not all countries have the resources to implement it or that such online voting systems are unreliable or transparent. Blockchain technology makes it possible to provide the «digital vote» with sufficient transparency to make it reliable and easy to implement in various countries. By using blockchain technology, any auditor can easily detect any attempt to modify the results of the electoral system of a country, state, or city.
Loyalty reward programs
With blockchain technology, companies can implement loyalty reward systems that are transparent and effective; for example, the design of a token-based system that rewards consumers would encourage customers to return to a particular store or premises to do their shopping. The advantage of this system is that users can see the system’s operation externally, verifying that the steps or promised rewards are fulfilled transparently and effectively.
With blockchain technology, the processes of buying and selling real estate, titles, and cars can be more transparent and secure since the blockchain systems can be created that allow keeping a safe, auditable, and accessible public record of any act of counterfeiting or corruption.
Although there are currently various social networks on the market, the truth is that the most prominent social networks are owned by private companies with their own rules and policies, which often change over time, generating adverse effects for the user, such as a decrease in the scope of publications, high costs in its advertising system, prohibitions to publish specific topics, among others. With blockchain technology, you can create and manage decentralized social networks that are more transparent, inclusive, and auditable.
What do you think about this topic? Do you know of another application of blockchain technology that is not related to cryptocurrencies?
If you want more information on these topics, you can subscribe to our newsletter and receive a free report entitled blockchain technology applications and their relationship with decentralized systems.
Image by xresch via Pixabay.com under Creative Commons license.