Applications of Blockchain and Cryptocurrencies
Cryptocurrencies are widely popular as trading assets. However, when used with blockchain beyond their use as digital currencies, cryptocurrencies offers several innovative uses in various sectors including housing, energy, and personal finance. So, let’s get acquainted with five revolutionary applications of Blockchain and Cryptocurrencies.
1) Cryptocurrencies bolster cost-effective global money transfers
Usually, for customers, the cost of bank-to-bank money transfers depends on a few factors, such as costly transaction charges, exchange rates and the constraints of geography.
As per a recent study by the World Bank, the average cost of making a single bank transaction for a private client can go up to 5.5 percent of the total transfer amount. Also, cross-border payments can take more than five working days.
While the state of money transfer is the same, some companies are utilizing digital tokens to expedite the process along with reducing costs.
For instance, Ripple, a California based company, has gathered a $300 million fund. It will use these funds to pay companies to use XRP for cross-border money transfers.
Recently, the company announced the introduction of its new programme called Xspring. With this programme, it will pay developers to write code software with an aim to using XRP.
This year, several established money transfer companies, such as MoneyGram and Western Union, announced the use of pilot programmes using XRP.
2) Blockchain-based voting to combat electoral fraud
Although cryptocurrencies like Litecoin and Ethereum may have succeeded in changing our perception about money, their impact has not reached in other, less obvious, sectors such as non–profit organizations striving to protect and increase voter participation in democracies.
For instance, a new startup called Sovereign, maintained by a group named Democracy Earth, introduced the use of the blockchain technology to provide users with more transparency and flexibility in how they cast their votes. People are calling it a kind of ‘liquid democracy.’ It allows users to highlight their views on particular issues and then cast their vote to someone they think is eligible. This blockchain based voting application uses blockchain platform like Ethereum to generate a defined number of tokens used as ‘votes.’
These are then allotted to registered participants who can cast their vote as part of institutions on a network of, for instance, political parties or organizations run as co-operatives.
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3) Blockchain in Green Energy Trading
A notable benefit of distributed, decentralized ledger technologies is present in Brooklyn, New York, where a project is collaborating with numerous homeowners to install solar panels as a section of a standalone network.
Technology startup LO3 Energy runs the Brooklyn Microgrid. It allows residents to become self-sufficient for their energy production. Additionally, it also enables them access to a trading platform where they can trade their extra electricity to buyers in the group.
Currently, Brooklyn Microgrid has around 50 participants in the group. However, its modest start is only a part of a larger concept that aims to form a countrywide P2P energy trading system using the blockchain technology.
Not only this but companies around the globe like LO3 Energy are developing new blockchain networks that will increase the adoption of decentralized energy systems.
In Australia last year, Power Ledger launched a blockchain-based electricity trading market for a housing community in Perth.
In Bangladesh, where the majority of the population don’t have access to power, ME SOLshare is providing rooftop solar panel systems to create a trading network.
The idea is to create a network where consumers can trade their extra electricity, which will be purchased by businesses and homeowners in small amounts through a mobile phone.
4) Blockchain technology helping the homeless
With $5 million awarded by the Mayor’s Challenge programme and sponsored by Bloomberg Philanthropies, Austin in Texas is working on a new pilot blockchain platform which will gather and confirm the identification and other necessary records of homeless people.
Currently, in Austin, there are around 2,000 homeless people with numerous residents in different stages of access to hollow housing.
Organizers expect the city will be able to replace paper documents like social security cards, which can get lost or damaged, with electronic encrypted documents.
The MyPass programme allows social services workers in the field to use their smartphone to confirm the identity and details of a person without requiring him to come to the office.
MyPass also enhances the ability to provide more transparent, integrated and comprehensive donations.
The blockchain-powered records will validate the integrity and store credentials of earlier accepted aid, as well as details of physical and mental care.
These were only a bunch of applications of Blockchain and Cryptocurrencies, and it’s the surface we scratched. The possibilities offered by blockchain and cryptos are yet to be explored. For instance, applications of blockchain and cryptocurrencies are finding their use in Healthcare, Charity, Real-Estate, Automotive, etc. However, thorough research and due diligence are musts.
If you want to know more about the applications of blockchain and cryptocurrencies, or thinking of adopting this relatively new technology to upgrade your business and stand along industry-leaders, do reach us for a free-of-cost consultation.