Blockchain is a buzzword these days. With the hype around it, many people have questions about what blockchain is and why we should be excited about it. But most importantly, they also have questions about how this technology will change our lives.
Here’s a quick rundown of some blockchain use cases, including things you can do with your own cryptocurrency today.
How Has Blockchain Improved in the Past Few Years
When cryptocurrencies were first introduced in 2009, some people thought it was all just hype, but now blockchain has become a mainstream topic. The technology itself is still pretty new, but there are multiple ways that we’re seeing it improve on a day-to-day basis.
For example, one way that blockchain is improving right now is by replacing paper records with digital data. As the world becomes more connected through the internet, governments are looking for more efficient ways to store data. This means that instead of relying on old-fashioned paper documents, companies can store all their information digitally using blockchain technology.
Another use case for blockchain is as a tool for tracking goods. While we’ve seen this kind of technology in the past (think RFID chips), it wasn’t nearly as secure or effective as blockchain.
That’s because blockchain allows someone to track multiple items at once while eliminating the possibility of losing anything. That helps when you’re buying or selling something online where there could be a loss if the item gets lost en route.
The best part? You don’t even need to own cryptocurrency to take advantage of this technology. In fact, you can use it without ever buying into Bitcoin or other cryptocurrencies.
How to Use Blockchain for Major Use Cases
Once you learn how blockchain works in general, it’s easy to see its potential for a lot of different industries. If you want to get started in cryptocurrency trading, you can use exchanges like Coinbase to purchase Bitcoin or Ethereum. Once you have those coins, you’ll need an app like Blockfolio to manage them.
Other industries that can benefit from blockchain include real estate, insurance, and finance. For example, insurance companies have been experimenting with blockchain for several years. One reason why is because it offers a more secure way to verify claims than standard paper processes.
Similarly, we can use blockchain for property management. Instead of sending out emails to tenants, landlords can use dapps.
And finally, there are plenty of financial services that could use blockchain technology. Here are a couple examples: credit card companies could use this to make sure that transactions are processed correctly. And banks would benefit from blockchain as a tool for managing loans.
Ethereum, in particular, is used massively for decentralized financial applications, that provide basic financial services for stablecoin and crypto asset HODL-ers.
The Future of Blockchain in Everyday’s Life
As blockchain continues to evolve, more and more businesses are turning to it to solve problems. Even though we haven’t quite reached the point where blockchain is being used in every industry, it’s clear that it has huge potential.
In particular, blockchain seems to be particularly useful for industries that require a high level of security and transparency. Since everything that happens on the blockchain is public, anyone can view it at any time. It’s also a big plus since blockchain doesn’t rely on anyone else for verification. That makes it much safer than traditional methods.
So far, blockchain hasn’t gone anywhere yet, but it’s definitely gaining momentum. Companies are starting to realize that there are so many benefits to using it, including making sure no one can steal your personal information and offering better security.
Interested in crypto? Check our crypto diversification guide before you go further!