Non-Financial Use Cases of Blockchain Technology

Data & Research / 20.08.2020

Blockchain technology utilizes a distributed database to record transactions. It captures transactions, encrypts the data, and connects it in the form of unlimited blocks that form an interconnected chain. Its first and most useful use case was in cryptocurrency management, and it remains one of the most significant use cases of the technology.

However, other powerful applications have been popping up after this significant commercial success. The same way the technology records financial transactions, it can maintain other essential records such as health records, personal details, and shipment tracking. The technology is making a significant contribution to non-financial use cases, and most of them have been game-changers.

Blockchain Technology in Healthcare

The medical sector captures and stores terabytes of data every day. The data ranges from patient personal details, payment information, patient appointment dates, and clinical test results. Storing such data and keeping it safe is a challenge in the sector. Furthermore, patient information is private, and achieving high confidentiality levels may not be possible with the data on multiple locations.

Doctors need comprehensive details of patients for them to be able to treat them better. The information should include past ailments and treatments, allergies, among others. However, in most cases, patients only provide information about their current symptoms or condition. Blockchain technology solves these problems by making all the information available on one platform, therefore giving doctors access to all patient information. Moreover, the patient’s data is encrypted and can only be accessed by authorized persons, making it highly confidential.

Blockchain Technology in Government Services

Governments seek solutions to the seemingly endless bureaucratic procedures, build rapport with citizens, and create transparency in their operations. Blockchain technology is making such initiatives possible by facilitating seamless data exchange processes, storage, and registry. Data on the platform is held securely and remains accessible to the general public. Bureaucratic procedures such as the registration of assets, contract management, and voting can happen fast and with less complexity.

Government records maintained on the distributed ledgers are easy to manage and access when needed. Furthermore, auditing procedures become more comfortable, and fraudulent activities in government processes become easy to detect. Blockchain would ensure compliance in various industries is monitored and audited in real-time. Regulated sectors can get timely notifications on change in regulation and act in accordance. The technology provides better delivery of services and at a cheaper cost by eliminating reliance on third parties.

Blockchain Technology in Insurance

The insurance sector holds tons of informational records on consumers and transactional data. The management of such data and information is critical since there is a lot of synchronization of information required. Therefore, the industry’s nature necessitates a system that securely stores the data in an orderly and unalterable manner. Further, the system should make information about a particular consumer available on request.

Blockchain technology provides such a system and can simplify information management and retrieval processes. Processes such as claims registration and assessment, contract signing, records maintenance and management, premiums paid, and compensation become simplified.

Claims assessment requires thorough verification, and blockchain can help verify claims without unnecessary duplication and associated costs. Contract tracing becomes easy since there is less paperwork, and digital proof of insurance is readily available.

Multinational policies are easy to manage through the distributed ledger, and their applications can get verified automatically.

Blockchain Technology in Identity Management and Authentication

The centralization of systems holding sensitive personal data creates a perfect target for hackers. Fortunately, blockchain technology comes with a decentralized and encrypted data storage system. The feature makes the technology an ideal solution for a variety of non-financial applications. Individuals can have better control of their information in terms of what gets shared and with whom. Sensitive data is only possible to obtain directly from the individuals. Authentication procedures for credit cards and other facilities also can happen confidentially.

Blockchain Technology in the Manufacturing Industry

Supply chain management is a significant sector in the manufacturing industry. The sector requires high-level transparency and is characteristic of transactional information and numerical data. 

Blockchain technology can provide a manageable way to handle transaction processing and information storage. Deliveries can be easy to trace with information such as the item origin, movement, certifications, quality, and the overall history of the transaction logged into ledgers. It reduces paperwork and improves transparency in the supply chain.

Manufacturers can also significantly cut the costs associated with traditional bookkeeping.

Blockchain and Telecommunication

The telecommunication industry handles tons of data regarding individual persons, government, and private entities. 

It requires high-degree security to maintain confidentiality and prevent fraud. Blockchain becomes a useful technology, given that it is fraud protected by nature.

Blockchain combines security and transparency. Though transparent, information remains confidential, as it is only accessible in an encrypted form. The data is decentralized and can’t get compromised due to the nature of the storage blocks. The 5G technology currently under development can also integrate blockchain technology for a better and cheaper operation to both the users and the providers.

Final Word

Blockchain application in the non-financial sector promises significant positive transformations. Ideas for its use are coming up every day, and it is proving beneficial, especially in mass data management. Non-financial sectors of blockchain such as manufacturing, insurance, and healthcare are critical in every country, and therefore, the technology adoption could reach global adoption. Applications in healthcare could be even more significant in the future compared to the financial aspects. 

Blockchain technology is providing solutions for management and operational problems to both the private and public sectors. Essential national processes such as voting can happen with less time and zero irregularities. Moreover, transparency and security are becoming the core drivers of primary private and public operations. As a result, a platform that guarantees these two elements will continue being desirable to consumers and investors.

After realizing the setbacks of centralization in the financial industry, Carol has dedicated her career to apprise everyone on the benefits of blockchain technology. When she is not writing, she’s probably somewhere in the park reading a book.