These days you’d be hard-pressed to find someone who hasn’t heard about blockchain. The majority of people associate blockchain with cryptocurrencies. In reality, Bitcoin is among dozens of other uses a blockchain can have.
This new approach to online transactions is about to start changing the world in real time. In order to stay on top of the game, it’s important to know where the blockchain train is taking us. Let’s take a closer look.
1. Financial Services
When it comes to the modern financial transactions, it’s highly surprising why they can be still slow, error-prone, and bulky. Using blockchain for financial transactions is much more effective while being cheaper and more transparent than traditional options.
More and more financial services are taking advantage of the blockchain, for example, smart bonds. Smart contracts help bondholders automatically receive their coupons as soon as the contract terms are met. Meanwhile, the importance of blockchain accounting is hard to underestimate.
Other benefits include the following:
- Asset trade and management is simplified, especially for cross-border transactions.
- Insurance claims processing benefits from risk-free management and transparency.
- Cross-border payments are safe from numerous errors and money laundering.
2. Internet Of Things
You can call any object a “thing”. Once it gets a switch which connects it to the internet, it turns into an Internet of Things. Any object becomes something new once it’s connected to a computer network. Blockchain allows turning things into the Internet of Things by using smart technologies.
You can take advantage of these smart innovations when it comes to property. For example, your thermostat can adjust the temperature in your home to save energy, your oven’s timer can work according to the ideal recipe, or the coffee machine can produce a high-quality cup of coffee by adjusting the brewing time.
In the future, blockchain can help create smart cities, which may improve the way we live. Dubai is already planning a blockchain-powered future.
3. Smart Contracts
Smart contracts are digital contracts which allow payment (or any other reward as per the contract) only when the conditions are met. They take the third party out of the process. The blockchain technology does the controlling for you.
Blockchain doesn’t just eliminate the third party factor, it ensures all the participants know the contract details. Smart contracts can be used in a variety of situations, including:
- Government projects
- Music ownership rights
4. Identity Protection
Identity theft is something many people are afraid of. The reason why it’s sometimes very easy is the lack of protection. A variety of information is available online for the criminals to take and use.
Blockchain helps you create an information point, which stores your personal data and gives you an opportunity to choose who gets access to it. For example, if you are visiting a liquor store, the salesperson will only see that you are 21 rather than view your entire ID information.
Blockchain also opens new horizons for digital signatures. The security and transparency of the scheme allow using digital signatures for identity verification in digital transactions without being afraid of fraud.
5. Improved Cloud Storage
These days, you need to trust one cloud space provider with all of your information. In the future, blockchain data storage can offer decentralization. This can add additional security to the information stored in the cloud while decreasing the dependency on one provider.
At the moment, decentralized blockchain cloud storage isn’t available. However, it’s likely to appear in the next 3 years.
Adding transparency to charity donations is highly important. Blockchain can boost the donation size, help funds distribution, and attract more millennial donors. The new way of interaction with donors can speed up the donation process.