Blockchain Applications beyond Cryptocurrency: 5 Key Real World Use Cases

When blockchain was introduced to the masses with the launch of Bitcoin in 2009, its application was confined to decentralized currency exchange and the finance sector for secure digital transactions. For years, a large group of people could not perceive blockchain beyond cryptocurrency. It was mostly recognized as an innovative technology in the finance world.  

With time, blockchain technology has evolved, and its capabilities are recognized by enterprises and organizations globally. Be it manufacturing, healthcare, supply chain and logistics, digital identity management, or carbon credits management, blockchain is integrated in all industries and sectors.

Despite blockchain’s capability to build a transparent, secure, trustworthy, and user-centric digital ecosystem, a lack of awareness prevents organizations, especially SMBs, from realizing its full potential.  

This blog sheds light on the top five real-world use cases of blockchain beyond cryptocurrency. Let’s explore in detail how it improves ROI across industries.

Blockchain Systems Digital Identity & Authentication

Digital Identity– be it a person, an organization, or a digital asset is a must to uniquely identify an individual or entity, and also provide them with authenticity. It includes details like name, ID, bio, descriptions, credentials, and other information that uniquely define the entity.  

While it refers to individual information stored in the database, it is critical in most cases, especially when the data is sensitive, such as in healthcare, enterprise data, government agencies, and other similar contexts.  

So, the traditional process of data storage and verification by central authorities needs a replacement. The need for robots, transparent and secure systems built using reliable technologies like blockchain, is more than ever before. Let’s understand how it helps secure the digital identity of individuals. 

Blockchain to Build Self-Sovereign Identity (SSI) Model 

Blockchain technology utilizes the SSI model, a decentralized identity model that enables individuals to own, control, and securely share their identity without depending on intermediaries. Here is how it works—

• Issuer: It can be a government, financial institution, bank, university, or company that offers a digital identity or verified digital document to an individual. 
• Identity Holder: It represents an individual or an entity that holds the digital identity and stores it in the digital wallet.
• Verifier: These are organizations or individuals that verify an individual’s digital identity. It can be an audit company, a document verifier at the workplace, or an authority at the university verifying documents.  

Microsoft Decentralized Digital Identity Implementation

Microsoft is one of the leading enterprises that uses blockchain for decentralized digital identity. A part of the Entra product suite, Verified ID by Microsoft is built on open standards like Decentralized Identifiers (DID) and Verifiable Credentials (VC). Here is how it works–

• Organizations can issue digital credentials saved securely on blockchain networks. It includes employee IDs, university certificates, or licenses.
• Users can store them securely in their Microsoft Authenticator app or digital wallet.
• An organization or individual who needs to verify identity can access the cryptographic proofs without the need to share personal data.

Tokenization of Assets 

One of the most significant and wide applications of blockchain is Asset tokenization. It involves converting real-world assets such as real estate, stocks, artworks, music, writings, and carbon credits into digital tokens stored on the blockchain.  Each token represents ownership of the asset that can be stored, shared, or traded securely on a blockchain platform. 

Latest Trends of Asset Tokenization

According to a 2023 survey report among 750 CFOs at major companies worldwide, about 12% of real estate firms used tokenization. Approximately 20% of respondents shared that their firm was in early-stage adoption of asset tokenization, while 26 percent were already using blockchain technology in pilot projects.  The real estate is expected to become the largest type of tokenized asset in 2030, covering 30% of the overall market. 

Another report predicts that assets and deposits, as well as bonds, loans, and ETFs are expected to be the most likely financial products to see tokenization by 2030.

Let’s explore how asset tokenization actually works–

How Asset Tokenization Works? 

Here’s a breakdown of how asset tokenization works-  

• Select the real-world asset: Choose the real-world asset, like art, real estate property, carbon credits, documents, etc, that you wish to convert into a token.  
• Set a Value for the Asset: The value of the asset is defined in accordance with the legal compliance and guidance. 
• Create a Token: The asset value is divided into digital tokens. For example, a token can represent $2500 value of a real estate. Each token represents fractional ownership.  
• Store on Blockchain: Each token is stored on the blockchain, such as Ethereum, Polygon, or Solana, and managed using smart contracts.
• Trading and Management of Tokens: Sellers and investors utilize digital wallets and blockchain platforms to store, manage, and trade tokens globally, eliminating the need for intermediaries. The ownership of a token-based asset is recorded on the blockchain and is immutable. 

Automation in the Manufacturing Industry

The manufacturing industry is complex as it involves multiple operations, transactions, and dependencies on intermediaries ranging from the procurement of raw materials to logistics processes for transporting goods and payments to various parties. It also encompasses the management of multiple sites, like manufacturing sites, warehouses, and distribution sites. Traditional manufacturing systems relied on manual verification as well as management of data and transactions using centralized systems. This led to–

• Efficiency in operations
• Lack of transparency
• Delays in processing 
• Working in silos as a department or business partners

The integration of blockchain with manufacturing systems helps automate processes, thus adding transparency and trust in the ecosystem. Let’s discuss in detail how blockchain helps support automation-  

Smart Contracts for Automation of Manufacturing Workflows

Smart contracts execute automatically when the predefined conditions written in code are met. It helps in–

• Verification of orders
• Payments to stakeholders and partners
• Management of stocks in inventory

Here is the workflow–

Once the order is delivered, it is verified by the blockchain system, the payment is released automatically, and the stock value in inventory is updated.  

