Applications, utility, and use cases of blockchain with examples from 2024.

Cryptocurrency Guide » Blockchain Applications.

What are the uses of blockchain? The creation of bitcoin came with another innovative technology: Blockchain. Since its emergence, many companies have given it various uses. Do you want to know the potential of blockchain? In this article, we will tell you all about the main applications of blockchain.

Although blockchain was created alongside Bitcoin, the innovative applications of blockchain emerged with Ethereum. While the bitcoin blockchain limited its use to financial applications, the ethereum blockchain allows for the execution of small applications, known as smart contracts.

This utility of blockchain has caught the attention of numerous international companies, who have started developing applications on Blockchain. Its benefits are manifold: Elimination of intermediaries, automation, security, or cost savings, for example.

Below, we have gathered a wide number of blockchain applications in companies. The uses of this technology in different sectors can be infinite. Therefore, if you want to know about a specific application, we recommend using the following index.

Cryptocurrencies

Everyone associates blockchain technology with cryptocurrencies. And it's true that blockchain is the cornerstone of practically all virtual currencies. Thanks to them, this technology is developing considerably.

Like Cardano, which has created a layered blockchain supported by a Proof of Stake validation system, and although it is still in the testing phase, it seems to represent a significant improvement in blockchain.

However, most experts dare to say that cryptocurrencies are just the tip of the iceberg in terms of the potential applications of blockchain technology.

Below, you will find numerous examples of blockchain applications and their use in companies.

Finance and Economy

The main use of blockchain is financial, since its creation arose to support virtual currency transfers. For this reason, the first uses of blockchain technology were focused on the economic sector, which is where it has developed the most.

The financial applications of blockchain are multiple: automation of transfers, rental payments, or the creation of exchanges.

Its advantages over traditional finance are also numerous:

• Prevent fraud, as the conditions are predetermined in the smart contract and mandatory.
• Increase trust, as they allow for safer operations.
• Reduce risks, for individuals and companies alike.

Fintech and banking

Banking is increasingly applying technological solutions to improve its financial activities. This industry is known as Fintech or Financial Technology.

The combination of fintech and blockchain is already relatively common. Some studies highlight that 77% of fintech companies plan to adopt blockchain as part of their systems and processes within two years. In the case of payment companies, adoption increases to 90%.

The advantages that blockchain offers to banking lie in the automation of the process, which eliminates intermediaries and manual checks, resulting in a considerable cost reduction.

Furthermore, transfers made on a blockchain-based system also reduce processing times: All transfers, even international ones, would be resolved within minutes.

Big Data

The blockchain is nothing more than a huge ledger. A database that effectively and quickly manages millions of daily transactions. But it has a limitation: It lacks tools to analyze such a large amount of data.

The combination of Blockchain and Big Data is the perfect solution for this. The tools offered by Big Data allow for the analysis of all the data within a blockchain and provide valuable information for companies.

For example, some of the utilities that Big Data applied to Blockchain offers are:

• Security, since Big Data provides more instruments to detect potential frauds.
• Transparency, as it allows for the collection and classification of all the information, making it more accurate and clear.
• Risk avoidance, as it can detect risky transactions.
• Providing data to financial companies, such as consumption patterns, for example.

Notaries

A notary is an official who authorizes and certifies documents and contracts with their signature.

If the governmental recognition of blockchain's capacity for contract management, both public and private, were to be acknowledged, it could completely eliminate the intermediary role of the notary.

Contracts made on the blockchain are automatically authorized thanks to the miners. Moreover, they are completely unalterable, preventing bad practices, and are resolved automatically, which would greatly reduce subsequent resolutions in courts.

Digital Signature and Identity Verification

Although it may not have the recognition it deserves, identity verification is one of the cornerstones of blockchain technology.

If a secure and robust blockchain service can be created to identify users, the use of blockchain will expand to a multitude of applications: digital signatures in notaries and banks, telematic check-ins in hotels and holiday rentals, voting, or any type of contract that can be signed from any device.

Many startups are developing this technology, such as Civic or the banking consortium Niuron. Once achieved, it will support many of the blockchain applications we show you in this article.

Logistics and transportation

The field of commerce involves multiple agents and intermediaries: manufacturers, wholesalers, distributors, suppliers, courier companies, consumers...

The transportation of goods between all these actors generates a huge amount of documentation, mostly on paper. The application of digital technologies to this sector would reduce such paperwork, streamline the transportation of goods, and considerably reduce costs. If this technology were blockchain, the possibilities would multiply.

Blockchain-based applications in logistics could automate all document management, eliminating many intermediaries and providing information in a transparent, clear, and instant manner.

