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Blockchain technology is one of the best recent innovations. Through blockchain, any business or individual can benefit from enhanced security, transparency, and data traceability, all without the need for a particular central authority to rule over the organization. Nowadays, as an investor, if you want to check the bitcoin price today to purchase coins, you can make a transaction rapidly due to blockchain technology.
But besides cryptocurrency transactions, blockchain started spreading among various businesses and organizations. That’s because its design makes it less challenging for firms to ensure data security and also facilitates the payment process due to smart contracts. Using blockchain technology is emerging in multiple sectors and industries, which we’ll discuss in the following paragraphs.
Central Bank Digital Currencies (CBDC)
Blockchain technology has drastically changed the financial industry, and this led central banks to consider adopting digital currencies. Therefore, these banks will issue widely accessible digital coins so that most people can use them for transactions and transfers. Countries can approach the adoption of digital currencies by central banks through:
- Centralization, where banks manage the ledgers in which transactions are recorded;
- Decentralization, where central banks set the rules and requirements for the transactions to be recorded by users or financial third parties;
The benefits of CBDC include the following:
- Allow users to use central banks’ services directly;
- Eliminate the risk of a commercial bank collapse;
CBDC also present some disadvantages:
- There’s less privacy for users since the banks have complete control;
- There’s a possible competition conflict between central and commercial banks;
Metaverse
The Metaverse has caught the public’s attention since the Bored Ape Yacht Club became popular. The collection of 10,000 unique NFTS built on the Ethereum blockchain was one of the first important steps for the public to experience the Metaverse. In the beginning, people were slightly reticent about their usability.
However, the Metaverse has developed due to blockchain technology developments, and now it brings new opportunities to a few industries, for example:
- Banking, where investors can simulate returns based on risk profiles;
- Manufacturing, where immersive experiences help architects and construction teams better envision the buildings;
- Real estate, where buyers can interact with 3D designs of the desired properties;
The Metaverse goes hand in hand with Augmented Reality (AR) and Artificial Intelligence (AI). Together, these innovative technologies can help professionals from all fields be more efficient and accurate, which helps cut costs and save time.
Blockchain-as-a-Service
Blockchain-as-a-Service is one of the latest developments implying blockchain technology. BaaS is made for companies related to building blockchain applications, and it’s basically a cloud-based network. Microsoft, Amazon and other companies have already approached Baas, primarily using the Ethereum blockchain.
At its core, BaaS is based on the SaaS model and works similarly by allowing users to build, host and operate their own blockchain applications. At the same time, this system is highly beneficial for calculating a clear ROI without much of a fuss. BaaS is already used in the following ways:
- The automotive industry because it provides end-to-end accessible records for the automobile’s transport;
- Healthcare, where professionals can keep a transparent and universal version of a patient’s medical data;
- Transportation, where passengers can travel using identification tokens;
Blockchain as a base for social networking
It is estimated that the worldwide number of social network users will continuously increase, which can become a problem in the future for the regular social media networks people now use. But with blockchain technology, the issues with privacy breaches, data control, or authentic content can be controlled better.
Decentralized social networks can correct the problems of Web2 social networks, and we already have some examples:
- Steemit is a content curation platform through which users can earn cryptocurrency based on how many views their content gets;
- Peepeth is a decentralized version of Twitter built on the Ethereum blockchain. Here, posts can’t be deleted once published, and many other applications’ features prevent censorship;
However, decentralized social media networks will also face challenges. For example, the immutable feature of the blockchain means users won’t be able to control their online activity. At the same time, blockchain would also need some improvements regarding data storage issues.
Blockchain for the financial sector
The financial industry, or Fintech, has only recently experienced new development and innovative movements. More apps and websites are created to make laborious processes more efficient. But if combined with blockchain technology, this sector can increase more in value because blockchain can solve some of the Fintech’s challenges, such as the following:
- Dependency on a centralized system;
- Lack of trust due to confusion regarding how these financial apps work;
- Slower processes caused by the involvement of various third parties;
Blockchain technology can provide a stable base for development, for example:
- Banking and P2P payments that work through a decentralized system which uses consensus algorithms;
- Trading and trade finance by optimizing processes and reducing the risks associated with trading;
- Digital identity, helping financial users sign documents digitally and share data without worrying about safety risks;
Blockchain in real estate
Real estate is one of the industries where technological advancements were absolutely necessary. It is also the domain where managing data can be challenging for investors. Blockchain technology comes with solutions in real estate because it allows both parties to use certain features. Until now, blockchain has already made significant changes in real estates, such as:
- Providing platforms and marketplaces to support real estate transactions;
- The lack of intermediaries facilitates the process because tasks like listing, payments and legal documentation can be programmed within the network;
- The decentralized approach allows for more transparency so that any information can be verified;
- Costs can be trimmed down due to eliminating fees on real estate transactions;
- Real estate investing can also be improved by allowing fractional ownership;
Wrapping up
Blockchain technology can pave the way towards financial freedom and complete risk-free transactions. But there’s more to it ―blockchain will be integrated into an array of industries and domains because it provides transparency and data safety like no other current technology.