13 Potential use cases of blockchains

By Carded0421 | CryptoSphere | 22 Oct 2021

There's many different potential uses of blockchains and cryptocurrency. Here's thirteen.

1. Digital currency
The digital currency bitcoin came into being in 2008. Its value skyrocketed in 2017 due to a surge in demand for it. It can be coded into a virtual wallet or traded on currency exchanges, and it is accepted by a growing list of merchants and businesses.

2. Time-stamping
In order for data changes to be verified, they must be timestamped so that they cannot be reversed. Time is often expressed in the form of a sequence of digits. Each time a sequence is changed, a new sequence that differs from the previous one must be submitted to a time-stamping server.

3. Proofs of calculations
When data needs to be signed, an algorithm is run on it and submitted to a server for verification. These types of algorithms are often referred to as pseudo-random number generators [PRNG]. [In cryptography, an algorithm can be said to be pseudorandom when it does not produce unpredictable output.] They are built from random data and allow for data integrity without requiring any particular manipulation of data [in other words, they cannot be attacked by cryptanalysis].

4. Labor market
All sorts of data are exchanged between employers and employees. But due to the need for formal records, this exchange of data becomes time-consuming and expensive. For example, it would be very difficult for employers to verify that an employee had attended a job interview without requiring employees to present official documents at all times. With blockchain, many records can be distributed across a network so that they are easily accessible by all parties involved.

5. Stock exchange
In a stock exchange, transactions involve a large number of people and happen around the clock. Since stock exchanges usually take place in a centralized environment, there is a risk that clearing and settlement may be disrupted. In order to prevent disruptions, it is necessary to introduce redundancy, which slows down the transaction speed. In the face of a blockchain system, however, redundancies can be avoided without any problem.

6. Real estate markets
Real estate markets are generally centralized and not very transparent [which results in an inefficient market]. Real estate data is often manipulated by agents or unscrupulous sellers [which can be due to dishonesty or simply because they wish to better position their property]. Blockchain can achieve greater transparency by decentralizing data across the network.

7. Voting
Every country has some kind of system of voting which involves some amount of fraud or manipulation. However, having an immutable record is not necessarily sufficient for ensuring accurate voting results because there are many factors besides the outcome itself that might affect the outcome of the vote. Blockchain systems are often used in countries where post-election fraud is not considered a big problem because governments are able to reliably identify voter fraud more easily on their electoral register systems. Voters can be assured that they have voted for their intended candidate since all votes are placed on a blockchain and cannot be altered without being noticed very quickly by all relevant parties.

8. Smart contracts
Smart contracts can be used in any relationship where an automatic execution of the terms is necessary. Smart contracts are often described as self-executing bits of code on a blockchain network. They are usually used to program payments or the exchange of assets. The advantage over traditional contracts is that smart contracts are executed automatically, so no need for intermediaries or human interference is necessary. It works very similarly to vending machines.

9. Crowdfunding/crowdlending
Blockchain technology can be used to allow people working together more easily, either by removing the need for a central party or by streamlining the way that they interact with each other. These processes can be enabled by a system known as a distributed ledger, which records all transactions in a highly secure way, and can also be used to store information that cannot be compromised. [In the context of crowdfunding, the term "crowdlending" is often used instead of crowdfunding because it is more accurate attribution.]

10. Smart devices
Smart devices are increasingly being used in our everyday life. There have been various experiments in blockchain technology for smart devices in recent years, but many problems still remain to be solved. The main problem with smart devices is that their data is not centralized, which means each device has its own data and the set of functions they offer may not be fully compatible. If data can be stored on a blockchain, this problem can be solved.

11. Virtual Reality
Since many people are more comfortable interacting with systems they are familiar with, it is not surprising that many of the applications mentioned so far have targeted financial services. However, blockchain-based systems are being developed all the time, some of which have moved beyond financial services. One example is virtual reality [VR]. Virtual reality is understood to be a "computer-simulated environment that users can interact with in an immersive way through special equipment."

12. Unique IDs
With blockchain technology, unique IDs can finally be created with absolute security. The most common approach to this is to use a combination of a person's name and an immutable timestamp and distribute it to everyone. This way, users can create their own identity and they can also prove that they wrote the transaction without having to rely on third parties.

13. Private digital ownership
This is a system that enables people to securely store their digital assets — such as cryptocurrencies as well as documents such as property deeds — in an untraceable form across a distributed network of computers with no central records or single points of failure.

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