A blockchain logistics platform could be a collaborative agent in the industry and could directly connect shippers with carriers.

Internet of Things

The Internet of Things or IoT is a concept that refers to a digital interconnection of everyday objects with the internet. Interconnectivity is much more present than we think and is already present in home automation, in smartwatches or activity bracelets.

Many experts claim that blockchain is the perfect friend for IoT as it would significantly improve the security of current cloud services and allow protection of user identity (source).

Food and traceability

But maybe the utility of blockchain in the logistics and transportation sector with the greatest potential is traceability.

The immutability of the blockchain provides transparency, security, and trust to the data provided by companies in terms of traceability.

For this reason, many food companies have been interested in blockchain programs that ensure the origin of their food, giving more confidence to consumers.

These solutions would involve, for example, a QR code that would show the origin and distribution of products in a matter of seconds.

Tourism and hotels

Blockchain solutions have also reached the hotel industry, although they are not yet very mature.

Virtually all blockchain services have been developed by large hotel chains and are focused on reservation management. Smart contracts allow them to be carried out much more efficiently and profitably for these companies.

But blockchain is also applicable to other areas related to tourism. Identification systems based on blockchain will facilitate check-in at hotels and airports, streamline processes, and provide more control and privacy over customer data.

Energy

The energy sector is not immune to the potential of blockchain applications. The first energy transaction with blockchain occurred in New York in April 2016, and since then many actors in this industry have invested in this technology.

According to a study by Wood Mackenzie, there were already 122 companies worldwide involved in this technology and 40 projects that had been developed by the beginning of 2018. They estimate that between April 2017 and March 2018, 300 million dollars have been invested in blockchain in the energy industry.

Blockchain could streamline transactions between different agents in the energy trade, such as marketers, distributors, producers, suppliers, and consumers, and eliminate some intermediaries.

Some of the blockchain services highlighted by electricity companies include certification of origin guarantees, application to sustainable mobility, energy trading between large companies, security of devices connected to the grid, and certification of production of photovoltaic panels to incentivize production.

Insurance

The potential of blockchain in the insurance sector also lies in the emergence of smart contracts. In these cases, a smart contract could automatically execute a clause of an insurance contract, without the need for experts or legal problems.

In addition, due to this self-executable capability of smart contracts, it allows for insurance to be resolved in a more transparent, fair, and without the need to disclose personal data or confidential information.

The potential that the insurance sector finds in blockchain is focused on micro-insurance, an area that they believe they can promote and market thanks to the tools offered by the blockchain.

Lawyers, law and the legal sector

Smart contracts allow for unalterable and irreversible, secure, transparent, and confidential contracts. That is why many experts believe that one of the sectors where blockchain can have the most impact is the legal sector.

Smart contracts would replace traditional contracts, creating a more transparent environment for users and more efficient for law firms and courts.

Does blockchain mean the end of lawyers?

Of course not. Blockchain does not exclude legal experts, as they will be responsible for creating smart contracts. Therefore, the technology industry will require additional skills from legal professionals, who will transition from writing traditional legal texts to programming smart contracts.

We all know that the legal sector is one of the most resistant areas to innovation, so the integration of blockchain in the legal profession may still be uncertain. However, it is also true that some legal firms are starting to invest in blockchain technology. For example, at Cornell Tech, they insist that smart contracts will become part of our daily lives and they are developing smart contracts specifically for the legal sector.

Human Resources

The transparency and security that blockchain transfers could represent a transformation of the personnel selection processes.

An integrated platform on blockchain would guarantee the veracity of the candidates' data. For example, it would confirm the identity and authenticity of titles, certificates, and references.

Similarly, a combination of blockchain technology with Big Data tools would allow for a better analysis of candidates to identify the one who best fits the job position.

In addition, the potential of smart contracts could be applied to other tasks of the HR departments, such as contract modification or automation in payroll payment.

GDPR

Although at first glance, the security, encryption, and immutability of the blockchain seem perfect for managing databases with personal data, these same characteristics can be against some requirements of the new General Data Protection Regulation.

That is why numerous expert voices are declaring themselves against applying blockchain technology to data protection. The fundamental reasons are:

• Impossibility of the right to be forgotten. The blockchain cannot be altered, so it is impossible for a user to request to be deleted from a database, a right that is included in the GDPR.
• Retention of personal data. The new Regulation requires personal data of users to be kept only for as long as necessary to carry out the relevant activity. The impossibility of modifying the blockchain would force the retention of this information indefinitely, which also contradicts the GDPR.
• Updating of data. Personal data must be accurate and up to date. The immutability principle of the blockchain would make it difficult to modify such information.

