Blockchain applications

In the previous step, you examined how blockchain technology could impact society.

Now, let’s investigate particular ‘use cases’ or applications that showcase the adaptability and transformative capabilities of blockchain. As you engage with the material, consider your responses from the discussion. Do you still believe the applications you chose are the most crucial, or does the following alter your perspective?

Finance and banking

Cryptocurrencies, such as Bitcoin, are the most popular application of blockchain, focusing on the execution of secure cross-border transactions. Several businesses rely on sending cash to multiple parties. Here, blockchain can automate and reduce the processing costs of these transactions. It can improve the traceability of funds and provide alternative markets for lending and borrowing funds.

Non-fungible tokens (NFTs)

This is becoming a very popular blockchain application among crypto-currencies. NFTs are digital assets that can be sold such as music, art, pictures, videos, and online game elements. Retaining the copyright and controlling the use of these digital assets on the Internet has been challenging so far. By using blockchain, these assets can be uniquely identified and recorded on the blockchain to certify ownership and authenticity. The can prevent copying, substitution or subdivision. The blockchain can also be used to securely transfer ownership of NFTs, allowing trading and NFT markets to emerge.

Drones

Drones are crucial in smart cities, which are urban areas using technology to boost efficiency and residents’ quality of life. Blockchain plays a key role in securing and enhancing the reliability of drone operations in these cities. When drones collaborate on tasks like monitoring traffic or delivering packages, blockchain ensures secure and trustworthy transactions. It also verifies what are called ‘last-mile deliveries’, which is the journey of a package from the distribution centre to the customer.

Additionally, blockchain’s distributed consensus algorithms improve data quality, making drones more resilient to faults and security threats. Given the uncertainties in drone operations, blockchain provides traceability and verification, ensuring more reliable information for deploying this sensitive technology in cities.

Secure location-based services

Consider how our phones use GPS to determine our location. Sometimes, GPS isn’t very secure. Now, imagine devices communicating and figuring out locations without GPS. They could synchronise clocks and agree on the time, essentially creating a kind of secret code.

Enter blockchain, a secure way for devices to reach agreements. If affordable devices in cities communicate using this ‘secret code’ (thanks to blockchain), highly secure maps can be created. These maps can accurately track the location of things like products and vehicles without depending on GPS. It’s like establishing a technological system in the neighbourhood that’s dependable and trustworthy.

Digital voting

Traditional elections face challenges because once a person casts their vote, it’s tricky to ensure accurate counting. That’s where blockchain technology steps in. When votes are recorded on the blockchain, they become like highly secure puzzle pieces, resistant to tampering, ensuring a fair and accurate process. What’s more, blockchain doesn’t just make elections more secure; it also cuts costs by enabling remote voting, eliminating the need for expensive physical polling stations.

Next step

The next step invites you to translate your understanding into practice by creating an infographic about a blockchain application. Utilise the insights gained from exploring finance, NFTs, drones, secure location-based services, and digital voting to visually communicate your ideas with your fellow learners.