The blockchain which became popular because of Bitcoin has now seen an exciting technology that can revolutionize business activities. Blockchain has the potential to offer a new alternative to traditional currency, centralized banking, and transaction methods.
Blockchain, the technology behind Bitcoin, has become one of the most widely discussed buzzwords. Blockchain refers to a distributed ledger that maintains a list of every transaction across a network distributed over tens of thousands of computers. Every transaction on the blockchain is visible to everyone and this feature makes it almost impossible to hack or tamper blockchain. Due to the benefits offered by blockchain, it is increasingly being used across multiple industries. Blockchain holds the potential to change the way most businesses operate.
The blockchain technology has the ability to provide excellent security, high speed, and efficiency to any business network. It can prevent theft, simplify day-to-day activities, speed up processes, eliminate errors, and helps in avoiding a third-party intervention.
The decentralized blockchain system can transform banks and other financial institutions, as well as hospitals, companies, and governments among others. Now if you’re excited about this innovative technology, you might want to know some of its best applications. Read further to know the top applications of blockchain.
- Payments and Money Transfers
Blockchain’s most well-known applications are in the financial sector. With the help of blockchain, it has become quick and easy to send and receive payments. Blockchain applications in financial sector range from back-end clearing and settlement, to global capital markets architecture. Financial institutions, as well as businesses, are using this technology to transfer funds directly and securely to anyone around the globe. The transactions over a blockchain can be performed almost instantly and at extremely low fees. As you know, the cross-border payments are prone to errors and frauds. Global payments are also expensive because of the intermediaries involved that charge huge transaction fees. But now with the help of blockchain, international payments can be made quickly because there is no third-party.
- Smart Contracts
For the first time, the term ‘smart contract’ was used in 1993, but thanks to the launch of the Ethereum Project, it gained popularity in 2013. “Smart contracts” can be defined as self-automated computer programs that can perform the terms of any contract. The smart contracts are unbreakable and can help in lowering the costs of financial transactions. The Ethereum Project launched in 2013 is a decentralized platform that is programmed to minimize downtime, censorship, fraud or third-party interference.
Smart contracts are programmed with an if-this-then-that (IFTTT) code, which makes self-execution possible. Due to this feature, it becomes possible to eliminate the need for third parties. Blockchain helps in ensuring that all ledger participants know the contract details and maintains transparency.
- Cloud Storage
Another great application of blockchain is cloud storage which is helping businesses. Storj Company is expected to soon launch a secure cloud storage platform that will reduce dependency. Shawn Wilkinson, Storj founder stated, “Simply using excess hard drive space, users could store the traditional cloud 300 times over,” similar to renting out your home or room on Airbnb.