However, the potential offered by smart contracts can solve these problems, using the blockchain as a tool to manage a database and not the database itself.

Votations and Elections

If we were to ask our politicians, they would surely claim that it is impossible to rig an election. And they never lie, do they?

What we can say for certain is that a blockchain voting system would dispel all concerns, by providing an infinitely more secure platform.

In blockchain-based applications, in order to manipulate a single vote, one would have to modify the entire chain of blocks. This would require excessive computing power. No one has that much computing power, not even Google or Facebook servers.

In addition, the use of blockchain technology could increase low voter turnout. Some voters do not go to the polls because they have to identify themselves and align themselves with a party, or simply out of laziness.

With future blockchain applications, voters can transfer their vote online and maintain their anonymity.

Telecommunications

Telecommunication companies have found in blockchain a perfect tool to enhance their services. So much so, that a study conducted by Research and Markets reveals that blockchain technology in telecommunications will go from generating 46.6 million dollars in 2018 to becoming an industry worth 993.8 million dollars by 2023.

Their applications will allow them to add third-party services to their systems simply by adding their blockchain, creating a much more flexible network of telecommunications services. In addition, it is expected to reinforce both internal processes and the services that these companies can offer to businesses.

However, all the efforts of the telecommunications industry are focused on improving the security of their systems through the use of blockchain. This is aimed at protecting the amount of data, both personal and confidential, that these companies handle and has been driven by the numerous security issues that traditional systems have caused.

Property Register

There is a public interest in having a secure and transparent database of the property register that protects citizens' rights. Currently, this information is hosted on centralized servers that, although in an advanced state, are not dynamic enough to absorb the continuous transformation of the real estate sector.

The current applications of blockchain would bring reliability and transparency. Furthermore, it is estimated that it will be able to revitalize the real estate market (both national and international) by increasing trust in the registered information and the procedures followed.

Health and healthcare

The healthcare sector is also not exempt from innovative applications of blockchain. Currently, many technology companies are developing blockchain services for the healthcare sector. However, few well-known companies are employing these practical uses of blockchain.

Some potential uses of blockchain in healthcare are:

• Control over patients' medical history. Data could be shared among multiple medical centers, in a decentralized manner and with immediacy and security.
• Patient confidentiality. Provided by encryption and the security of the blockchain.
• Traceability and control of medications. By integrating blockchain into pharmacies, doctors would have absolute knowledge of medication consumption.
• Preventing fraud in medical policies and controlling malpractices in healthcare services.

Education

Currently, blockchain technology applied to education is still in the experimental phase. However, numerous studies, such as the one conducted by the European Commission, highlight that blockchain can transform the educational sector.

Some of the innovative applications of blockchain applied to education are:

• Creation of document sharing platforms with permissions, encryption, and systems to prevent theft and fraud.
• Issuance of certificates and official documents.
• Greater protection of intellectual property.

Journalism

In an era where journalism is experiencing a strong crisis, resulting in the closure of newspapers and newsrooms, blockchain technology has emerged as an alternative means to make such projects profitable.

In these cases, the blockchain seeks to create new channels of dissemination and sources of funding, in order to make these newsrooms and even the work of independent journalists profitable.

Marketing

The future applications of blockchain in marketing can have a serious influence on current SEO and SEM. That is, on the way companies advertise their products through the internet.

Today, these services are concentrated in three major players: Google, Facebook, and Twitter. That is, it is completely centralized.

A decentralized platform could directly connect the media with advertisers and thus eliminate these intermediaries. The security and transparency of the blockchain would transfer more trust to this platform, as its conditions would remain unchangeable in smart contracts.

In addition, the guarantee and immediacy offered by cryptocurrency transactions could be applied to online commerce, also conveying trust and reaching a larger audience.

Sport and football

Many cryptocurrencies aim at the entertainment industry. But in the case of football, it is the clubs themselves that have embraced blockchain technology.

This is the case of Paris Saint-Germain or Juventus Turin, which have partnered with third parties to create a rewards system for the acquisition of cryptocurrencies. Thus, club members who buy tokens from their club can participate in online surveys or benefit from exclusive content and even prizes.

Other teams use it for sports betting. For example, Arsenal has partnered with CashBet to develop a cryptocurrency for betting during Club matches.

Even UEFA has wanted to take advantage of the security offered by blockchain. Thus, the 2018 UEFA Super Cup tickets were sold entirely through a blockchain platform to prevent counterfeiting.

The advantages of blockchain technology are not only applicable to the world of football. Startups have emerged that apply decentralized solutions to sports financial models, such as the company Globaltalent.

Through this platform, individual investors can bet on clubs and individual athletes, without the need for intermediaries. On one hand, athletes receive funding. On the other hand, their fans benefit from gifts and exclusive content from their favorite athletes.

