BLOCKCHAIN USE CASES October 3, 2017
TECHNOLOGY
AND
Bitcoin and other crypto-currencies have been on media glare in 2017, focus has now turned to blockchain, the underlying technology that powers these digital currencies. But blockchain technology has many more potential use cases and applications other than just serving as the fuel behind Bitcoin.
Blockchain finds Banking and Finance as the prime domain to be utilized in future. Payments from one place to another, overseas payments. Just imagine the number of international transactions that happen everyday in the bank and both the giver and the recipient trusts the two banks which carries out this transaction of money transfer from one place to another. The blockchain will register every transaction in a shared database just like Google sheets and each entry in the sheets holds a logical relationship with its predecessors. This makes it absolutely secured and efficient transaction system. This process can make your international money transfers safer and cheaper, it can reduce the manual efforts in settling the transactions in the bank.
Trade Finance can benefit from Blockchain a lot. Barclays conducted one of the first blockchain-based trade finance deals with live customers in 2016, using a system developed in partnership with Israeli fintech Wave. The transaction was a letter of credit a document that seller will be paid the moment goods are received. Completing such transactions are slow and paper-based process, but Barclays’ system was able to execute a deal in four hours that would usually take a week to complete. The letter guaranteed the export of $100,000 worth of agricultural products from Irish company to the Seychelles Company. This could benefit the global trade finance sector is worth $10 trillion per year. The current trade finance system is slow and interrupt business and make liquidity hard to manage. Barclays’ successful transaction shows how blockchain could streamline trade finance deals. Blockchain is secured because of logical relationship between one record to the next which decreases the chances of money laundering and data theft.
How it stores the data? Think of a simple table which has a record with the value as (a, ab, cd, 45, 100), the blockchain will generate a hashcode for this data and let’s suppose it is generated as 1374528. So the first record looks like this (1374528, a, ab, cd, 45, 100), now the next record will completely depend on the previous hashcode so the next record let’s suppose is (b, bc,de,113,442) so this record will also have the previous hash code stored in it so the record will look like (1374528,b, bc,de,113,442) and the blockchain will generate the hashcode for this record and suppose that is 47649272 so the record will look like (47649272, 1374528, b, bc,de,113,442) . So you can’t access any record without having the hashcode and any change in the value of a record will change the hashcode of every record and which will not match to the hashcodes to the owners of the record. This makes it absolutely secured. The data theft is almost impossible unless somebody can decode the hashing and write de-hashing mechanism.
Use Cases in Different Industries The blockchain finds its utilization in majority of industries like RealEstate, Healthcare ,Supply chain and Insurance. In Insurance, it can be used as smart contract between the insured and insurer. And smart contracts can be saved in the blockchain and can distributed in the decentralized group of storage units. It can reduce the paper work in the big way as smart contracts are not existing on just one computer rather its stored in millions of decentralized storage and blockchain processing units.
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