In addition to Bitcoin, these 6 major blockchain applications are also not to be missed

We are hearing about blockchain everywhere, blockchain this, blockchain that. But what are the real-world applications of blockchain?

Here are six blockchain applications currently in use:

1. Decentralized Exchange

Traditionally, exchanges have required some kind of middleman, such as a broker, to match buyers and sellers. However, with blockchain, third-party arbitration becomes a thing of the past. The matching and execution of buy and sell orders is done through an escrow system, with the network acting as a validator.

For example, Counterparty is a decentralized exchange that allows users to create and trade their own digital assets. In this market, orders are public, matched with demand and bids, and then executed without the involvement of middlemen. When the buyer and seller reach an agreement, this system of escrow combined with signature can release funds and assets.

2. Distributed cloud storage

Blockchain data storage will be a huge disruptor in a short period of time (3-5 years).

Current cloud storage services are centralized - so you, your users, must place your trust in a single storage service provider. 'They' control all of your online assets.

However, if blockchain is used, these data stores can become decentralized. For example, Storj is a cloud storage service that is currently in beta testing and uses a blockchain network to improve security and reduce dependence on service providers. In addition, you can rent out your excess storage capacity, similar to Airbnb style, which opens up new markets.

Anyone on the internet can store your data for a pre-agreed price. However, hashing and storing your data in multiple locations is key to keeping it safe.

Two startups, Storj.io and Factom, are exploring this idea: Encrypted data can be sent to a network that can easily track basic metadata.

3. Digital identity

Imagine never having to worry about your digital identity again. Security has always been a big issue in this world.

Security currently costs the industry an estimated $18.5 billion annually, according to a report released Thursday by Distil Networks.

This means that for every $3 spent, $1 is spent preventing ad fraud.

Blockchain technology can track and manage digital identities securely and efficiently, enabling seamless login and reducing fraud.

From banking, healthcare, national security, citizenship documents to online retail, the processes of identity verification and authorization are intricately intertwined with business and culture.

Do you remember what happened to Target, the US retail giant?

Target's data breach was far more extensive than previously reported: The company says information of around 7 million users, such as names, addresses, phone numbers and email addresses, was compromised in the hack.

Incidents like hacked databases and account breaches are becoming more frequent in our technologically advanced society, but innovation in identity security is not keeping pace.

Blockchain technology provides a solution to many digital identity problems, allowing identity verification to be performed in an indisputable, unchangeable and secure manner. Current identity verification methods use problematic password-based systems, where the exchange and storage of secret information is performed on insecure systems.

Blockchain-based authentication systems are based on indisputable identity verification, using digital signatures based on public key cryptography. In blockchain authentication, the only check performed is whether the transaction is signed by the correct private key. It can be inferred that whoever has access to the private key is the owner, regardless of the owner's exact identity.

Blockchain identity use cases

Blockchain technology can be applied to identity applications in the following areas:

1. Digital identity

2. passport

3. e-Residency

4. Birth certificate

5. Marriage Certificate

6. Proof of identity

7. Online Account Login

ShoCard is a digital identity that protects user privacy and is as easy to use as showing a driver's license. It is a security optimization for mobile phones and its security is completely trustworthy for banks.

4. Supply Chain Communications and Proof of Provenance

Most of the things we buy are not manufactured by one entity, but rather by a variety of suppliers who sell components that come together into one company to assemble and then bring the final product to market.

If one of the components breaks, the brand that sold the product bears the brunt of the consequences – it bears most of the responsibility for the supply chain.

But what if a company could proactively provide a digital, permanent, auditable record — one that could show stakeholders the status of a product at every stage of value addition? Ideas being developed by companies like Provenance.Org and SkuChain aim to do just that.

5. Smart Contracts

What if you could lower your mortgage rate and make it easier to update your will?

The era of smart contracts is coming fast, but what are smart contracts?

These are legally binding, programmable, digital contracts on the blockchain. These contracts are smart because they are automated and self-executing. All a developer has to do is implement the legal contract into various variables and statements - these can use the Bitcoin network as a 'third party enforcer' rather than trusting a single centralized authority to release funds.

For example, if two people want to exchange $100 at some point in the future when certain pre-defined conditions are met, then the conditions, payment, and details of the parties can all be programmed into a smart contract. Once the defined conditions are met, the funds are released and sent to the correct recipient according to the terms.

Ethereum founder Vitalik Buterin explained:

“Smart contracts solve the problem of trusting an intermediary between parties to an agreement, whether it’s transferring an asset, like gold, or enforcing a decision between two parties.”

Platforms like Ethereum are making smart contracts a reality, and because data stored on the blockchain cannot be tampered with, basic contracts like marriage are already recorded in code.

Fair Trade Music

One type of contract is particularly worth exploring: music royalties. British singer Imogen Heap is seeking to change how musicians license and get paid for their songs.

6. Digital voting

Opponents of digital voting say the biggest obstacle to online voting is security .

Using blockchain, voters can check that their votes have been successfully counted while also keeping their votes anonymous to others. In 2014, the Danish Liberal Alliance became the first organization to use blockchain for voting. In contrast, voter turnout in the United States remains low, and distributed digital voting may provide a way to attract those who are reluctant to vote.

Last year, a team accredited to observe Estonia’s 2013 municipal elections — the only country to run large-scale online elections — revealed that they watched election officials download key software over unsecured internet connections, enter PINs and secrets on unsecured computers, and prepare election software. Norway also canceled trials of electronic voting systems in local and national elections, saying voters were concerned that having their votes made public could undermine the democratic process.

My hope is that blockchain will soon become the gold standard for all countries around the world. It is time for our systems and governments to become more transparent.

in conclusion

The future potential of blockchain applications is still in flux. The next 2-3 years will be all about testing. Regardless of which application will first have global scale, the bottom line is this: blockchain technology is here and is transforming how our society functions.