blockchain technology

Top 5 uses of blockchain technology you didn’t know about

With the advancement of tech and the internet, the term “blockchain” has become widely popular. Some emerging technologies like cryptocurrency, bitcoins and even NFTs have evolved from blockchain technology.

What is blockchain technology?

Before learning the best uses, let’s first learn what blockchain technology is. It is a ledger that records transactions in a digital format across a network of computers. It is popular because once a transaction has been entered and recorded in its database, it is impossible to alter or delete it.

Another important aspect of this technology is that it works in a chain system consisting of blocks that hold a certain number of transactions. Thus, it is named ‘blockchain technology.’ It further allows for transactions between two unknown parties with ease without the need for a central authority to govern it.

Thus, blockchain is a secure technology to record transactions transparently.

How does blockchain technology exactly work?

One must know how blockchain works to use it as an optimum resource. Blockchain technology, nowadays, is used in many different industries. Primarily, it allows cost and time-saving transactions with tight security.

When one uses blockchain technology to make a transaction, the technology records the details and proceeds. But, the data recorded serves as a digital database that can be checked but cannot be altered. As they consist of so many innumerable ledgers, this technology is also sometimes called ‘Distributed Ledger Technology (DIT).’

In business, blockchain technology ensures a secured and transparent transaction recorded in a digital database and allows room for decentralisation of authority. It can be used in financial transactions, supply chain management transactions, and further in digital transactions too.

Disadvantages of blockchain technology 

As with every developing technology, the blockchain system has some downfalls too. Some of them have been discussed below:

  • The large number of transactions done by users every minute from different parts of the world will lead to higher processing fees. Also, the transaction may take longer to be completed.
  • Although blockchain technology attempts to provide the most secure transactions, they have also been prone to cyberattacks and thefts. 
  • Blockchain technology is a bit complex in structure. Many times, it may be hard for a normal person to understand it at one time. Thus, it leads to a reduction in the consumer market of blockchain technology.
  • Blockchain technology is also depicting the energy of the environment. A large amount of energy is utilized to cope with such large networks and data, which is not good for nature in general.

Uses of blockchain technology 

There are many uses of blockchain technology. Though most commonly known is the use of cryptocurrency on the blockchain. Often people confuse these two terms meaning the same. But it is not. Cryptocurrency is a developed version of the blockchain, but both are very different in their jobs.

Besides the blockchain technology used as a cryptocurrency, blockchain can also be used in financial transactions, supply chain management systems, and many more.

Blockchain technology as a cryptocurrency

Blockchain has been the base for many technologies to evolve. One of them is cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.

Cryptocurrencies are generally currencies on a digital platform in a digital format. These currencies can be used to buy or transact over blockchain without centralization. The key fact for its popularity is that cryptocurrencies can operate independently and are decentralized as the blockchain.

Another feature offered by the cryptocurrency is the tokenization of assets. It allows a great opportunity to create digital products, which can be traded on virtual platforms like traditional assets in the common market. The idea of tokenization is to secure the ownership of that particular asset in exchange for digital currency on an independent and secured platform.

As these digital currencies are prone to cyberattacks, crypto hardware wallets are used. They are used to hold the private keys associated with your crypto account. There are also online crypto hardware wallets that can be accessed through the web or app. They are known as “cold storage” as they store the keys on any cloud storage or remote server which is not connected to the internet. 

You can thus access your crypto account from anywhere with the correct passphrase or recovery seed. There are many cryptocurrency wallets in the market, such as Ledger wallet, Trezor wallet, Metamask, Exodus, and many more. 

Other uses of blockchain technology 

Blockchain technology has many other uses other than cryptocurrency. Some of these have been discussed below: 

  • Financial transactions: Blockchain can be effectively used to deal with financial transactions which are secured and decentralized. Also, digital currencies and smart contracts are becoming extremely popular. It may be possible that our traditional centralized transaction form will soon be entirely replaced by blockchain.
  • Supply Chain Management: With new developments emerging in blockchain technology every day, it is also for the supply of goods. The technology can trace and track the movement of goods in transit throughout the journey allowing transparency of the entire process. Also, it becomes easier to calculate the parties’ accountability in bad circumstances.
  • Healthcare: Blockchain technology has made data handling easier for healthcare sectors. The distributed ledger network allows the information recorded to be shared easily. The healthcare industries use it to securely store patient data over the large network to be accessed when needed without worrying about handling so much information. It also helps in improving the overall healthcare experience in society.
  • Gaming and Virtual Reality: Another of the most popular uses of blockchain is its integration into gaming and virtual platforms. The gaming industries are working on creating advanced virtual worlds for gamers. The virtual platform would be a great marketplace for gamers to own or trade in-game assets or virtual real estate. Also, the concept of NFTs (Non-Fungible Tokens) is emerging, which can be used to acquire digital collectibles, game assets, or even customised virtual reality experiences.


While it may seem exciting to see blockchain technology emerging, it is important to understand the topic from its core. Blockchains are the future of the existing traditional transaction systems.

Although they are secure and a great way to store data on a large network making the data handling, they are currently prone to cyber threats. There is still scope for development in this technology, but it’s worth keeping an eye on.

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