There is no doubt that the blockchain technology is a revolutionary system of maintaining records. The first global, decentralized, trustless ledger of financial records is Bitcoin. After the invention of Bitcoin, entrepreneurs all over the world are still grasping the diversity of the applications of this technology. The technology can be applied to storing and recording of any kind of financial data or transaction records.
Here are how the applications of this technology have changed over the last year-
- Digital Identity
Blockchain network provides an opportunity to create a well-built and secure system for digital identity. The person who owns the private key actually owns the digital asset. This helps to establish an identity by avoiding the sharing of personal information.
- Tokenization
Tokenization is a way by which a particular physical item is authenticated by pairing the items with a correlating digital token. Tokens are used to bind the digital world with the physical world. Tokenization readily helps in fraud detection, anti-counterfeiting, intellectual property and supply chain management.
- For governments
Governments mainly have interest in 3 constituents of the blockchain network. These are:
- Right of ownership
- Creation, and revocation
- Cryptographic key possessions
Governments also have an interest in different protocols of blockchain as they help to authorize transactions.
- For Audit Trails
Large institutions like banks use client-server infrastructure, over the internet, in order to form digital relationships. This is done to safeguard information against hackers. The technology of blockchain helps a way by which a record is created automatically on people who have accessed any record.
- For Smart Contracting
Smart contracts define all the provisions and penalties of an agreement. This helps different parties to remain anonymous while they enter into a binding with one another.
- For Automated Governance
Bitcoin is itself an example of DAO (Decentralized Autonomous Organisation).
- For Markets
Blockchain can be considered as a digital bearer bond. This means that creating a unique digital key can show proper owner rights. This kind of token signifies that code of ownership can characterize any physical item, a stock or any other property.
- For Mtreamlining of Settlement and Clearing
‘T+3’ is a common term in the world of the stock market where ‘T’ stands for trade and 3 is the particular number of days before the stock actually gets settled. With the introduction of the blockchain technology, the stock can be settled in ‘T+0’ time.
For example, HashCash HC Remit product allows remittance transactions to settle in real-time using HC NET Blockchain platform. Ripple is also using Ripple net to settle remittance transactions in T+0.
Blockchain use cases are finding wide applications wherever transparency, security and auditability are of paramount importance.
