5 Interesting Blockchain Use Cases You Should Know
Bitcoin was created to be a new global monetary system, but blockchain, the underlying technology for cryptocurrencies, has expanded across multiple industries. In this article, we highlight five blockchain use cases that are increasingly being popular around the world.
Blockchain: From Payments to Multi-Industry Revolution
To illustrate how blockchain evolved into a technology that applies to multiple industries, we have to trace its history and point out when and where it evolved to unlock the many use cases that have been developed.
When Bitcoin was created in 2009, it was proposed as a new monetary system run by thousands of computers distributed around the world, making money less dependent on central authorities. This network of computers handles a special type of database called blockchain, which uses distributed ledger technology to add data in a permanent manner, allowing for a verified record of transactions protected by cryptography and consensus among the computers that operate it, among other technologies.
The main function of the Bitcoin blockchain is to facilitate the transfer of Bitcoin and the record of that transaction in a way that can’t be modified or deleted in retrospect. Since the creation of the Bitcoin blockchain, several developers have adopted the technology to add more functions and use cases. When the Ethereum blockchain was created in 2015, it introduced smart contracts, which allowed people to program contractual agreements that go beyond payments. At this point, more use cases for blockchain development were unlocked, with possibilities that expand depending on how an individual or organization intends to use it.
Nowadays, blockchain technology solves problems that plague stakeholders in a number of industries, ranging from finance to agriculture. There are thousands of blockchain platforms around the world right now, ranging from truly decentralized operations such as Bitcoin to private, corporate iterations that are under the control of one company for specific purposes.
The most prevalent use case of blockchain is in finance. What started as a distributed method to permanently record transactions has since evolved into a myriad of crypto-financial services ranging from simple one-tap purchases using cryptocurrency and trading to more complicated functions such as decentralized finance (DeFi) for loans, savings, liquidity pools, and more.
From a finance perspective then, cryptocurrencies are created to give more freedom to people regarding how to earn and use their money. Therefore, blockchain enables the creation of more avenues to provide financial services to more people around the world, especially those with little to no access to the traditional systems. But as crypto gains popularity over the past decade, more use cases have been unlocked.
Five Blockchain Use Cases to Watch
There are thousands of blockchain use cases being conjured, some more popular than others. At the moment, here are five of those use cases that have gained popularity around the world.
Just as soon as crypto became popular for payments and finance, developers have created blockchain games to introduce the many solutions that the technology can bring to gaming problems such as economic manipulation by gaming companies, payment woes, possible shutdowns, and imbalance gameplay. By implementing an open-source, distributed, and transparent network for players to participate in, blockchain introduces innovations such as real ownership of assets, consensus-driven updates, decentralized marketplaces, streamlined tokens, and more.
One of the earliest popular examples of blockchain in action is CryptoKitties, a game where people can collect and breed digital cats, with transactions being handled on the Ethereum blockchain. At one point, CryptoKitties generated so much hype that it dominated network traffic on Ethereum. Since that fad died down, developers have created newer, more sophisticated blockchain games such as Alien Worlds, Axie Infinity, Cartesi, The Sandbox, and more.
2. Real Estate
Blockchain brings better service in the real estate industry, which faces problems such as slow transactions, administrative disputes, and distrust between buyers, sellers, and intermediaries. Implementing blockchain real estate systems allow for automation of routine tasks and contracts, transparent listing and data tracking, and reduced costs.
Beyond better service, blockchain unlocks innovative business models for real estate, such as fractional ownership of otherwise hard-to-share assets, digitized contracts for faster transactions, real estate crowdfunding through tokenization, and more.
The insurance industry is rife with inefficiencies and vulnerable to fraud. As a records-intensive industry, insurance benefits from blockchain, with use cases such as better fraud detection, recordkeeping, and reinsurance (insurance for insurers). Blockchain also unlocks innovations in insurance business models by making it possible for insurers to offer more sophisticated versions of on-demand insurance and microinsurance products.
The potential of blockchain insurance innovations to solve problems is so high that about 80% of insurance executives have either already adopted or planning to pilot blockchain technology across their business units.
While security is a wide-encompassing topic, ranging from individual accounts to entire nations, blockchain has a solution for problems on each level. On the individual level, blockchain security solutions include self-sovereign identity, where individual users can fully control their personal information, as well as protected data transmission, secure private messaging, and security layers for Internet-of-Things household devices such as thermostats and routers.
In the organizational level, companies have implemented blockchain for distributed record-keeping, preventing denial-of-service attacks on single points of vulnerability such as websites. Even the governments of countries such as Australia, Malta, and China are using blockchain for security purposes.
NFTs, or non-fungible tokens, have become a hot topic in the art world, as works of art created using the technology have started being sold for millions of dollars at auctions. The development of NFTs has brought us crypto art and digital collectibles, with artists, musicians, and influencers increasingly using the technology to benefit more from their authentic, unique work. The use of NFTs can extend from digital art and music to proof of authentication documents for real-world assets such as artworks and jewelry.
You can gain access to some of the best NFTs in the market via the Binance NFT Marketplace, where you can explore and buy digital artworks and collectibles from the comfort of your Binance account. Powered by the Binance blockchain infrastructure and community, the Binance NFT Marketplace provides the highest liquidity platform for users to launch and trade NFTs.
For more use cases that are making waves around the world, check Binance Academy, where you can find numerous articles discussing blockchain use cases, such as healthcare, governance, supply chain, IoT, and charity.
The Global Giants That Use Blockchain
Blockchain is here to stay, as more companies and institutions find new use cases for the technology. Here is a list of how some of the biggest companies and brands in the world use blockchain.
1. J.P. Morgan developed an enterprise-focused version of Ethereum called Quorum to process private transactions using smart contracts.
2. IBM provides business-level blockchain platforms to multiple industries such as automotive, banking, healthcare, retail, and more.
3. Walmart worked with IBM to digitize its food supply chain process, adding transparency to its food ecosystem and ensure the safety of its merchandise.
4. Alibaba incorporated blockchain into the product traceability system of its cross-border e-commerce unit Kaola to track order movement.
5. Gucci designed augmented reality sneakers as digital collectibles and is one of the leading luxury brands, alongside Louis Vuitton and Prada, that use blockchain to protect their products against counterfeiting.
But you don’t need to be a big corporation to benefit from blockchain. On a personal level, you can benefit from the technology to increase your wealth and make life easier for you, through crypto trading and financial services provided by Binance, where you can use crypto and blockchain from the comfort of your phone.
Read the following articles to learn more about the crypto adoptions: