The evolution of next-gen technologies like Blockchain has disrupted various sectors including healthcare, banking, politics, security, government, education, organizations, real estate, legal, startups, and more. Blockchain application developers are making use of the technology to prevent thefts in the real estate and financial sectors using smart contracts. Let’s dig in deeper into the applications of blockchain.
According to Gartner’s research estimates blockchain will generate $3.1 trillion in new business value by 2030.
According to the research analysis, the constant evolution of blockchain technology will result in better advancements in the industries. Let’s explore why we need to adopt blockchain technology.
Uses of Blockchain Applications Transforming Society
1. Financial Services
Traditional financial systems were cumbersome, slow, and involved inefficient intermediaries to resolve conflicts within the specified time. Blockchain uses smart bonds and contracts to introduce innovations in the financial sector. It automates the financial tasks of the bondholders to add transparency, efficiency, and prevent penalization. Smart contracts self-execute and self-maintain to prevent inefficiency of the transactions.
Some Blockchain Financial Services Applications
Asset Management: Traditional methods of asset management for cross-border transactions can be expensive and risky. Brokers, custodians, and settlement managers each with their ledger records have significant inconsistencies. The blockchain ledger reduces errors by encrypting the records. The self-executing smart contracts simplify the process while eliminating the need for intermediaries.
Insurance: Despite online brokers, policyholders depend on offline brokers with inadequate knowledge of the policy. Offline policies processed through paper contracts are prone to errors and requires human supervision. Insurance giants are using blockchain technologies to prevent fraudulent claims by digitally tracking medical records of the policyholders. Blockchain technology is a cryptographically secured form of shared record-keeping. The technology enables policy processors to reduce the redundancies of the insurance industry. It maintains coordination between different departments by eliminating the role of intermediaries.
Processing Cross-Border Payments: The execution of cross border payments involves complex and expensive processes. Blockchain technology has the potential to reduce frauds associated with cross-border payments. Various remittance companies like Abra, Bitspark, and Align Commerce are providing end-to-end blockchain-powered remittance services. Santander became the first bank to merge blockchain to payment apps in 2014. The app enables customers to process cross-border payments 24 hours a day.
2. Smart Property: Embedding smart technology to your tangible and intangible assets can add value more to them. The details of ownership are stored on the ledger which reduces the chances of committing frauds. Smart keys enable only the permitted parties to receive access to their assets. The ledger stores and facilitates the exchange of smart keys only after the verification of the contract to keep the assets all time secure. The decentralized ledger records and manages property rights and duplicates smart contracts when the records or smart key is lost. Smart Contracts reduce property fraud, mediation fees, and questionable business situations.
Blockchain Smart Property Applications
Unconventional Money Lenders: Unconventional money lenders service borrowers with poor credit charge two to ten percent of the loan amount and claim their property as collateral. The burrowers fail to repay the amount and fall into bankruptcy and lose homes. Blockchain-enabled smart contracts can revolutionize the traditional lending system by enabling a stranger to loan you money and taking the smart property as collateral. There is no need for the burrowers to show the lender credit or work history. The property is encoded on the blockchain and the entire process is transparent.
Car or Smartphone Security: Outfitting a luxury car with an immobilizer that can be activated with the tap of the right protocol can prevent it from the thefts. Encrypted PIN code prevents unauthorized access to smartphones. The methods work on cryptography to protect ownership.
The problem with primitive forms of smart property is that the key is usually held in a physical container, such as the car key or SIM card, and can’t be easily transferred or copied. The blockchain ledger solves this problem by allowing blockchain miners to replace and replicate a lost protocol.
Oodles Technologies is a leading blockchain app development company that provides solutions using NEM, Stellar, Ethereum, and other blockchain technologies. Our blockchain expert makes use of smart contracts to facilitate secure transactions during cross-border payments or real estate transactions. We build smart contracts to automate transactions, eliminate third parties, and enhance user trust. Contact us today for more details!