The use of blockchain technology extends beyond the bitcoin bubble and cryptocurrency. Here are 5 ways people will use blockchain technology in the future.
The cryptocurrency industry is as strong as it’s ever been. What’s happening beyond the Bitcoin bubble, however, may be even more interesting.
See, the thing that makes Bitcoin possible is the technology known as the blockchain. In simple terms, blockchain is a public ledger that tracks digital information in a secure manner. That data gets recorded in files called “blocks.”
At first, blockchain was a vehicle for Bitcoin and other cryptocurrencies. Well, it turns out that this technology provides many other benefits. Here are the 5 biggest advantages of blockchain.
- Supply Chain Management
Many global supply chains are already using blockchain technology. There are two big reasons for that: cost-effectiveness and traceability. Organizations use blockchain for tracking the goods, their origin and quantity.
All these benefits provide a new level of transparency to B2B ecosystems. Not that long ago, production process assurance was very complicated. Blockchain streamlines this procedure to a large degree.
- P2P Transactions
Among other things, Bitcoin is famous for its peer-to-peer network. Transferring funds across the globe is something that you can do in a couple of clicks. That’s why many businesses now prefer cryptocurrency for international payments.
You can use other P2P services to process these payments, but you’ll have to pay a fee. Plus, these services are not as secure as blockchain and grant less freedom to their users. They can also have other limitations, e.g. location restrictions.
- Quality Assurance
Quality assurance is one of the biggest benefits of blockchain. If a business notices an irregularity in its supply chain, it can use blockchain to get to its point of origin. That way, carrying out an investigation becomes quite a bit easier.
For example, consider the food sector. In this industry, tracking batch information is of crucial importance for food safety. Blockchain won’t solve all quality assurance concerns overnight, but it’s a good start.
- Stock Exchange
Using blockchain for securities and commodities trading isn’t a new idea. Remember, blockchain systems are open and reliable. With that in mind, it’s no surprise that they seem like a natural next step for stock exchanges.
The Australian Securities Exchange is already planning on using blockchain for equity transactions. Many other stock exchanges should follow their example soon. Investormint.com has more information on these developments.
- Smart Contracts
Processing contractual transactions by hand takes time. This is particularly true for organizations dealing with them on a daily basis. With smart contracts, you can confirm, sign, and enforce any agreements automatically.
These days, many blockchain solutions combine smart contracts with their own cryptocurrency. This allows businesses to integrate services without giving out too much proprietary information.
Beyond the Bitcoin Bubble: The Conclusion
As you can see, blockchain systems hold a lot of potential. Despite still being in its infancy, many businesses are already using blockchain to gain a competitive edge. Even if the Bitcoin bubble pops, the technology behind it is quite safe.
Want to know more about what’s going on beyond the Bitcoin bubble? Here are the four main things that the blockchain industry needs to evolve further.