In the current Technology era, Blockchain technology is becoming a hot trend in Vietnam and around the world. In addition to the prominent application associated with Bitcoin and cryptocurrencies, Blockchain also has many outstanding applications in many different fields. So what are the applications of Blockchain and what areas are applying this technology?
In recent years, Blockchain technology is becoming a hot trend globally and in Vietnam. This technology has enormous application potential in industries from financial services, manufacturing, and the public sector to supply chains, education, and energy. According to researchers, the revenue of companies in emerging markets like Vietnam is expected to reach $1 trillion. Let’s follow the article and discover the practical application of Blockchain in our lives!
What is Blockchain Technology?
Blockchain is a technology that encodes all data into blocks and connects them together to form a long chain. Every time new information or transaction occurs, the old information is not lost, but instead, the new information is saved into a new block and in turn appended to the old block to form a new chain.
Moreover, Blockchain information is not only located on a single server, but also automatically distributed and backed up on many different servers, connected to the Blockchain system so that everyone can view and check their transactions. This can prevent modification or fraud and ensure information transparency and security.
Blockchain is the technology trend of the current era and is applied in many different industries and fields. Some countries and large enterprises spend a lot of money and time on the investigation and research of Blockchain technology because of its high practicality and good security.
Outstanding advantages of blockchain
Blockchain technology is known as the technology trend of the times because of the following advantages:
- Transparent and unbreakable
All information stored, transmitted, and processed in the blockchain system is shown in the most transparent and clear way and cannot be changed, tampered with, and destroyed. Therefore, if you want to retrieve information about your transactions or those of others, you will never have to worry about data inaccuracies.
- Anonymous feature
Blockchain brings great trust to users, helping them feel more secure when participating in the blockchain community. Because the technology focuses on user anonymity. This function will help you make transactions safely and securely without having to worry that someone knows your identity.
- Short transaction time and cost savings
Unlike traditional transactions, blockchain allows you and your partner to directly perform transactions without third-party verification, the system on blockchain will be the one to confirm for you. This will save you maximum transaction costs and time.
Important applications of Blockchain in life
Applications in the field of manufacturing
In the production process, to increase the productivity of the supply chain management process, it is necessary to have a smart device. The Blockchain system will replace this device to help monitor the production and distribution of products, quantity and quality of inventory, transaction information,…
Due to the transparency of Blockchain, consumers can use this technology to check if the product is genuine, helping to limit the risk of buying counterfeit goods.
Applications of Blockchain in the manufacturing sector:
- Inventory management, production warehouses
- Track the supply of manufactured materials in the supply chain
- Track the production process, the quantity of goods purchased and sold
- Product traceability
Applications of Blockchain in the field of medicine and healthcare
In the field of medicine and healthcare, the trend of digitizing documents and information including the patient’s health history, inventory management, purchase orders, payment transactions for medical devices… in the data management process is becoming popular. Therefore, smart devices are equipped in most hospitals to manage and monitor this data. However, these devices still have many limitations in terms of information security and the connection between devices. Therefore, Blockchain is widely applied in this field.
Applications of Blockchain in the field of medicine and healthcare:
- Linking and developing applications for disease management (such as smart medicine, devices for measuring health indicators) and quality management
- Supply chain management of medicine and medical equipment: Track input supply, origin, expiry date of medical supplies and equipment
- Increase transparency and automation for medical care transactions; origin of clinical tests; ownership of patient health data
Applications in the field of education
In the field of education, Blockchain technology can be applied to help limit fraud in the process of studying, applying for scholarships and jobs,… to overcome false declarations about educational qualifications, work experience,… With the outstanding smart contract feature, the terms of training rules can be automatically implemented to help handle violations, improve the teaching process, feedback from students, etc.
Applications of Blockchain in the field of education:
- Track and store transcripts and degrees of students and information of training institutions such as universities, skill centers, vocational schools,…
- Assess the candidate’s suitability for the teaching job or not, thereby making an appropriate decision
- Assess an individual’s performance against entry requirements based on a database of learning and scores recorded with high security
- Managing the level of assessment of credibility in scientific research
Applications in the field of agriculture
In the agricultural sector, one of the key factors that help to gain trust and loyalty from consumers is the source of safe and quality food. Therefore, the Blockchain system as an agricultural ledger on a digital platform will support users as well as retailers to understand product information in a transparent and clear way. Any user in the system can track the transportation process from the production facility to the point of sale such as markets, supermarkets, retail stores,… and transactional information as well as data on quality management, price management, financial management, sales management.
Applications of Blockchain in agriculture:
- Product and inventory supply chain management
- Store product information, care procedures, standards for clean food
- Traceability, production life cycle of agricultural products
Applications in the field of finance – banking
In the field of finance – banking, problems of user information security, abuse of power, and corruption often occur. Therefore, using Blockchain technology with outstanding advantages from smart contract features such as cost savings, fast transactions, minimizing financial risks… will be the optimal choice.
Applications of Blockchain in the field of finance – banking:
- Verify customer information, credit ability without intermediaries
- The digital ledger verifies, settles, and updates peer-to-peer transactions continuously
- Manage and reduce payment risks due to technical problems, default before payment of transactions
- The intelligent management system enables continuous innovation, iteration and improvement, based on the consensus of all users in the network.
Applications in the field of retail
The process of supply chain management, product management such as the distribution of goods, information and quantity of products as well as financial reports, purchase and sale contracts are extremely important. Therefore, with the advantage of high accuracy and security, helping to minimize damage in all stages from importing goods to selling, Blockchain technology has been widely applied in this field.
Applications of Blockchain in the retail industry:
- Manage items through identifiers on the Blockchain system including production process, item information, and shipping, storing, inventorying time…
- Ensuring the quality of goods when there is an exchange between the manufacturer and the transport company
- Managing the circulation of cash flows arising from transactions, helping to minimize damage and being able to handle quickly when problems arise.
Applications in the field of e-commerce
In the era of 4.0 technology, forms of online commerce for e-commerce platforms such as Lazada, Shopee, Tiki, Sendo… and online payment are becoming extremely popular. Hence, the issues of supply chain management, freight process, information security… are becoming urgent. Therefore, the application of smart contract features from Blockchain to save costs, connect multinational businesses, and make quick payments directly on the website… is an effective solution to these problems.
Applications of Blockchain in the field of e-commerce:
- Supply chain management and operations
- Manage information, product status through serial number, QR code
- Management of information systems and customer data.
- Building a smart payment system that allows the use of e-wallets in combination with customer care programs such as loyalty, gift cards, customer gratitude…
Applications in the tourism industry
For the tourism industry, Blockchain also brings many outstanding benefits to help optimize the transaction process and process customer information from choosing agents, booking vehicle tickets, booking hotels to visiting places… in a stable manner with high security, limiting errors and malfunctions from management systems.
Applications of Blockchain in the tourism industry:
- Baggage managing and tracking, booking flight tickets, hotel rooms.
- Personal identification service saves time for the check-in process at airports, hotels, tourist attractions
- Various forms of payment from many global banks, e-wallets, electronic money…
- Building customer care programs such as loyalty customers, V.I.P customers…
In addition, Blockchain is also widely applied in other fields and industries such as production of means of transport (production processes, materials, equipment…), charity activities (contributions), cyber security (against hacking, data theft and alteration), election (control process and vote count), personnel management (candidate’s identity and work history), real estate property (purchase and sale contracts, transactions, etc.)
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Disclaimer: This article is for informational purposes only, not investment advice. Investor should research carefully before making decision. We are not responsible for your investment decision