Blockchain technology is changing finance but it is not only related to cryptocurrencies, it is also being used in many industries. In this first blog post of a series in which we will cover how this technology is used in industries and sectors that are not necessarily related to cryptocurrencies such as bitcoin.
The blockchain is modifying our daily lives, from business transactions, asset management, voting, renting cars to even our personal IDs. It is being implemented to transform a lot of industries such as banks, healthcare systems, governments, and private companies.
We are going to tell you a bit of what Blockchain can do and that you may not have heard about yet. These are some areas where blockchain can be used and that are at the forefront of some industries.
Asset Management: Trade Processing and Settlement
In traditional trade, sometimes parties exchange and manage assets at high costs and risks, especially regarding cross-border transactions. In this kind of transaction, each party keeps its own records, creating room for error and inefficiencies. Blockchain ledger can assist management processes in reducing errors by encrypting records, simplifying the process and avoiding intermediaries.
Insurance: Claims processing
Insurance claims may be prone to fraud, abandoned policies, fragmented data sources and even errors given that processors manually fill the forms. The employment of blockchain can improve the system and transparency and offer risk-free management, as blockchain is used to store data.
Payments: Cross-Border Payments
Global cross-border payments are open to money laundering, are expensive, slow and subject to errors. Here, blockchain is currently being implemented by remittance companies such as Abra, Align Commerce, and Bitspark. Even banks started to allow customers to make fast 24-hour clearing international payments with blockchain-based technologies.
Blockchain in Smart Property Applications
Borrowers with poor credit may require money to unconventional money lenders. These lenders use to ask for high interest and claim the borrower’s property as a warranty, so if they fall into bankruptcy they lose their properties. With blockchain, lenders can give loans to strangers taking smart properties as collateral, no matter their credit history.
Blockchain Internet-of-Things (IoT)
Any object that can be connected to the internet and with other objects with the same characteristic belongs to the Internet of Things. This capacity, makes this kind of objects more than objects because devices continuously share critical data all over the internet raising concerns about privacy and security. Blockchain is useful to secure data, as a distributed ledger allows the safe transfer of information between parties.
These are just five of the many ways blockchain is being implemented in different industries. Stay tuned for the second part of the series where will talk about other uses of blockchain technology.