The emerging blockchain technology can be the beginning of extensive changes in various fields and industries due to its unique features such as decentralization, transparency, immutability and automatic control.
From financial markets, commercial and industrial affairs to government affairs, insurance and even judicial and legal procedures, they can benefit from the unique capabilities of blockchain to increase productivity and transparency.
Int his article we will check out together:
- Blockchain and Capital Market
- Defi field
- Energy and reliability
- Blockchain in the field of supply chain
- Bug Bounty
- Blockchain in the government affairs and governance
- Blockchain in the field of health and medical services
- Blockchain in sports
- Blockchain and artificial intelligence
- Blockchain in the future
Blockchain and Capital Market
Blockchain technology has revolutionized the methods of value exchange between financial institutions and has provided a new way to establish market infrastructure.
Relying on programmable digital assets and securities, this technology can make access to funds simpler, cheaper and faster for issuers.
With the help of this technology, securities can be issued in a very short period of time, even within a few minutes, and ensure the automatic implementation of rights and additional obligations.
This feature of blockchain allows issuers and facilitators to accelerate the speed of issuing securities and implementing financing processes.
Another unique feature of blockchain is the possibility of automating and coding the conditions and rules of an asset inside it.
In this way, the process of issuing and publishing bonds can be done with more flexibility and customization. On the other hand, blockchain technology is able to play an important role in increasing customer awareness by simplifying the Anti-Money Laundering (AML) and KYC processes, as well as providing updates and analytics through a single portal to customers, transparency and efficiency.
Another advantage of digital assets is their divisibility and fractionalization. This type of assets can be divided into smaller units with a more affordable price and easier portability, and access to more liquidity and a wider range of investors.
In addition, the digital nature of assets reduces existing barriers to bond issuance and provides new opportunities for small players to enter the bond issuance field.
In general, with the help of blockchain, the life cycle of securities from the moment of publication to the distribution of profits among investors can be based on automatic processes.
In summary, it can be said that blockchain can bring the following advantages to stock exchanges and capital markets:
- Eliminating the single point of failure or the Achilles heel of centralized systems by establishing decentralized infrastructure
- Simplifying capital market affairs by facilitating processes, reducing costs and settlement times
- Digitization of processes and work cycles, reduction of operational risks caused by fraud, human errors and the behavior of the transaction party
- Digitization or tokenization of assets and financial instruments in order to facilitate their programmability, management and trading. By turning assets into tokens and having capabilities such as deficit creation, they can access wider markets, and this in turn leads to increased liquidity and lower cost of capital.
Defi field
Among the other benefits of blockchain is the decentralization of the financial sector and the emergence of a phenomenon called DeFi.
“Decentralized financial affairs” or “DeFi” is a new financial ecosystem in which, instead of relying on traditional and centralized financial systems, peer-to-peer and decentralized methods are used to perform and manage financial affairs.
In a short period of time, Defi has been able to provide users with all the capabilities of the traditional financial system, from borrowing and providing credit to depositing and generating income, in the context of an intertwined network of emerging financial tools and protocols.
Currently, 10 billion dollars of users’ assets have been deposited in various DeFi protocols, which indicates the increasing interest of users in this new field.
The foundation of the traditional financial system is based on centralized infrastructures, whose management and control is in the hands of central banks, financial institutions and a large number of intermediaries.
But the basis of decentralized finance or DeFi are computer codes and programs that are implemented in a decentralized infrastructure, including the Ethereum blockchain.
By deploying smart contracts in a blockchain network, the developers of the DeFi field can create their desired protocols and financial platforms and make them available to all users.
The milestone that DeFi has been able to achieve is that the assets traded in this area have applications far beyond conventional currencies or fiat money.
Decentralized exchanges, artificial assets, and instant loans are among the innovative applications of DeFi that have never before been available in the traditional financial world.
This change in the rules of the game in financial infrastructure has brought many advantages to both users and independent financial institutions.
Blockchain in energy and reliability
Actors active in the energy industry, from power plants to oil and gas companies, are gradually identifying the transformative capabilities of blockchain in their field of work.
Blockchain can be the beginning of inclusive transformation in the energy industry.
This long-standing industry, like other industries, has faced a wave of new technologies, and there is not a day that does not mention the tremendous impact of solar panels, electric cars, energy monitoring devices, etc. on this industry.
