The blockchain is believed to be a game-changing technology that can disrupt the conventional business models and other networking technologies. The reality is that it is a foundational technology that can help develop new ways to share transactional information both within as well as outside international companies. Organizations are aiming to find ways to use this technology to conserve time and money as well as to restructure business procedures.
Let us continue to explore some rather thought-provoking utilities of blockchain that spans across many different sectors.
Currency Exchange and International Remittances:
Challenges like high cost of transfer, insufficient capital distribution methods, increased the need for capital, risks associated with transactions and limited brand options are becoming very troubling for the financial services sector. Blockchain can be utilized to solve these problems with international remittances. In the process, it will also increase transparency of prices as well as the improved security of transfers. Many banks and similar organizations are opening themselves to virtual currencies like Bitcoin or remittance platforms like Ripple to improve their remittance services.
In some law and accounting companies, the requirement to possess records of conversations and documents shared among various entities, that have not been tampered with, is crucial. An efficient method of ensuring the security of information is to store documents that are either encrypted or decrypted on a blockchain database. Apart from being sure of the immutability of information, people can also know who added this data to the blockchain. This can help establish businesses with an audit trail that cannot be tampered with.
The creation of smart contracts is one of the chief utilities of blockchain. A smart contract eliminates the need for middlemen and enables transactions in a smooth and challenging freeway. These self-automated computer programs run on blockchain networks as they are intended to based on how they are programmed without any meddling by a third party. It is free of fraudulent activity, censorship, and downtime. For example, when a company agrees on a smart contract with a supplier, the supplier instantly gets the payment after the Internet of Things sensors acknowledges the receipt of goods from the supplier at the warehouse.
The status quo with respect to compliance regulations that have been put into practice globally needs effective structuring and capturing of risk information. It is a challenge to keep up with the constantly changing regulatory environment which is complicated further by aggregating information, old information technology systems and data overdose caused by legal and regulatory barriers. Blockchain can solve all the problems faced by companies and can help them keep us with the present day’s constantly changing regulatory landscape. Blockchain eliminates the need to collect, store, settle and aggregate data for regulators since all transactions that take place on the blockchain are documented safely and immutably on the ledger. This enables an accurate, immutable and safe audit trail.
Internet of Things:
The convergence of blockchain and internet of things gives rise to many intriguing utilities like that of the supply chain. For example, the movement of perishable food items like might from the farm all the way to the shelf of the retail store is regulated by specific conditions like maintaining the right temperature due transport. By developing individual containers for the mild with an IoT-enabled temperature sensor, information related to the temperature of milk at various points of transit is collected. This information is transferred to the blockchain where it is stored. It can be looked at by all the participants of this transaction from start to finish. As the IoT sensors collect precise data about the way the milk is managed during transit and automatically sends this to the blockchain, the data cannot be tampered with and cannot be incorrect. The data received is on time and precise. Using smart contracts here assists in the management of the SLAs.
Smart and Collaborative Transportation:
This includes the effective use of existing resources and infrastructure instead of creating new ones. This includes carpooling, that is, getting people with cars to accommodate people traveling in the same direction. As it is a decentralized network, blockchain eliminates the need for middlemen and directly connects users with one another.
Eradicating Cyber Attacks:
Blockchain provides many safety advantages over traditional information warehouses as a result of their distributed nature. As blockchain networks do not have a single point of access, the danger presented by hacking is almost completely eliminated.