Distributed Ledger Technology is undoubtedly one of the most talked about subject in the last few years. When a person hears about the term distributed ledgers, what mostly crosses his mind are the terms blockchain, bitcoin, cryptocurrency etc. This is because these are the terms or use cases that distributed ledgers have been associated since the day of its application. Blockchain is the first among the distributed, decentralized technologies that were realized. Here in this write-up, we’re sharing with you the top 10 applications where a distributed technology is capable of bringing in a revolution.
1. Supply Chain Management
By removing paper-based trails, inefficiencies in supply chain can be detected and rectified quickly while helping to locate items in real time. In addition to reducing time delays, it can also reduce human errors. This has serious implications for understanding and controlling the real environmental impact of products.
2. Copyright Protection
With the implementation of decentralized technology, issues such as ownership rights, royalty rights etc. can be addressed in the artistes industry. A comprehensive and accurate database can be created which will enable the transparent and real time distribution of artistes’ royalty to everyone involved with the label.
3. Stock Market
Stock exchanges can be made much more optimal through automation and decentralization. It will help in the reduction of costs levied on customers in terms of commission and augmenting the speed of transactions. Decentralization also eases the paperwork of trade and legal ownership transfer of the security. A faster and efficient trade cycle will also lead to higher liquidity.
Insurance processors have to wade through fraudulent claims, fragmented data sources, or abandoned policies for users and most processes are manual. The decentralized technology provides a perfect system for risk-free management and transparency. Its encryption properties allow insurers to capture the ownership of assets to be insured.
Decentralized technology has the potential to upscale the level of relationship between charities, donors and recipients. Distributed technology can track the transactions, crypto currencies can be used to transfer the funds between benefactors and beneficiaries and all these transactions are made transparent and accountable.
6. Crowd Funding
Crowd funding is a means by which project creators and interested investors can link up. However these platforms charge high fees for middle level entities for facilitating the exchanges. Through a decentralized system of smart contracts this issue can be bypassed. Tokens can be launched to get in investments and later they can be monetized.
7. Retail / Online Marketplace
The retail sector has already discovered some practical applications using distributed technology. Ensuring the authenticity of high-value products, locating stolen goods, protecting both customers and sellers from fraudulent transactions – these are a few applications that distributed technology can deliver.
8. Digital ID-ing and Public Benefits
There are many instances where the grants or programs by governments or authorities do not reach the deserved. With a distributed and transparent system of digital identification and comparing it with the offered schemes for the public, the right beneficiary can be sought out and this will also enable a just distribution of the benefits.
Healthcare sector is one area where confidential data is stored and at the same time very prone to hackers. With the implementation of decentralized technologies such as blockchain, many of the concerns in this sector can be addressed. In addition to storing patient records, the patient or related, who possesses the key to access these digital records, would have control of who gains access to that data. It is also a means to strengthen the HIPAA laws that are designed to protect patient privacy.
10. Title Transfers
The aim of digitalization is to remove the need for paperwork. With decentralized technology in the picture, the transaction can be made paperless, transparent and secure with all parties of the network in the light as to who owns what and where. This will also be seamless but secure with the person having his access key and smart-contracts that dictates his ownership over the object of interest.
These are 10 applications where decentralized technology or blockchain as such can make significant contributions. There is so much more where this came from. The technology is still young and there is still a lot of scope for growth of this technology and for the evolution of its applications. Studies are underway and soon an improved and uniform ecosystem of decentralized networks with standard protocols will be in the offing.
Always in tide with the technology of the times, TA is investing on understanding the distributed technology such as blockchain and researching on how it can be a boon for our clients in the coming days.
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