The term blockchain it begins to be familiar to an important part of society. Largely because it has been associated with the popular cryptocurrencies that have been so popular in recent years. As we discussed in a previous article, It is a coding system on which the structure of these virtual currencies is based, which gives them several properties, such as those related to digital security. But the truth is that blockchains already have more functions than those that are simply limited to this type of currency. We will see some cases in this article.
What are the solutions provided by the blockchain?
1. Cryptocurrencies
It is the best known case and its initial use. Although recent news has called into question its role as an investment asset, the truth is that the importance of its future as a currency seems indisputable. Today it is accepted as a payment currency in various situationseven in important institutions such as some of the main auction houses.
Bitcoin, Ethereum, and other crypto currencies are the best-known examples. The decentralized system that represents the blockchain gives them an element of security and traceability which has made it an alternative to that offered by entities such as central banks and other traditional financial institutions.
This technology makes it possible to store all the information on the currency and the operations, as well as the identity of those who own or have used them, therefore, it is especially useful in conjunction with other tools to guarantee security, such as machine learning fraud detection or those related to the prevention of money laundering. Its decentralized character gives it even more strength, since it is a way to avoid attacks that put this system at stake.
2.NFTs
They are the acronym for “Non-fungible token”, which does not necessarily clarify their meaning. We will try to explain it.
When we talk about non-expendable propertymeans that they are not substitutable, that is, that they are unique. For example, a fungible good would be money, because a 20-euro bill is the same as another. On the other hand, a non-expendable one could be, using the most common simile, a work of art.
Digital creations, such as illustrations made by an author, come to have cryptographic control with technology blockchain, as is the case with cryptocurrencies. Ultimately, it would be a digital certificate of authenticity for an asset that, as we have said, is unique. At present, purchases of these goods are being made as an investment and the main auction houses already work with them.
3. Real estate use
The real estate market has some very unique characteristics. Your assets are also unique, but we can talk about assets that are divisible into parts. For example, with regard to an investment, several investors can acquire a property jointly and own, each one of them, a part or parts of this asset.
Subsequently, after the sale, they would recover the investment and distribute the resulting benefit based on the percentage of possession of the property. One of the most efficient ways to perform operations like this is to the “tokenization” of these assetsfor which the technology would be used blockchain.
The situation is not that different from NFTs, only this time it could be part of an asset, rather than a complete one, such as a piece of art.
4. Logistics
Actually, this is a very reasonable use, given the traceability of operations what technology offers blockchain. The tracking of goods does not have to be limited to assets and financial products, the operations that involve deliveries, as well as their payments, can have an open door to evolution and efficiency in this type of system.
We are talking about optimizing resources, but also other variables such as security and the fight against counterfeiting or fraud, as well as investing in transparency and trust in the institution.
5. Health
Having started with currencies and digital works of art, it is difficult to imagine that this technology has aspects to contribute in a sector such as healthcare.
However, the principle is not so different at the optimization level, since we are talking about a decentralized system and with a cryptography that acts in favor of the security of especially sensitive data.
We refer, of course, to medical data storage such as the history of each patient, which can be authenticated and traceable to competent professionals, as well as being updated when appropriate. But it is also relevant for other aspects, such as the medication delivery monitoring.
6. Internal organization of companies
Although we could enter several other sectors in which this technology could offer novel solutions, it is important to point out that it can also be very useful in the different operations of organizationswhatever sector they are in.
entities store a huge amount of information about their operations, many of them related to payments, deliveries, customer profiles, and a long etcetera. Said information can find in the chain of blocks a system to organize itself and give it privacy and security beyond the most classic modalities.
Conclution
As we already advanced at the beginning of this article, the possibilities of the Blockchain go beyond cryptocurrencies. The chain of blocks and its decentralization are on the way to becoming a very useful system for many sectors when it comes to managing information related to their operations. The main challenges lie in international legislation and companies’ awareness of their potential. From here, creativity and innovation already have a very relevant role in its development and implementation.