The blockchain is the latest buzzword. With multiple validations and verification processes in place, the distributed system is known to be able to share booth static and dynamic data. Given that this peer to peer network is one of the best ways to communicate and transact, the technology is so secure that hacking only one system in the network doesn’t give away the source of others. The system is protected and allows a chain of applications which can be built on the system without being bothered about any tampering.
In a real-world scenario, the blockchain technology can be used in several institutions and industries which are evolving or just changing their way of working gradually to adapt to the latest systems to stay in the market.
- Payments: there are several countries where banks or banking infrastructure is not that developed. Blockchain can be used to mine digital currency which is not subject to a myriad of fluctuations, unlike the local ones. The local currency in countries like Zimbabwe and Venezuela is usually not trusted by the citizens, hence, something sturdier is recommended.
- Trade Finance: processing the letter of credit is usually a very exhaustive and time-consuming process. Not only does it create issues by holding back the liquid funds and forces the buyer to postpone the date of purchase. However, with a blockchain technology in place, the process can be cut down to a few seconds instead of wasting several hours over a bank counter.
- Smart contracts: a smart contract is an agreement between all the systems of the peer to peer network. Whenever the required conditions are met over the network, a set of instructions are triggered which is basically how a blockchain works. Integrating smart contracts in payment gateways can help merchants transact in a better way which is not only secure but faster than the usual 128-bit SSL encrypted systems.
- Tracking that supply chain: companies are not devoid of ERP and supply chains. The visibility is limited despite an exposed system. However, finding out the placement of the product in the entire cycle is a challenge at any given point in time. With a blockchain technology or system in place, you can now track your products from the manufacturer to the wholesale and suppliers in a jiffy. With a system so secure and accurate, not to mention fast, the immutable nature is something that all companies can use in the coming days.