Blockchain networks, including Ethereum, meanwhile, with capabilities such as smart contracts, can be the basis for the growth of the energy sector.
Although “energy and reliability” is one of the fields that can greatly benefit from blockchain technology, this field has been neglected to some extent.
Various institutions such as the “World Economic Forum”, the Stanford Woods Institute for the Environment and several other international reference institutions have acknowledged by publishing joint research reports that blockchain technology has at least 65 concrete applications in various sectors of the environment, energy And it is reliable.
Among these applications, we can mention new business models for the energy market, real-time data management and the transfer, issuance and trading of carbon or renewable energy credits to the blockchain.
Distributed ledger technology can increase the efficiency of power plants by providing traceability of power grid equipment supply chain. In addition, blockchain is able to provide special solutions for how to distribute renewable energy.
More traditional sectors of the energy field, including oil and gas sector activists, can also benefit from blockchain organizational solutions.
Complex systems that host a multitude of actors also have special opportunities to use blockchain technology. For example, the oil market as one of the most booming markets in the world relies on a large and interwoven network of refineries, tankers, employees, governments and regulatory bodies.
This large network suffers from poor infrastructure and inefficient processes due to its long life. Therefore, large companies and holdings in the field of oil and gas are looking for the establishment of blockchain systems in order to reduce the costs and harmful environmental effects of their activities.
On the other hand, many oil and gas companies have serious concerns about protecting their privacy and trade secrets.
In this context, private blockchain networks can ensure the safe circulation of information among industry players with capabilities such as “licensed data” and “selective access”.
Private and consortium blockchains can meet the needs of energy industry players until privacy structures in public blockchains are improved.
The main advantages of using blockchain in the energy sector include:
- Reducing costs
- Increasing environmental reliability
- Promote transparency for energy industry stakeholders without violating privacy frameworks
Blockchain in the field of supply chain
Blockchain, with its undeniable transparency, can become the only referable reference among the various stakeholders of the supply chain.
Intelligent tracking and tracking of orders, goods and accurate calculation of delays with the help of blockchain can greatly reduce the time of sending and receiving shipments.
Among the advantages of blockchain for this area, we can mention the following:
Digitization
Most supply chains still rely on unsafe and inefficient physical processes.
By using blockchain, physical processes can be digitized based on smart contracts and productivity and efficiency can be increased.
Confirmation of authenticity
Manufacturers, retailers, and consumers all face many difficulties in verifying the authenticity of products.
These difficulties fuel the rise of fraud. However, the blockchain can link each product with a non-fungible token (NFT) at the zero moment of production, and then these tokens can be traded among the beneficiaries as a certificate of authenticity.
Distribution control
Many brands and retailers are unable to prevent products from being distributed outside of their own channels.
Blockchain, meanwhile, can use smart contracts to define specific rules to manage distribution channels and help manufacturers.
After sales service
Blockchain can facilitate the improvement of the quality of after-sales services by providing access to the information of each product in the context of a decentralized ledger.
Many retailers cannot comprehensively provide after-sales services to consumers and face problems in various stages including recall, warranty and product maintenance.
Transparency
Consumers always want access to information about raw materials used in products and production processes.
With the help of blockchain, all stakeholders in a supply chain can access the complete history of each product.
Proof of ownership
Another problem faced by consumers and end users is their inability to prove ownership of a product.
This problem increases theft and fraud. Blockchain can be a solution here as well.
Customers are simply able to hold the non-fungible tokens associated with each physical product and use them to prove their ownership.
Bug Bounty
Bug Bounty, or finding bugs in systems and networks and earning money by receiving rewards from that collection, is one of the categories that faces obstacles in the implementation and at the stage of bug approval and money transfer.
Bug Bounty has solved the problem of trust between the parties in the process of transferring information and money through a smart contract and digital signature of two or more parties on the blockchain platform.
These smart contracts are also used to sell knowledge, products and services.
Blockchain in the government affairs and governance
Governments and custodians of public affairs can use blockchain to free themselves from the torus of centralized and inefficient systems.
In fact, being more agile, safer and more cost-effective, blockchain networks come to the aid of the government to replace costly traditional systems.
