Have you heard about Bitcoins and cryptocurrency lately? You probably have, thanks to all the buzz surrounding Bitcoin's record-breaking exploits.
The idea that Bitcoins were just worth $1 apiece in 2011 seems almost unbelievable. A single Bitcoin was recently valued at an astounding $16,000. You might not be interested in investing in Bitcoins or any other cryptocurrency as a business.
This article will examine eight notable applications of blockchain technology in finance to demonstrate how this innovation is changing the financial scene in ways that go beyond cryptocurrencies.
Top 8 Non-Crypto Use Cases For Blockchain
Non-fungible tokens, or NFTs for short, are a specific type of digital or virtual assets, each of which has been verified as an individual, non-transferable entity. According to Rafferty, NFTs are ushering in a revolutionary transformation in the realm of digital art and collectibles.
Like cryptocurrencies, NFTs have had several difficulties with regard to their perceived and actual worth, nevertheless.
In light of these developments, partnering with a blockchain development company and considering the option to hire blockchain developers may be vital for navigating the evolving landscape of NFTs and blockchain technology.
2. Energy Supply
In the realm of energy consumption, there are two distinct types of businesses: those who simply accept their monthly utility bills without question, and those who find themselves perplexed by the origins of their energy expenses.
In select regions across the world, both commercial establishments and households now have the opportunity to leverage blockchain-driven "transactive grids" to access sustainable energy solutions that offer precise monitoring of energy usage.
Prominent illustrations include Powerpeers in the Netherlands and Exergy in Brooklyn. Furthermore, blockchain technology can enhance the monitoring and verification of clean energy sources.
This is particularly significant since once electricity is fed into the grid, distinguishing whether it originates from fossil fuels, solar power, or wind energy becomes a complex challenge.
The application of blockchain technology in the context of voting hinges on a fundamental concept: trust. Currently, efforts are underway to explore the potential of blockchains in government elections.
A noteworthy example of this is the Moscow government's initiative to assess the effectiveness of blockchain in local elections. This move holds the promise of significantly reducing the risk of electoral fraud, a pervasive concern even with the prevalence of electronic voting systems.
Another instance showcasing the transformative power of blockchain in voting is NASDAQ's adoption of the technology to streamline shareholder voting processes.
This achievement was realized through a collaborative effort between NASDAQ and their blockchain technology partner, along with local digital identification solutions providers who issued government identity cards. Having experienced success in this endeavor, they hailed the "e-voting" project as a practical, essential, and disruptive advancement in the field of voting and governance.
Also Read, Blockchain: A Technology Beyond Bitcoin
In the realm of banking, Chen Zur, who leads EY's blockchain practice, anticipates that blockchain will increasingly find its place among business-to-business enterprise clients.
These clients, involved in multiparty cash flow distributions governed by contracts, are poised to leverage blockchain technology for the automation of contract-related calculations and processing.
While blockchain is still regarded as an evolving technology, Kapur emphasizes that it has already made significant inroads into practical banking applications.
These encompass an array of essential functions, such as contract management, real-time transparency, calculation and reporting automation, inventory management, procurement, funds traceability, lending and borrowing processes, digitizing assets, handling cryptocurrencies, facilitating reconciliation and settlements for securities and commodity trades, as well as maintaining secure and immutable land registries.
5. Quality Assurance
In the event of identifying any irregularity within the supply chain, a blockchain system possesses the capability to trace the anomaly back to its exact point of origin. This streamlined traceability empowers businesses to conduct thorough investigations and take prompt corrective actions.
A concrete application of this capability can be seen in the food sector, where the ability to track vital information such as origin, batch details, and other critical data is indispensable for ensuring quality assurance and safety standards are met.
6. Media and Entertainment
The media and entertainment sector serves as a fertile ground for the application of blockchain technology, where the possibilities are as creative as the industry's own offerings.
An exemplary illustration of a successful use case is the collaboration between EY and Microsoft, resulting in a blockchain-based product designed for managing gaming rights and royalties.
This innovative solution establishes a robust financial system of record, encompassing the entire journey from contract creation to payment reconciliation. Microsoft's vision extends to harnessing expanded blockchain functionalities to empower its network of Xbox gaming partners, as well as artists, musicians, writers, and other content creators, by enhancing their ability to gain greater visibility and control over tracking, management, and the payment processing associated with royalty contracts.
7. Smart Contracts
Prolonged and intricate contractual transactions can pose significant obstacles to business growth, particularly for enterprises dealing with a continuous influx of communications.
Smart contracts, enabled by blockchain technology, streamline this process by automating validation, signing, and enforcement. This transformative approach eliminates the necessity for intermediaries, resulting in both time and cost savings for the company.
In the present landscape, blockchain solutions such as CREDITS provide autonomous smart contracts, coupled with their proprietary cryptocurrency. This comprehensive platform empowers businesses to seamlessly integrate services while safeguarding a substantial amount of sensitive information.
This is made possible without the need to divulge excessive proprietary details to third parties, a testament to the capabilities of blockchain developers and blockchain development companies in simplifying complex business operations.
8. Supply Chain Management
In the realm of supply chain management, blockchain technology brings forth the advantages of enhanced traceability and cost-efficiency. To put it succinctly, blockchain serves as a valuable tool for monitoring the journey of goods, encompassing their source, quantity, and related details.
This injects a heightened level of transparency into B2B ecosystems, streamlining crucial processes like the transfer of ownership, ensuring the integrity of the production process, and facilitating secure and efficient payment transactions.
Blockchain technology has transcended its origins in cryptocurrency to become a transformative force within the financial industry. These eight well-known application cases demonstrate how it may spur efficiency and creativity in a variety of fields, from voting and supply chain management to quality control and smart contracts.
We may anticipate that blockchain technology will become more and more important in changing the financial landscape as companies and financial institutions continue to investigate its potential. Blockchain offers new degrees of security, transparency, and trust.