When people hear the term blockchain technology, they often think of cryptocurrencies. Yes, cryptocurrencies are major advantages of blockchain technology but there are several other advantages and applications of blockchain technology apart from being the foundation of cryptocurrencies.
Every industry has begun to adopt blockchain technology
because of its important benefits. In fact, blockchain companies are always smiling to the bank because their services are now highly sought after. The recent upsurge in the number of blockchain companies is enough to confirm this high demand.
Its decentralized nature is the biggest reason blockchain companies are being hired in several industries. Due to its decentralized network, it is difficult for hackers to attack it. Every node on the network contains the same data as the others. Secondly, when any node breaks down, it will not affect the network.
Most importantly, no one can tamper with or manipulate the network. Whatever is done on a node must be replicated in the other nodes before it becomes active. This is why it is being developed for different blockchain companies.
The system checks and updates itself every 10 minutes. So, it is always up-to-date. This makes it less prone to fraud. Fraud cannot be carried out on any system built on blockchain. Due to these important benefits of blockchain, it is now being adopted in several industries. Here are some notable applications of the technology.
In Supply Chain Management
Blockchain is now being applied to supply chain management
and its major advantage to supply chain management is ease of tracking. With blockchain, you can easily track the movement of your goods to the point of consumption.
If you find anything wrong with any material, you can easily find the origin of the material. At any given time, you can easily find out the quantity of good, origin and their locations. This helps with quality assurance. The origin and cause of any irregularity along any supply chain can be detected easily.
For instance, in a food processing system like the production of tin tomatoes, several materials are taken from different sources. If at the end, something is found to be wrong with a certain batch of the product and the problem was caused by one of the materials used for it, blockchain technology makes it easy to figure out the exact ingredient that caused the problem. So, blockchain makes quality assurance very easy. These are the reasons the technology has been embraced in the supply chain management industry.
Using blockchain to record transactions minimizes the occurrence of human error and this leads to higher accuracy. In addition, the technology protects sensitive data from illegal or fraudulent manipulations. Remember, records are checked, verified, and updated every 10 minutes. Records are also verified when they are being passed from one node to another on the system. Traceability is a good one here. Every process leaves traceable audit trail.
In Stock Exchange
No industry needs the distributed ledger technology more than stock exchange. So, it is not a surprise that the stock exchange regulatory bodies in several countries are already working towards making a paradigm shift to blockchain technology. In fact, Australia’s stock exchange is dead set for the switch.
In Supply of Energy
This is necessary because energy consumers often believe that they have been overbilled while energy suppliers believe otherwise. Since blockchain offers a high level of transparency, it is the best solution for energy supply.
In Global Payment
Although there are several global payment service providers
like PayPal, Skrill, Perfectmoney, Payza, and Western Union, they all charge sizeable fees. They charge between 2 and 5 percent commission for money transfer and payment for transaction. Two percent may seem to be a small amount if you are sending a small amount of money but imagine parting with $2,000 when you are sending $100,000.
Secondly, they also have different restrictions for different locations. For instance, PayPal accounts in several African countries cannot receive money from other PayPal accounts. This policy is meant for mitigating the alarming spate of money laundering. A China-based PayPal account cannot transfer funds to another China-based PayPal account. Apart from location restrictions, there are restrictions on the maximum amount of money that you can transfer within a certain period. Blockchain does not have all that. You can transfer any amount of Bitcoin, Ethereum, or other cryptocurrencies anytime and anywhere.
For Financial Transactions
The major application of the technology is in cryptocurrency
. One of the most popular and most valuable cryptocurrencies is Bitcoin and it is because of the advantages that have been outlined below.
1. Mobile Payment
There is a Bitcoin wallet app that makes it easy for you to send payment and receive payment into your Bitcoin account in just two to three steps. To receive any Bitcoin payment, you only need to display the QR code and the sender will scan your smartphone or mobile device.
It does not require any need to sign up, enter a PIN, or to swipe your card. As long as you have your phone, you can either send a payment or receive a payment.
As long as you have taken the necessary steps to secure your money, all your transactions are secure and your Bitcoin account will be safe. Nobody can defraud you through any form of identity theft. In fact, security is the biggest reason most people are shifting to Bitcoin.
3. No Restrictions
Use of Bitcoin does not have any restriction. You can use it anytime and anywhere as long as you have internet connection. It is always up 24/7. You can even make things easier by adding the app to your favorites and you will be able to send Bitcoin with just one click.
4. Sending Fast and Cheap International Payments
With Bitcoin, you don’t have to wait for 3 business days before the recipient gets the money like banks do. It does not also attract additional fees. Sending a Bitcoin payment from the United States to India is just like sending it to the guy on the next floor. In addition, there is no limitation on the maximum or minimum amount you can send. Back