Unlock your business potential by integrating blockchain technology with your current operations. Connect with PrimaFelicitas’s blockchain expert to deploy custom smart contracts or full-stack blockchain development. 

The team can help you identify how blockchain technology can be used in your business environment. Partner with us to turn your vision into a practical roadmap for success.

Siemens- Implementation of Blockchain in manufacturing by Siemens 

Siemens, a global leader in industrial automation, uses blockchain and smart contracts to streamline manufacturing operations across supply chains. In fact,  Siemens has collaborated with blockchain platforms such as Hyperledger Fabric and Energy Web Foundation for decentralized automation and supply chain management.

Here is how it is integrated in the ecosystem–

• It uses smart contracts to digitize and automate all transactions occurring within complex manufacturing networks.
• The integration of blockchain with IoT enables sensors and machines to send verified data to the triggering points automatically.  
• Shipment updates, payments, and compliance checks are executed autonomously using data recorded on blockchain and rules defined through smart contracts

The use of blockchain systems by Siemens helps–

• Reduces manual paperwork and efforts.
• Enhances supply chain transparency
• Supports accountability
• Speeds up settlements among manufacturing and supply chain partners.

PrimaFelicitas is a well-known name in the market, serving worldwide consumers by delivering projects based on Web 3.0 technologies such as AI, Machine Learning, IoT, and Blockchain. Our expert team will serve you by turning your great ideas into innovative solutions.

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Traceability & Trackability in Supply Chain

Blockchain systems enhance the Traceability and trackability across the supply chain industry by creating a tamper-proof record of data, transactions, and the movement of goods.  The decentralized shared system ensures that everyone associated with the supply chain network gets access to real-time visibility of all activities. This helps ensure the quality of material and product received by end-users. Additionally, it helps add transparency and trust to the system, building trust among the partners. Let’s discuss step by step how it works–

• The raw materials and products are recorded on the blockchain with a unique identity. It contains details such as the date of transportation and delivery, logistics used, information about raw materials, and personnel associated with the operations.  
• Each movement of raw materials and products from the warehouse to the end user is recorded immutably on the public ledger. 
• Smart contracts automate alerts in the event of transportation delays, inventory shortages, or in case of quality issues.
• The quality of the product is automatically recorded and verified on the blockchain. Thus, any participant can cross-verify the quality of the product using the recorded data.  
• Smart contracts ensure that only authentic and certified material and products are used for transportation and delivery. The log is maintained at all spots and sites, usually using QR codes.

Healthcare Sensitive Data Management 

The healthcare industry generates a massive volume of sensitive data daily. It includes patients’ records, medical conditions, prescriptions, clinical trials, and insurance details. Traditional systems faced challenges such as–

• Changes in unauthorised access
• Risk of data breach
• Inefficiency in data sharing 

Blockchain provides a secure, transparent, and patient-centric platform for managing sensitive healthcare data.  

How Blockchain Ensures Secure Management of Healthcare Data? 

Blockchain systems in healthcare do not store the original sensitive data on the chain. Instead, the medical data is encrypted and then stored on-chain. Each time the file is shared on the network, it is signed using a cryptographic algorithm and recorded on the public ledger. Here is the step-by-step procedure on how it works–

Patient-Centric Data Control

The patient who stores data on the blockchain gets access to the private key. This enables them to control who can access the medical record. The access rights are managed using smart contracts. Let’s look at some of its features 

• Permissionless Medical Data Sharing: Data can be shared across the network without passing through multiple intermediaries to grant permission. 
• Interoperability: Patients, hospitals, labs, and insurance companies can exchange medical data securely with pre-approved consent.
• Immutable Audit Trails: Access, edit, or any modification to data is recorded and time-stamped on the blockchain platform.  
• Permanent Logs: All activities, including diagnosis, reports, and insurance claims, are permanently logged on the blockchain.  
• Regulatory Verifications: Audits and regulatory bodies can perform their auditing activities for authentication without exposing the sensitive data.  
• Smart Contracts for Automation: It automates processes like medical billing, approval of insurance claims, and reaching a consensus among two or more parties. 

Whether planning or executing, PrimaFelicitas offers end-to-end custom blockchain development services to businesses and organizations from diverse sectors. Our team holds relevant experience in designing and deploying custom digital solutions that integrate seamlessly with the existing ecosystem of the organization and drive real ROI.  

Final Words! 

The evolution of blockchain beyond cryptocurrency, to its real-world applications in all industries, is a revolution in the digital world. Today, it is viewed as foundational technology that adds transparency, trust, and automation at all levels in the organization. It redefines how businesses handle and manage sensitive data, transactions, and all operations.  

Whether it is adding integrity in the supply chain, securely recording digital identity, tokenization of assets, or sensitive data management in healthcare sectors, blockchain helps deliver measurable ROI at organizations.  

As organizations and businesses from around the globe continue to embrace decentralization, it is time to explore and implement blockchain technology.
Get in touch with the PrimaFelicitas team to design secure, scalable, and ROI-driven blockchain solutions.