In the digital government based on blockchain, it is possible to protect the data of the government, citizens and businesses on the basis of this new technology, prevent the waste of resources, prevent criminal actions for fraud and fraud, and promote trust and accountability.
In a blockchain-based government, individuals, businesses, and government institutions can share their resources in a secure and distributed ledger, relying on a cryptographic system.
This structure eliminates the weak points and protects the vital data of citizens.
A wide range of government duties in areas such as payments, registration of documents and real estate, civil registration, supply chains of basic goods, medical services, registration of companies and business units, elections and management of institutions can be performed based on distributed ledger technology and blockchain.
The chain of custody of legal and police evidence and documents has also recently been examined and even limited use in some countries, and based on that, all the documents and documents of a case, for example, criminal, are stored in the blockchain and made available to certain people, and the data, the input, after verification, is stored in the network.
Blockchain in the field of health and medical services
Activists in the field of medical and health services, from doctors to insurance organizations and pharmaceutical companies, have found that blockchain can be used in managing medical records, tracking drugs and medical devices.
During the last three decades, the health industry has experienced significant changes with the development of centralized data registration systems, information management requirements and digitization of medical records.
Although a very large amount of information is accumulated and processed in the field of health services, there is no structured two-way communication between people and institutions in this sector.
The lack of interactive cooperation among medical service systems at the individual and collective levels has caused problems that become troublesome in special situations, including these cases:
- When patients want to receive services from other healthcare providers.
- When managers of a clinical trial want to record and verify data on patients of a course.
- When pharmaceutical companies seek to verify and prove the authenticity of global market drugs.
The lack of safe sharing of data and medical records has caused patients to spend a lot of time and money on unnecessary medical services.
Additionally, in an emergency, doctors and other health professionals cannot access patient records and may prescribe inappropriate treatment.
In these cases, blockchain can help therapists in accessing patients’ medical records by creating a safe and transparent ledger.
In the pharmaceutical sector, secure monitoring of supply chains is necessary to prevent the distribution of counterfeit or illegal drugs.
These drugs simply endanger the health of a large group of patients and even the entire society. In addition, unlicensed drugs, in addition to causing interruption or failure in the treatment process of patients, may cause addiction or dependence in them.
In the meantime, blockchain can solve the problems caused by the transportation or illegal production of drugs and provide a single platform to track and ensure the storage conditions of drugs.
The “Enterprise Ethereum” network is one of the blockchains that can create a comprehensive transformation in the pharmaceutical industry with the help of smart contracts and interactive collaboration.
Blockchain in sports
Insurance services, legal services, sports, etc. are other areas in which blockchain is used.
Blockchain in sports and the purchase of tokens connected to clubs’ shares by fans is only one of the applications of blockchain in sports.
Token-based capitalization can reduce the bottom line cost for sponsors of sports clubs and promote empathy between fans, investors and managers of sports teams.
The $5 billion sports memorabilia industry is based on a mutual trust system to verify the authenticity of all items.
In the near future, relying on authentication based on artificial intelligence and blockchain, there will be no need for mutual trust. Blockchain networks can verify the authenticity of each piece of a memory with its own special solutions.
Blockchain and artificial intelligence
The data used in artificial intelligence must be kept transparently and without manipulation, and this is where the connection point of artificial intelligence is to the blockchain.
Unchangeable digital data and records are generated and stored on the blockchain platform, and in this way, users have access to the origin of the data, without the need for trust between the parties.
On the other hand, information security is provided by creating a transparent audit trail on the blockchain platform.
Through the blockchain, AI scientists have access to a decentralized network of data verifiers that can detect false data. Also, the probability of hacking and disclosure or loss of data in the blockchain network is reduced dramatically.
By creating these secure data networks, AI scientists easily exchange and use data with high security and in a short time.
Users of this field can rent their data to an artificial intelligence algorithm on the blockchain platform or sell them to advertising agencies of their choice.
Also, instead of renting or selling their data, they can keep it close to themselves and away from.
The eyes of companies or governments are guarded.
Blockchain in the future
As mentioned, blockchain technology can play an influential role in many fields.
However, many applications of blockchain are still in the idea stage, but considering the plans and contracts of large companies in the field of technology and innovation in the world, using the opportunities of the blockchain industry in the future can lead to a different world.