The term Blockchain refers to the method of storing cryptographic information that is near impossible for the system to hack, manipulate, erase, edit or change. It is a kind of a distributed ledger that enables in duplicating and distributing transactions across a wide area network of computers that participate in a blockchain.
It stores transactional records in the form of blocks in several databases referred to as a ‘chain’ in a contested network, with the help of peer-to-peer nodes.
This storage mechanism is typically known as a ‘digital ledger’. Each and every transaction in this particular ledger is verified and authorized by the digital signature of the owner. This is how a cryptocurrency transaction is authenticated, safeguarding it from hacking and frauds.
1. Cross-Border Payments
Traditional methods of making trans-border payments can be complicated and time-consuming. But with blockchain, it has simplified the process of cross-border payments to a great extent, and with companies like “UniPayment”, end-to-end remittances without any intermediaries is now possible for all merchants, cryptocurrency traders, brokers, and individuals. In fact, one such company offers blockchain services that help in international remittances within 24 hours or less.
2. Money Transfers
Using blockchain as a technology, money transfers or wire transfers can be comparatively less expensive, foolproof, secure, and quicker than all other existing forms of traditional money transfer services, be it Western Union, PayPal, etc. This is a kind of payment revolution that is taking the world by storm, especially benefiting those who are into cryptocurrency trading. With blockchain, money transfers happen in minutes, unlike the traditional system, which takes days.
3. Cryptocurrency Trading
This is undoubtedly the most popular application of blockchain. The one major advantage of cryptocurrency using blockchain is that it has no geographical limitations and boundaries whatsoever. The use of crypto coins for transactions is prevalent all over the world. In one word, this is a perfect example of the blockchain payment revolution, which surpasses and bypasses regional payment Apps that have certain geographic limitations, just like Paytm in India. It has truly revolutionized the concept of international payment and cross-border money transfers.
4. Lending Mechanisms
Today, lenders can use blockchain for providing a variety of loans against collaterals, via smart contracts. Such smart contracts that are built around blockchain technology help in the automatic triggering of activities like repayment of loans, release of collateral, service payment, etc. This is how faster, cheaper, and efficient loan processing can be expected, with lenders offering comparatively better rates.
5. Healthcare Sector
Blockchain is showing a massive impact on the healthcare industry by using smart contracts. It clearly means that a contract is drafted between two parties, without the need for any intermediaries. All the parties are aware of the contract details, and it is automatically implemented once the conditions of the contract are fully met. It is quite effectively used in the healthcare sector, where a patient’s health records can be encrypted via blockchain, which means only the healthcare service provider is able to access the records with the help of a key. It also ensures the confidentiality of patient information, which cannot be accessed by anyone.
6. Birth & Death Certificates
A considerable number of people around the world do NOT possess legitimate birth certificates, especially in underdeveloped countries. The same goes for death certificates, which an international body like UNICEF has confirmed in its report. This is where blockchain can help solve the problem by creating secure storage for birth & death certificates that can only be verified, authenticated, and accessed by concerned government/federal authorities.
7. Insurance Sector
It is by using smart contracts on a blockchain network that insurance companies can provide a higher level of transparency to their customers. When all claims made by customers are recorded safely on a blockchain, it is near impossible to duplicate claims for the same event, thus preventing fraud, forgery, and malpractices. Moreover, with smart contracts, the process of claim settlement is faster than usual.
8. Real Estate industry
All real estate transactions require humongous paperwork for the purpose of verifying land records, owner information, transfer deeds, and ownership titles to new buyers. Now with the advent of blockchain, the realty sector in the US and all over the world can record transactions in a more secure, safe, and accessible manner, apart from verifying information and transferring ownership of property. This helps in reduced paperwork, faster transactions, and less cost.
9. Online Identity Verification
It is not possible to perform any virtual or digital transactions without proper customer identification and verification. This is the case with all online banking and financial service providers across the globe. With blockchain, the customer identity verification process can be centralized, thereby ensuring users for one-time verification and for sharing the information about identity with their choice of service providers. Here, users are provided with options to choose verification methods like facial recognition, user authentication, codes, etc.
10. Securing Personal Information
With the use of advanced digital storage technologies like blockchain, highly secure and sensitive personal information like social security numbers (SSN), date of birth, bank account number, and other identifying information can be kept safe. It is definitely more secure than traditional systems, which are highly susceptible to hacking and phishing attacks. In fact, such improved encrypted technology can be used to verify critical information and provide access to end-users in industries like healthcare, travel, hospitality, insurance, finance, and education.
Final Note
These were some of the major applications of blockchain that is revolutionizing the payment sector that needs a robust form of technology, which is safe, quick, efficient, and hard to infiltrate. It is no wonder why a majority of industries and companies are slowly migrating to blockchain technology for improving upon their customer satisfaction (CSAT) index and at the same time providing a higher degree of transparency to their clients.
SEE ALSO: IOTA Launches $100 Million Foundation In Abu Dhabi To Boost Distributed Ledger Technology
