As crypto gains popularity worldwide, more and more use cases have been discovered. There are thousands of use cases of crypto projects built on the blockchain. The blockchain serves as a ledger of transactions that hold cryptocurrencies. Blockchain technology became very popular in 2019 when Bitcoin was adopted. Founders like Daniel Pessin have built projects powered by blockchain technology.
One of the major controversies about cryptocurrency is that it isn’t “real money”. I understand this can be a concern because some crypto projects do not show a real-life use case that people can understand.
However, blockchain technology features decentralization, transparency, and automation. These real-life use cases solve problems in various industries, from the government and finance to business. In this article, we analyze use cases adopted by crypto projects worldwide.
Let’s dive in!
Use Cases In Finance Industry
The finance industry has challenges that require technology to solve. Many solutions have been created, but some are still pretty confusing. Blockchain in finance is very promising and can provide better solutions to these challenges. But how can crypto projects solve the problems in the finance industry?
Here’s what you should know.
Cross-border Payments
Financial services have a major challenge of slow payment, lack of transparency and security concerns. However, with the help of blockchain, cross-border payments are supported by networks like Ripple (XRP), Stellar, and Nano – payments are made quickly.
Digitization occurs, which leads to an increase in liquidity and lowers the cost of capital. On the other hand, automation provides an avenue for a limited number of intermediaries for transactions. As a result, commercial banks are highly favored by cheaper and more efficient international payments.
Trade Finance
Blockchain technology possesses the ability to make trade finance stress-free. Businesses can now deal with each other beyond various geographical boundaries. Ethereum (ETH), Binance Coin (BNB), and Bitcoin (BTC) have provided solutions to this challenge.
By making use of this technology for trade finance, financial services can:
- Gain more insights into client transactions by tracking all steps end-to-end.
- Reduce costs by digitizing the slow traditional processes.
- Speed trading cycles and expand access to global markets.
Insurance
Financial services can operate insurance on the blockchain through Ethereum’s smart contracts and decentralized applications (dApps). Now, this is a positive change to insurance.
Smart contracts allow insurers to provide claims securely. In addition, these contracts are recorded and validated on the blockchain – an insurer cannot make invalid claims.
For example, a car insurance company has several processes to validate an insurer’s claims. However, insurance policies such as smart contracts automatically execute claims and process actions – a less time-consuming process.
Use Cases In the Business Industry
The potential blockchain provides for business is endless. Daniel Pessin believes that creating blockchain-centered infrastructures can lead to successful crypto projects. Businesses adopt them to have a workflow with great efficiency and less risk. So how do you identify where to start?
Here’s what you should know.
Healthcare
Information in the healthcare sector can be quite large, ranging from gender, age, medical history and vital signs. So the idea of having health-based crypto projects seems impossible, right? But it is possible.
Blockchain developers have created tokens for this purpose; some of these tokens are MediBloc and SOLVE. Medical tokens can be linked to a patient’s health record. The tokens store the data and are focused on easing payment, thereby helping patients.
Crypto projects based on health care solutions enable secure medical data management and efficient tracking. Therefore, the adoption could significantly advance medical discoveries in the world.
Real Estate
Faster transactions are provided on the blockchain in the real estate industry. For example, a middle-class family will move several times in their lifetime before settling permanently. Blockchain could be of great use here, making sales of homes easier. In addition, it offers transparency through faster verification of finances and reduction of fraud.
Challenges such as slow transactions, management issues, and disputes between sellers and buyers are prevalent in the real estate industry. Implementing crypto projects provides a solution to these problems. In addition, some crypto projects create an innovative approach to real estates, such as digitized contracts and ownership of hard-to-share assets.
Gaming
The CEO of Digital Mind Inc., Daniel Pessin, has years of experience and understands the good and bad of the business world. Developers have created blockchain games to fill the loopholes such as payment problems and imbalanced gameplay. Players can now enjoy games where they have real ownership of assets.
A popular crypto game, in this case, is CryptoKitties. Players collect and breed digital cats; the Ethereum blockchain handles transactions. CryptoKitties served as a pioneer; developers have created better games like The Sandbox and Axie Infinity.
Gaming has a demand for unique items; this is where NFTs are implemented. The tokens used in the video games involve art, collectibles and forms of utility for players.
Final Thoughts
The function of crypto is not only as a medium of exchange and store of value; cryptocurrencies are known for their market value. Moreover, crypto projects ease financial transactions and contracts on a decentralized platform. Therefore, there is no need for intermediaries such as a bank or court.
You don’t need to have a big company benefit from blockchain technology. Instead, enjoy these benefits through financial services and trading. Blockchain is here to stay, and more industries are finding use cases for it – just as Daniel Pessin is proving with Digital Mind Inc.
