Use cases of blockchain technology in the business framework

Blockchain technology has emerged as a disruptive innovation with the potential to transform numerous sectors of the economy. Although initially popularized through cryptocurrencies, its applicability extends far beyond financial transactions. We are going to see how blockchain technology is used in the business framework and we will analyze specific use cases in the banking, healthcare, logistics, retail and public sectors.

How blockchain technology is used in the business framework:

Blockchain technology, essentially a distributed and secure database, offers a number of benefits that are highly attractive to companies. These include transparency, immutability, security and the elimination of intermediaries in transactions. In the business setting, blockchain technology is used in various areas, such as supply chain management, identity management, intellectual property protection, and improving operational efficiency.

Use of blockchain technology in the banking sector

The banking sector has been one of the first to adopt blockchain technology. Through the use of smart contracts and immutable records, security and efficiency in financial transactions have been improved. In addition, blockchain technology allows the creation of faster and cheaper payment systems, facilitates identity verification and reduces fraud and money laundering. One Pay FX is the name of the service for international transfers implemented by Banco Santander that uses Blockchain technology to increase their speed. With the launch of the service, Santander became the first bank to implement a service of this type for retail customers in several countries. Each country offers customers different payment options depending on the market. One Pay FX uses xCurrent, a Blockchain-based technology owned by California-based Ripple. Ripple created xCurrent for banks as an open and neutral protocol using the Interledger Protocol (ILP).

Use of blockchain technology in the healthcare sector

In the healthcare sector, blockchain technology offers solutions to issues related to medical data privacy, secure information exchange between healthcare providers, and pharmaceutical product traceability. By employing a blockchain network, patient data can be stored securely, allowing individuals to have greater control over their personal information and providers to access accurate and up-to-date medical records. Novartis, one of the largest multinationals in the pharmaceutical industry, is experimenting with technology to identify these counterfeits, in addition to even tracking the temperature in real time through IoT, making this information transparent to any member of the supply chain.

Use of blockchain technology in the logistics sector

In the logistics sector, blockchain technology has become a powerful tool to improve the traceability and efficiency of supply chains. By immutably recording each stage of the process, from production to final delivery, blockchain technology enables verification of product authenticity and optimization of delivery times. This is especially useful in industries such as food, where traceability is crucial to ensure food safety. From the collaboration between IBM and Maersk arises TradeLens, a technological platform launched in 2018, with the aim of exploiting the potential of Blockchain in marine logistics. It offers a more open, reliable, transparent and secure way to conduct business operations. TradeLens is supported by leading carriers covering over 60% of global containerized trade.

Use of blockchain technology in the retail sector

In the retail sector, blockchain technology offers benefits such as product authentication, supply chain management, and improving customer experience. By using blockchain records, retailers can ensure the authenticity of products, which helps combat counterfeiting and build consumer trust. Additionally, blockchain technology enables more efficient management of the supply chain, from production to sale, by tracking and verifying every step of the process. This helps reduce costs, improve product quality and speed up delivery times. The LVMH group, owner of brands such as Louis Vuitton or Cristian Dior, has launched, in collaboration with Microsoft, developed the AURA platform. This platform was created with the objective of communicating information about authenticity, responsible sourcing and sustainability in a secure digital format. The main idea is to provide consumers with a high level of transparency and traceability throughout the life cycle of a product.

Use of blockchain technology in the public sector

The public sector is also exploring the potential of blockchain technology to improve efficiency and transparency in its operations. By using immutable, decentralized ledgers, governments can ensure data security, reduce corruption, and facilitate traceability of public resources. Some use cases include electronic voting, digital identity management, certificate issuance, and public records management. Blockchain technology allows for greater citizen participation and greater trust in public institutions. Estonia, which is already a leader in political technology with its e-residency program, an electronic identity platform that allows foreigners to do business and access government services.