Blockchain technology applications and use cases in 2022
It’s hard to believe that blockchain technology is only a little over 10 years old. In just a short span of time, this innovative technology has already begun to change the world as we know it.
From finance and banking to education and healthcare, blockchain is being used in a variety of industries to improve efficiency and security.
In this article, we will explore more about blockchain technology and some of the most interesting blockchain applications with blockchain use cases currently in action. We will also take a look at some of the examples of companies that are being benefited from blockchain technology in 2022.
Let’s get started.
What is Blockchain technology?
A blockchain is a digital ledger that stores all the records and transactions. It is constantly growing as “completed” blocks are added to it with a new set of recordings. This technology is designed in a way that makes it impossible to hack the system or forge any data stored in it, thereby making it secure and immutable.
Blockchain technology is not just limited to the banking and finance sector. It has a wide range of applications across different industries.
Blockchain use cases in banking, finance, and insurance
Banks adopt blockchain technology to process transactions more quickly and securely. In fact, some banks have already started using blockchain applications to issue loans, credits, security checks, and streamline their entire processes like
Money transfers
Banks are often criticized for their slow and inefficient money transfer processes. This is especially true when it comes to international money transfers, which can take weeks or even months to complete.
With the help of blockchain technology, banks can streamline this process by using a distributed ledger to maintain a transparent record of all transactions. This way, banks can confirm the authenticity of the transfer immediately and avoid any fraudulent activities.
Furthermore, blockchain technology can also help banks to reduce the cost of cross-border money transfers. For example, HSBC bank uses blockchain technology to make international money transfers more quickly and efficiently.
KYC Program
KYC is one of the best practices followed by banks to lower the cases of money laundering and to keep cybercriminals out of the reach of the banking ecosystem. If it is developed with blockchain technology, the total cost and time will be reduced.
Identity checks
Every day, banks undertake a slew of identity checks to ensure that the people they are dealing with are who they say they are. These checks include verifying the identity of the customer, checking their credit score, and verifying their address. All these processes can be carried out using blockchain technology, which is a secure and transparent database that allows for secure peer-to-peer transactions.
The benefits of using blockchain for identity verification in banks include accuracy, speed, and transparency. With the help of blockchain technology, banks can verify the identity of their customers quickly and easily with OTP, 2-factor authentication, encrypted messages, and more.
Credits and loans
Blockchain technology is being used to streamline the process of issuing and tracking credits and loans. By building a tamper-proof ledger of all transactions, banks can ensure that all debts and credits are accurately represented. This not only helps to reduce fraud but also cuts down the time and costs associated with verifying and tracking transactions.
The technology helps to eliminate the need for third-party verification, which is a time-consuming and expensive process. As a result, banks can save a significant amount of money on their overall operations.
Insurance
The insurance sector has also benefited from blockchain technology. By recording all data on a blockchain, it becomes easier to track down duplicate claims and automate the claims process. Also, it prevents misuse of customers’ data with improved traceability and accountability while boosting cybersecurity protocols.
As per an FBI report, it is estimated that non-health insurance fraud in the US would be approximately $40 billion per year. With blockchain insurance claims, insurers can eliminate such common types of insurance fraud.
For example, Lemonade combines AI and DLT to offer insurance to renters and homeowners. Each participant needs to give a fixed fee every month, and it allocates the rest toward future claims.
It helps to remove bias from submitting and paying claims by grouping customers on the basis of the charity they choose while signing up. Lemonade is based on AI algorithms to establish claim legitimacy.
Blockchain use cases in education
In the education sector, blockchain can be used to store records and create a strong system for delivering online and distance education courses.
Store records
With the help of blockchain, educational institutions can keep a secure and tamper-proof record of all students. The immutable and transparent nature of the Blockchain makes it an ideal platform to store student records, including transcripts, course evaluations, and tuition payments.
This has become especially important as a number of colleges and universities have started using online systems that require students to submit their transcripts and other documents electronically.
Online & distance learning
Another use case for blockchain in education is in the area of online and distance learning. By using blockchain, educational institutions can create a safe and secure system for delivering online courses and distance courses.
This is because blockchain technology can help make the process of authentication and registration more secure, as well as facilitate payments and tracking the progress of students.
By using blockchain technology in these domains, educators and businesses can reduce costs, speed up the enrollment process, record audio, videos, develop curriculum and improve student outcomes.
Blockchain use cases in healthcare
Blockchain technology is revolutionizing the healthcare industry. The reason for this is simple — it is a secure and efficient way of handling transactions. Also, solve numerous healthcare challenges that restrict efficient health and care for the world.
Healthcare is one of those sectors where the information is highly sensitive and must be handled with utmost care. This technology can help to safeguard the patient’s data and keep it secure, thereby reducing the chances of fraud, data breach, or abuse.
Moreover, it can speed up the process of retrieving medical records, payments, reducing the time lag between patient treatment and financial reimbursement.
For example, BlockPill uses Blockchain technology to ensure safer medicine prescriptions for the users.
Blockchain use cases in travel and mobility
In recent years, the travel industry has boomed up offering you a huge space for technological advancements. It can help reduce the cost of transactions and make the booking process more secure and transparent. Banks and travel agencies can use blockchain to track the whereabouts of travellers and their baggage, as well as to manage refunds and payments.
From online bookings to secure transactions and transaction tracking to reward programs, blockchain technology has solved a variety of problems faced by travel and mobility businesses.
For instance, Singapore Airlines has a blockchain-based digital wallet built in their app that offers loyalty rewards in terms of points to be used in flight booking and purchases as an advantage to frequent flyers.
Blockchain use cases in government sector
Blockchain is also being used by governments to create and track land registries, which makes it easier to identify property ownership and to track goods that have left a country, such as pharmaceuticals.
But the key application of blockchain in the government sector is probably in the area of identity management. In the government sector, this would involve creating digital identities that can be verified by any agent whether it be a state department employee or a private entity. All of this information can be securely stored within the blockchain, which means that there’s no risk that it could be tampered with or altered by anyone other than authorized agents.
The use cases for blockchain technology in various industries are evolving at an endless pace and the sky is the limit as to what blockchain technology can achieve. With the passing years, more industries are embracing the use of blockchain technology in a holistic way.
Not just above discussed businesses use blockchain technology but industries like real estate, supply chain, automobiles, human resources, pharmaceuticals, advertising, and more are able to grow their business and accomplish their goals.
So, if you are looking to stay ahead of the curve in this rapidly growing industry, ensure to invest in blockchain technology.
Final thoughts
As we move into 2022, it’s obvious that new innovations in the technology will leverage the power of blockchain but before that, it is a must for every business to know what is blockchain technology and how their business can reach desired outcomes by recognizing blockchain as a perfect fit for their business model.
If you’re curious about blockchain, top blockchain use cases, and more, contact us. We offer blockchain application development services that can help you get up and running with this transformative technology.
Do you still have any questions? Leave a comment below and we would be happy to address them!
