Crypto

Is Crypto the Only Representation of Blockchain?

November 29, 2022 • 224 Views • 14 min read

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Bohdan Vasylkiv

CEO & Co-Founder

If you are looking for a short answer - then no, it is not. In fact, it is a pervasive delusion, which can be easily explained. The main reason for such deception is the fact, that cryptocurrency is the most spread and well-known blockchain-based use case. Thanks to the high-level monetization of this blockchain sphere and its user-oriented design, it has gained a large audience.

The Reasons for Misconception

Cryptocurrency is targeted at the end-user. Therefore, its entry threshold is very low, and users are not obliged to know anything else, except for the current situation in the market of digital assets. In other words, as with any software product, each crypto project can be easily divided into two different areas: Frontend (User Interface) and Backend (Blockchain).

The main distinction of cryptocurrency, compared to other software projects, lies in the fact, that crypto users are partly aware of the backend elements, to be more specific - they know about the existence of this technology, and blockchain value in cryptocurrency - it is impossible to create crypto without blockchain. However, this fact resulted in the overall misunderstanding and objectification of this technology from the perspective of regular users.

On the other hand, software developers understand the blockchain value in cryptocurrency, yet do not tighten it only with crypto. In fact, as in most other software development products, developers are the only ones, who genuinely understand the importance of Backend technologies and their usage potential. Thus, it has already become a new trend in IT - to use a blockchain in an app. For instance, if you dig deeper, you can find numerous examples of blockchain use cases in healthcare, banking, supply chains, and many others use cases. To better understand the actual potential of blockchain technology, we should first explain the term itself.

Blockchain Explained

So, what is blockchain? As the name says, it is a “chain” of “blocks”. As a matter of fact, this technology is simply a way of securely transferring data. To make it simple, in this scenario, data is treated mutually instead of independently. As a result, data is transferred in a slightly different way. Usually, it is streamed as is, without any complication, while with the use of blockchain, data is connected into data blocks, which are later transmitted.

So, blockchain treats structured data. This gives some additional security opportunities. For example, some blockchains do not allow various injections or interceptions. Before being added to the chain, a block of data must be approved by the system and previous blocks. In case, the block is different and does not meet the requirements, it will be denied and the whole transfer may be stopped. This feature is very useful, especially, when we talk about cryptocurrency, or fragile and specified data, which must be secured from third parties.

Moreover, another great benefit of using blockchain in various industries is the fact, that it saves all related data about each transaction. As a result, it will be easier to monitor various aspects, related to the transactions.

Blockchain Usage Purposes

Talking about the need for blockchain app development services, they are an additional feature rather than a must-have option at the moment. Frankly speaking, right now this technology is still under development. Blockchain is a relatively new technology, which is still being improved and implemented. Nevertheless, it is recommended to start adopting it now in case, you have spare resources or a unique solution, which is based on the blockchain.

Blockchain Use Cases.png
Still, despite these drawbacks and imperfections of this tech, there are numerous examples of a successful adoption. Among them, it is possible to name at least a few blockchain use cases for supply chain, healthcare, FinTech, etc. Actually, one of the main pros to use a blockchain in an app is the fact, that this technology is the tech of the future. Therefore, sooner or later, it will become a common option for numerous cases. If you will start the process of implementation now, you will have an advantage over your rivals for now and in the future. To make it clear, let’s consider some examples.

Blockchain Use Cases for Supply Chain

Actually, it seems, that the Supply Chains and Logistics spheres, as well as finance, are perfect for blockchain adoption. In fact, they help to simplify and speed up a wide range of various processes, proposing also a high level of security and accuracy. For instance, it can be used for fast package data sharing, improved international payments, etc. Among the most active contractors who propose blockchain app development services, it is possible to name IBM. In fact, an additional benefit of these technologies is that it is not necessary to create your own blockchain. You can simply find a provider and gain paid access to the existing blockchain. However, if you are willing to have full control over the system or require some additional features, you will most likely have to hire a development team.

Talking about the examples of this technology in the logistics industry and supply chains, we can name at least a few of them.

