As an alternative to conventional contracts, the “Blockchain,” as it is so fondly called and capitalized, is providing brands with another focus: A method to do business via open-source or private, partially restricted networks in industries such as finance, supply chain management, consumer products, manufacturing, healthcare, and in the public sector.
With its unique computational algorithms, blockchain technology cements trust, immutability of records, and transparency for the contract parties.
If You Think The Blockchain and Cryptocurrency Are the Same, You’re Wrong
The Blockchain first went public with the rise of cryptocurrencies. Therefore, many associate the Blockchain strictly with crypto. Such narrow understanding diminishes its potential for brands.
The biggest obstacle to understanding why the Blockchain and crypto are often confused can be attributed to the label “cryptocurrency,” which pays reference to traditional money, or fiat currency. This association affects the cryptocurrency definition, driving people to believe that the ways in which cryptocurrencies store value is identical to the money we currently use in circulation, believing it to be its only function.
While partly accurate, as Bitcoin payments for goods and services have proven to be conducive for brands, cryptocurrencies generally, also contain a specifically stored value that’s based on “proof of work” (PoW), or solving complex cryptographic computational problems. The Blockchain is, in this sense, very similar to cryptocurrency as it offers to execute transactions on distributed computer networks via decentralized applications (dApps) and smart contracts.
Here are some of the typical business models that have been widely used for dApp development:
Increasing Your Internal Payment Infrastructure to Global Customers
You can use smart contracts to build an infrastructure for sending money worldwide, avoiding fees and executing payments in real-time. Such dApps can include escrow systems and time-locked transfers.
For example, a decentralized eBay can be built on the blockchain to support transparency in the exchange between the buyer and the seller.
“Smart” or Perhaps “Not as Dumb” Contracts
The automatic execution of smart contracts made in accordance with the rules set by the participants means that all these industries can be transformed with a more reliable model of taking action upon the previously set condition. Bethereum, for example, lets you bet against friends and other social users without a bookmaker.
Ensuring HIPAA-Compliant Measures In Healthcare
When you put patient records and sensitive personal data such as medical histories and payment records into the game, mistakes can be costly, sometimes even life-threatening. A lot of that can be avoided by dApp development that focuses on keeping a clear audit trail and maintaining patient data uniformly across the various databases or by simply keeping a unique interoperable database.
Protecting Your Digital Identity
According to the principle of identifying participants on the basis of the device they are using to access the distributed database, smart contracts can be used for identity verification and fraud prevention. Visa is working together with IBM on Visa B2B Connect, a digital identity system for secure trans-border payments with tokenized banking details. IBM and Blockchain protocol Stellar, are in a tie up, too.
Increasing Financial Institution Efficiency
Some forward-looking banks and financial institutions have invested in creating dApps for faster and more secure payment settlement and clearing. JP Morgan is set to launch a digital coin, JPM coin, which will be used within the JP Morgan network of clients for instant transfers.