Concerned about the future growth of your business? Want to secure your organization’s data so it cannot be manipulated by any other?
Looking for a technology that can revolutionize your business? If yes, then strategize for blockchain application. Want to know why?
Well, more than forty of the world’s biggest financial institutions have joined hands together to do the investigation of the blockchain for more secure and faster transactions. And it’s being adopted by a large number of companies working in different niches.
Through this article, I will not only give you a simple recap on the blockchain basics but also introduce to you some examples of blockchain application.
So, let’s first get to know in brief what Blockchain Technology and then how its application will help grow your business and its data.
What is Blockchain?
So far, you must have read/heard a lot about what blockchain is. Still, I like to tell you that Blockchain technology enables you to do secure transactions anonymously.
This is the very same technology that helps in driving bitcoin and other digital currencies.
What does Blockchain do?
Well, in brief, blockchain helps in generating a true peer-to-peer secure transaction.
This way, it can be said that blockchain allows for two main types of jobs:
1. Securing your data (trust)
2. Recording virtually everything of value (history)
Now the question arises how it makes possible the above mentioned two main jobs.
Well, to make you understand all about this, I will take an example of the finance industry.
But before I get started, let me tell you that blockchain isn’t just confined to a small circle of tech specialists as it was considered to be earlier, but it also works great for many industries, such as Finance, Healthcare, Real Estate, Tourism, Technology, Retail, F&B, Education, Digital Content, Human Resource, Marketplace, Identity, Mathematics, Transport, Entertainment, Media, Rights Protection, Government Agencies, Charity, Business, Legal and more.
1. Crowdfund any project without the fear of the loss and misuse of your money
Today crowdfunding is surrounded by accountability problems. Simply because either the crowdfunded-project-handling-organization can delay the delivery or fail to deliver the promised products or services. This fear of financial loss and misuse of the funded money causes the prevention of any further investment in any new project.
However, with the use of blockchain technology, not only can you know who you are sending money to but also how the creators are spending the crowdfunded money.
That apart, creators are provided with more backup for their projects with minimal fees and total costs, without having to worry about the elevated fees from the lawyers.
It is simply like purchasing a house, and you do not need to give all the money upfront.
You can hold a certain amount of money in escrow. The benefit is that a certain part of funds will be released only when your house is built by the estate developer.
Similarly, a smart contract can’t release or dispense the crowdfunding money until the creator makes progress on the project. So, you need not worry as your money is secure.
So you have trust.
2. You can transfer money internationally without any hassles at a lower fee
When it comes to transferring a small amount of money internationally, most of us use international transfer services such as PayPal, Western Union, and more. However, their higher services fee of 10% gobbles up most of our hard-earned money.
Blockchain application in the banking sector today has changed the way money is sent around the world. Not only does it make it possible at a lower fee, but fuss-free.
Bitcoin is one such digital currency that you can now transfer via blockchain technology.
Companies like Ripple are now taking advantage of this advanced & avant-garde financial technology to send money to their customers around the world.
3. Facilitates fast lending and borrowing money
When you show your interest to take a personal or business loan from any bank, you have to go through a long and hectic documentation process along with a high-interest rate.
However, with the application of blockchain in the banking sector, we need not go through this time-taking and tedious process. The technology has not only simplified the entire process of borrowing and lending but also fully hassle-free.
As a lender, not only do you remain completely anonymous but also need not register anywhere.
All you need to do is just opt for your choice of loan from the market, initiate from your wallets.
Best of all, as a borrower, you can repay the loaned amount in a low-interest environment.
Lendoit, which is 100% decentralized and has disrupted the traditional lending industry.
4. Make foreign exchange post-trade processing efficient
Foreign exchange is one of the most liquid assets and largest classes in the world.
Not only is this sector complex to capture and reconcile but also to settle trading activity.
Axoni’s platform allows for completely synchronized integration with third-party market data providers. This way, it is helping to improve efficiency in the overall market.
5. Stock market on blockchain
What if you are allowed to register, issue, and trade shares on a blockchain-enabled platform.
Of course, it sounds great, and you can now make it possible using any digital currencies.
In simple words, you can now purchase any company’s share through digital currency.
The London Stock Exchange has already tested it out by issuing digital private shares of SMEs in Italy.
That apart, an online retailer, named Overstock has also done the same when it began to issue company’s shares through bitcoin blockchain technology applications.
6. helps in increasing high uptime for the central bank
Blockchain technology provides both – resiliency and transparency. As you know, the cashless system is increasing. Whenever people buy something, they either make use of their credit cards, Apple Pay, Google Pay, PayTM, or QR code payment.
But what if the system is offline and not working for long. The chaos is created and leaves you restless.
However, if you use digital currencies like Bitcoin and others, you don’t face such a situation, because it hasn’t suffered even a nanoseconds downtime so far.
So, considering the resiliency and transparency of blockchain technology, a large number of central banks around the world are relying on it for a gamut of usage.
7. Helps in reducing insurance fraud
The insurance sector is prone to plenty of fraud schemes. But this can be reduced if the insurance companies record medical procedures and time stamps via the blockchain platform. This helps in complying and verifying the rendered medical services
8. Transfer digital wills
Let me tell you that cryptocurrencies have now become essential assets to secure the future.
A lot of people are now storing them as future funds. But have you ever thought about what will happen to your digital currencies if you leave them without making a Will?
How can you stop their losses and let them be transferred to your near and dear ones?
Well, Mywish lets you create smart contracts to take care of your funds in the event of a crisis.
Using it, you can transfer your savings to your closed ones during death or severe illness.
9. Predict the stock markets
Current prediction markets are centralized. As a result, all of the centralized platforms have to face a single form of failure. Moreover, they can be easily shut down.
For this type of centralized design, you need a trusted person who can honestly report every time.
But what if this individual turns dishonest, manipulates results, and commits mistakes?
Of course, you need such technology, which is trustworthy, transparent, and resilient.
And that’s none other than the blockchain technology that not only functions without any third-party intervention but also provides complete transparency and resiliency.
After reading the article about the 9 use cases of blockchain application in finance, we hope that you would like to know which company can help you with blockchain application.
If you have any questions about blockchain and its application in your business or need some experts’ advice, we would be happy to answer them in the comment section below.