VeChain

It is a newcomer to this sphere, who managed to gain popularity thanks to the unique services provided. Apart from the fact, that this product is blockchain-based, VeChain also managed to expand its functionality. For instance, with the use of third-party hardware, they managed to create a transparent supply chain, which is able to track numerous aspects of the packages like their storing temperature. As a result, VeChain created a unique, highly modular, and automated product with the ability to extend functionality on demand.

Wallmart Supply

Frankly speaking, the newcomers are not the only ones, who try to adopt blockchain technology in their products. For instance, Walmart in collaboration with already mentioned IBM implemented blockchain into their supply chain to ensure the quality and safety of their products.

As a result, for now, they have successfully launched a pilot supply chain to track and gather all the needed data about the pork, transferred from China. As a result, they managed to structure and collect all the related data and are able to easily track each consignment if it is needed. This helps to save time and effort a lot. The product-transferring market is very demanding and if something goes wrong, suppliers are obliged to get rid of the whole shipment, as it was at the very beginning of the COVID-19 Pandemic.

Bext360

Another example of a blockchain-based supply chain is Bext360. It is a SaaS startup, which provides supply chains as a service. Therefore, any retailer can buy access and use a ready-to-use solution for their supplies. Among the examples of such cooperation, there is a Bext360 and Coda Coffee collaboration.

These two companies managed to create the first-ever coffee-tracking supply chain, based on blockchain technology, designed “from bean to cup”, i.e. it is possible to track the whole process of supplying coffee beans from the very beginning to the end. This helps not only to be aware of the current status of the supply but also to figure out its origin. In this case, all the related data is included in the supply chain: each bag has a unique ID number, which helps to track it.

Blockchain Use Cases in Banking

It is worth admitting that cryptocurrency has shown how effective blockchain is as a tool in the FinTech industry. As a result, other businesses from the sphere started considering the adoption of blockchain and figuring out how to use a blockchain in an app. Frankly speaking, for now, there are no known examples of successful blockchain implementation in the baking industry. All we are aware of is the fact, that various banks are interested in such technology and are considering such upgrades in the nearest future. It can be explained due to the fact, that the banking sphere is highly compatible, so there will be no clear information about any technological improvements until they are embodied.

Nonetheless, including the overall blockchain success in cryptocurrency, it is clear, that blockchain use cases in banking are a question of time.

Blockchain Use Cases in Healthcare

Another example of a great way to use blockchain for various purposes is undoubtedly healthcare. There is no need to explain why it is important to rapidly provide accurate data about the patients, their treatment progress, prescribed drugs, etc. Also, it is important to keep this information secure. Thus, blockchain is simply the most obvious solution for such cases.

Medicalchain

For instance, Medicalchain proposes the decentralized sharing of patients' data. As a result, it becomes easier and safer to store and share medical records with various healthcare-related institutions like hospitals or insurance companies. Also, such an approach allows sharing of data with specialists directly, avoiding various third-party actions and mediators.

Yet, the only problem lies in the authorization process. For instance, at the very beginning, when the service was just pushed online, various scammers tried to pretend to be the company's representatives, trying to sell fake Medicalchain coins on different messenger platforms. However, it is worth admitting that it is not an actual blockchain issue. Probably each monetized project becomes a scammer’s target. Moreover, all these fake trades were performed via third-party applications.

MediLedger by Chronicled

MediLedger has a slightly different usage. In fact, it is a blockchain-based platform, designed specifically for different companies, which work in the medical field. As a result, it proposes both smart contracts and supply chain options.

In other words, it can be used to authenticate each other, figure out the status of each company, their responsibilities, etc. Also, companies can use this platform not only to get to know each other but to get in contact. Besides, this platform can be used to set up a smart contract between them.

Summary

Simplifying all the above, we can say, that it is impossible to imagine crypto without blockchain. However, when we consider blockchain technology itself, it does not always narrow down to cryptocurrency only. Actually, blockchain is a much wider and more complex technology, which can be used for countless other use cases apart from cryptocurrency.

Blockchain is a relatively new technology, which is still under development. Thus, it is hard to define exactly its limits. For instance, only a few years ago, most of us didn’t even believe, that such a phenomenon as smart contracts will appear. Yet, for now, it becomes a common thing, that can be used for different purposes. Therefore, if you have an idea for your future app and wonder if blockchain implementation will be useful, the only way to know for sure - is to examine various case studies.

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