Blockchain technology is still gaining popularity across industries thanks to its diverse uses. It’s a system for recording transactions and tracking assets.
Each block contains information and links with other blocks to form a chain. The assets you can track using blockchains can be tangible or intangible.
The blocks when chained together form a large database.
This shared database allows users to maintain a record of various transactions. It’s so-named because no one can change the contents of blockchains.
Despite its many applications, users still find blockchain technology confusing. After all, it’s still finding its footing in sectors apart from cryptocurrency.
Here, we’ll look at 4 use cases for blockchain technology in a software development firm.
1. Supports Cryptocurrency Investment
The global cryptocurrency market currently has a value of over 1 trillion dollars. With such a massive investment at stake, its underlying technology has to be top-notch.
Not all cryptocurrencies use blockchain technology for their transactions. The most popular ones like Ethereum and Bitcoin do, though.
You can buy shares of cryptocurrencies (like Bitcoin) because they rely on blockchain technology.
This reliance is unlikely to go away anytime soon. So, a good crypto investment strategy could benefit you in the long run.
It’s important to first learn about investment before you dabble in crypto, though.
Conducting technical analysis of the financial markets will help you with the same. The results of your analysis should support your investment decisions.
Investors are making millions of dollars every year in the crypto market thanks to blockchain technology. There are thousands of different cryptocurrencies today.
You don’t need a middleman to handle transactions for cryptocurrencies powered by blockchain tech.
The elimination of a middleman can help you save money on your investments. Many investors find it convenient not to go through banks, etc. to invest their money.
The convenience of buying and selling cryptocurrency using blockchains brings in more investors every year.
Cryptocurrencies using blockchain don’t need to go through middlemen like banks for one simple reason.
The information needed to verify transactions is present in the blocks of a blockchain. So, two parties that don’t know each other don’t need a bank to conduct verification.
Instead, they can get down to businesses and trade the cryptocurrency on a blockchain network.
This process can help them save time on their crypto investments. So, it makes the crypto investment experience smoother.
2. Benefits the Financial Sector
Blockchain is seeing steady growth since it came into existence over a decade ago. Investors have an interest in this technology thanks to its applications across industries.
The financial sector benefits from blockchains for several reasons. Among these reasons is that blockchain technology makes transactions faster and easier.
Using blockchains can automate agreements in these sectors. Automation can make it more convenient for companies to track transactions.
Financial institutions can use blockchain training to improve record-keeping. It allows these institutions to store unaltered transactions.
So, it makes it easier for users to verify and trust these transaction records. Also, blockchain tech can speed up payment processes.
Processing payments faster will help financial companies save transaction time and cost. The best blockchains can handle transactions in seconds.
Saving time on transactions helps financial institutions and their clients save money too.
Also, financial businesses can process loans faster using blockchains. A faster processing time here will help these businesses provide more loans to customers.
It’ll also help them win more customers in the long run.
Another reason why blockchain is good for the finance and investment sector is that it increases security.
Using blockchains will make businesses in these sectors less vulnerable to cyber attacks. Customers will face a lower risk of financial fraud with businesses using blockchain tech.
The technology reduces the financial sector’s dependency on intermediaries. Instead, it offers banks a means to decentralize transactions.
Decentralizing transactions strengthens security and transparency around these transfers.
3. Stores Healthcare Records
Another impressive feature of blockchain tech is it allows users to store non-financial information.
These users can store PHRs (Personal Health Records) collected from hospitals, pharmacies, etc.
Patients can use blockchain technology to store these records for their reference.
Falsifying medical records isn’t the easiest thing to pull off for most patients. These are legal documents and patients must handle them with the utmost care.
But, some patients find a way to manipulate these records to their advantage. Such tampering carries serious legal consequences.
It could even land healthcare professionals in trouble if not handled the right way. So, it’s important to have a system that makes such tampering harder to achieve.
Blockchain tech can help here. Storing patient information on blockchains makes it secure and transparent.
It allows healthcare providers and legal authorities to view traceable data from patients. Storing information like this increases reliability in PHRs.
The same goes for EHRs (Electronic Health Records). Doctors manage these records and are more trustworthy than PHRs.
But, it’s not easy to transfer EHRs from one healthcare institution to another. This difficulty arises because healthcare institutions store EHRs in centralized systems.
Using blockchain technology could provide a viable solution here. Doctors can store EHRs on decentralized blockchains instead of their centralized systems.
Doing so will allow healthcare workers in other organizations to access these records. So, it would make the transfer of patient data easier.
The reliance of the healthcare sector on blockchain technology is another investment incentive.
This industry can offer you long-term returns if you learn to invest in blockchain tech.
4. Facilitates NFT Transfers
NFTs (Non-Fungible Tokens) are among the most exciting additions to the digital world. Users can transfer assets between them without an intermediary thanks to blockchain tech.
NFT trading rose by over 20000% in one year, so investing in it could be a wise decision.
You can exchange units of value using blockchains. Among these units of value are NFTs. NFTs are tokens representing unique values.
You can’t exchange one NFT for another, which is why they’re useful for buying digital art pieces. Buying these tokens can give you ownership rights over digital assets.
These assets can also include property deeds, etc.
The advantage of using NFTs is that no one can interfere with these transactions. It’s easier to tamper with other online transactions compared to NFTs.
Blockchains provide a secure means to trade NFTs over the internet. Buying and selling of these tokens take place between buyers and sellers.
No intermediaries take part in these transactions. These transactions are possible thanks to the reliability of blockchain technology.
Companies across different sectors are recognizing the importance of using blockchain technology.
Its versatility and ease of use allow companies to use it as a digital ledger. It also allows users to access a trading platform for digital assets.
This technology may be here to stay with its expanding hold on several industries. The fact that it acts as a foundation for information storage makes it so appealing.