Video Games and eSports

The world of video games has been one of the sectors that has integrated cryptocurrencies and blockchain into its platforms the most. However, most of them use them as rewards for their players, instead of integrating blockchain into their systems.

The most popular example of blockchain in video games may be Cryptokitties, a video game for breeding and trading digital pets that runs on the Ethereum blockchain.

ICOs have also emerged to create cryptocurrencies dedicated to video games. This is the case of TRON, a blockchain platform created in September 2017 by the Chinese entrepreneur Justin Sun. Its goal was to create a decentralized entertainment platform, bringing together games, casinos, videos, or the possibility of live streaming concerts.

Another example is StreamLoots, which allows eSports players to connect with their followers and gives them the opportunity to monetize their games. After expanding in the United States, they decided to offer these services through a blockchain platform.

Real Estate Sector

Most of the improvements in the real estate sector are also aimed at eliminating intermediaries. Blockchain could create P2P platforms to directly connect sellers and buyers without the need for real estate agents, and with integrated anti-fraud systems.

Another advantage of blockchain that the real estate sector is trying to exploit comes from the high divisibility of cryptocurrencies. They are developing investment platforms that allow small investors to acquire small fractions of properties, either for rental or sale, in order to obtain certain profitability from their acquisition. In addition, smart contracts would provide security and transparency to these solutions.

The implementation of blockchain technology in the real estate sector would reduce transaction times and costs and, if the legislation is developed, a reduction in mortgage costs.

Mortgages

Currently, the legislation is not ready for the mortgage industry to develop on the blockchain.

The purchase of a house has legal, tax, and registration implications: real estate agents, intermediaries, notaries, or property registrars.

If the regulations allowed the substitution of notaries with smart contracts or if property registration was fully developed on the blockchain, the signing of a mortgage could be resolved almost automatically. This would considerably reduce the costs, taxes, and fees of a mortgage and decrease the time required to complete a real estate transaction.

Music

Blockchain also has a place in the music industry. So much so that the sector giant, Spotify, acquired Mediachain, a startup that combines blockchain infrastructure with content identification technology. The goal is to create a universal media library that allows for better author identification and faster distribution of compositions.

However, most of the advancements of blockchain in the music sector are focused on protecting copyrights.

To give you some context, there's nothing better than an example. Kevin Kadine, composer of the 2014 international hit All about the Bass, only received $5,699 for 175 million reproductions of that song on Spotify.

To prevent these ethically fraudulent practices, blockchain platforms for music distribution are being created. Authors will be able to know through a control panel on what devices and through which platforms their compositions are being played. They can also securely and autonomously sell the rights to their songs.

These types of blockchain services would eliminate many intermediaries and directly connect authors with their audience.

Public Administration

Public Administration is a giant enterprise, so the future applications of blockchain in its processes can be endless.

Five blockchain applications in Public Administration could be:

• It would provide security to the data they record of all citizens. In addition, encryption would provide inviolability to their databases.
• It would allow for more transparent voting. The uses of blockchain technology are not only applicable to elections, but could also be used for public consultations.
• Digital contracts could provide a more secure and reliable solution for certificates, records, or online payments.
• Decentralized systems and automation would significantly streamline administrative procedures.
• The use of smart contracts can also be used to fight against fraud and tax collection.

Art

There is also room for blockchain in the art world. Although its integration is not as developed as in other sectors, initiatives are starting to emerge.

The most prominent ones are focused on verifying the authenticity of works or certifying authorship.

Agriculture

The advances of blockchain focused on agriculture have been focused on improving the quality of food.

That's how ripe.io was born, a startup that monitors the status of vegetables in real time and allows consumers to know the origin of the products in a matter of seconds.

This has caught the attention of large companies and, for example, IBM partnered with giants in the food sector such as Dole, Nestlé, Unilever and Walmart, to improve the traceability of their products.

Wine

The main applications of blockchain in agriculture have been well accepted by the wine industry. Proof of this is the creation of the openvino project.

The advancements of blockchain aim for a more transparent wine market in all its production phases, a much more detailed traceability, and even advancements in price determination of wine in the market.

But perhaps the most promising utility of blockchain in the logistics and transportation sector is traceability. The immutability of the blockchain provides transparency, security, and trust in the data provided by companies concerning traceability.

These are just a few examples of innovative applications of blockchain. New blockchain projects are continuously being published, and it is difficult to imagine in which area it will not disrupt. Gradually, blockchain will develop, and more and more people will understand what it is.

Probably, in the not-so-distant future, we will begin to see everyday applications of blockchain technology that will transform the digital world.