What are the applications of Blockchain?

The topic we are going to discuss is the applications of Blockchain. So, let’s start. If I talk about the applications of Blockchain, there are many, but I will talk about a few specific applications. For example, Product Tracking, Smart Contracts, Healthcare Systems, and International Wire Transfers. So let’s start with Product Tracking. Suppose you buy a specific item from a store, like coffee, and you bring it home. But do you know if the coffee in that packet is original? It might not be original; you have seen the brand’s name, the packet’s name, and many times in the news that fake products have been caught. And we always have some fear that the item we are buying is genuinely original or not. So what if I tell you that you can fully track your product, from where it was produced, from where it was supplied, and through which places it has passed? So let’s talk about Denmark, where a supermarket has implemented blockchain, and you can see a barcode, a QR code on each product. By using this, you can track where your product has come from and where it has gone.

Now let’s talk about Smart Contracts. Suppose there is a contract between A and B. A will supply some apples to B at a specific time. But the distance between A and B is quite far, so A has to keep in mind that the apples or food should be in good condition when they reach B. For this, A has to maintain the container’s temperature so that the food doesn’t spoil. The moment A supplies the food to B, it becomes B’s responsibility to pay A. Now the problem could be if A gives spoiled apples to B, or B doesn’t pay A even after receiving the proper apples. In both situations, either A or B could be at a loss.

In this situation, to avoid the problem, they can make a Smart Contract. Let’s understand Smart Contracts through a diagram. This is our Smart Contract. We will write a program in the Smart Contract where we will state entirely when the delivery will happen and when it will not, and when B has to pay A and when B doesn’t have to pay A. Here we have assumed that the temperature is a condition to keep our food safe, and we will check the container’s temperature using IoT devices. If the IoT detects a temperature above 30 degrees Celsius, then the delivery will not happen, and B will not have to pay A.

Now the most important thing is the immutability of Blockchain. Once a program is written on the Blockchain, no one can delete it. If there is any problem between A and B, the Smart Contract will determine the outcome. Previously, we had to take the help of the court, but now the Smart Contract will directly solve the problem.

Another important application of Blockchain is International Wire Transfers. Suppose you have to send money to the USA. First, you have to go to your bank, and then the bank will not directly send the money to the recipient’s bank. Because it is an international transfer, to prevent black money or money laundering, banks have to go through many formalities, a lot of paperwork is done, which is checked, so in this process, the sender doesn’t directly send the money to the receiver’s bank. First, it sends the money to a correspondent bank, and then these correspondent banks send the money to the receiver’s bank. In this process, many banks are involved; there can be one or multiple correspondent banks. As a result, many banks get involved, and this process becomes time-consuming. Generally, if you send money to another country today, it might take a week to ten days for the money to reach. Our centralized system has two major disadvantages: first, the fee is very high, and second, it is very time-consuming. Why is the fee high? Because many banks are involved, and everyone wants to take their commission. This fee can range from ten percent to thirty percent, varying by country. If you send money from India, suppose you send 100 rupees, then 10 rupees will be deducted as a fee, and only 90 rupees will reach your family. Our Blockchain completely eliminates these two disadvantages. In Blockchain, the fee is only one to two percent, and the time taken is also less. If you make a UPI payment within India, it reaches within a second or a minute. In the banking sector, many banks like JP Morgan have now adopted Blockchain.

Now let’s see how Blockchain can help in our healthcare system. Suppose there is a city A and a city B, where they have their own hospitals. The hospital in city A stores all its data in its own database. If for any reason X has to go to city B and there is a medical emergency there, the hospital in city B knows nothing about X because all the medical history is in the database of city A. City B has to conduct many tests, which is time-consuming and causes delays. The solution is, if X stores all his medical history on a Blockchain and the hospital in city B can access that data, then treatment can start quickly. This is not a centralized database, rather it is X’s own Blockchain where he can write data, and the hospital in city B can read that data. I hope you have understood this well.