Month: December 2022

Trust, security, accountability, and transparency have essentially become synonymous to blockchain these days. Especially when it comes to private blockchain, which, as we discussed in a previous article (https://inmost.pro/blog/private-blockchain/), allows you to create versatile business applications with high scalability in a trusted environment, though sacrificing decentralization.

Most companies that have already implemented blockchain technology do not consider this fact to be a disadvantage. On the contrary, allowing only authorized users access the network provides the highest level of security while taking full advantage of all the other benefits of blockchain. Private blockchains are for the businesses that want more privacy and more control over data. 

Among the companies that are already actively taking advantage of the blockchain integration are Shell, Walmart, Mastercard, De Beers, Oracle, and many others.

Let's explore some use cases for private blockchain:

 

E-commerce

As the world of e-commerce is growing rapidly, numerous parties are involved in the operational processes, including consumers and companies buying goods or services, suppliers and delivery networks, and finally e-commerce platforms. 

As a rule, participants in this complex ecosystem are located in different countries and jurisdictions and transact in different national currencies, which lead to a truly complicated transaction process. Using third-party services usually involves problems such as high costs and fees, transaction duration taking up to several days, non-transparent payment processes, and unpredictable exchange rates. 

At the same time, customers demand that purchases be processed quickly and without hidden fees. They want to rely on the security of their personal data and, of course, have a guarantee of the brand authenticity.

The integration of private blockchain technology can solve all the above problems for both e-commerce platforms and consumers. Blockchain allows companies to track products through the entire logistics chain, from manufacturing to delivery. It provides a secure, tamper-proof method of recording transactions and allows businesses to verify the identity of customers and suppliers to prevent fraudulent activity and counterfeit goods. Blockchain eliminates the need for intermediaries by providing real-time transaction speed, reducing costs for third-party services and real-time exchange rates. 

 

Internet of Things

The tremendous growth in the use of IoT technology has a snowball effect these days. Smart devices, smart homes and, subsequently, smart cities have already become a reality. 

The IoT infrastructure consists of sophisticated chips and sensors embedded in physical objects and transmitting data to the network. This network provides data transactions on multiple devices operated and owned by different organizations, making it difficult to determine the source of data leaks in case of a cyber attack. 

Moreover, the IoT generates immense volumes of data with multiple interested parties involved, and the ownership of that data is not always obvious.

Blockchain technology can solve these problems by making IoT devices more safe and efficient. Private blockchain can provide much faster data processing among billions of connected devices, as well as create an additional layer of security for IoT networks. Blockchain enables a much higher level of encryption, making it virtually impossible to overwrite existing data records and due to smart contracts sensors can transmit data without any need for a trusted third party.

 

Healthcare 

Sensitive medical records demand the highest level of protection, as their unauthorized usage leads to significant risks to fundamental patients rights. Improving data processing and storage processes, as well as optimizing workflows, is a top priority for the healthcare industry.

In 2016, Johns Hopkins University published a study showing that the third leading cause of death in the United States was medical errors caused by uncoordinated care, such as planned procedures that are not performed as intended or errors in patient records. Blockchain-enabled solutions can help enhance trust in sharing data while eliminating problems with data transparency and interoperability. 

For example, a blockchain-based electronic record system that acts as a comprehensive single view of the patient's medical history, in which every doctor's note, prescription, or test result cannot be falsified or altered. Such a complete, single source of medical record information creates a better experience for patients and healthcare providers and helps clinics significantly reduce the legal and operational costs. 

Private blockchain technology also meets high security standards in terms of data privacy, sensitivity and the control of access.

 

Insurance

The scope of insurance services and things that can be insured continues to expand and adapt to the current reality - for example, recently the number of insurance services related to the pandemic has increased significantly. You can insure not only a house or a car, but also any piece of furniture, a beloved pet, there are a large number of exotic cases, such as insurance against unrequited love. Meanwhile, insurance companies face constantly growing compliance, intense competition, fraud allegations and third-party fees.

However, plenty of them have already adopted blockchain technology to overcome these challenges. But the specific nature and sensitivity of the data, makes the use of public blockchain inappropriate here. Private blockchain, with its limited access to the network, smart contracts, immutable and trustworthy record and transactional power, is a perfect tool for streamlining processes, efficiently handling claims, automating risk modeling and audits.

Additionally, a private blockchain can significantly improve the approach to KYS (know-your-customer ) and AML (anti money laundering) compliance by creating a single blockchain-based database, allowing partner companies to use it to facilitate customer identification. 

In addition, blockchain can also streamline regulatory compliance and significantly reduce compliance costs. Insurers would not need to manually submit compliance reports, as regulators would be able to access all relevant information on the blockchain in real time.

 

Benefits of private blockchain

Therefore, taking a closer look at each of these industries, makes it is easy to identify the following common benefits that they receive from the implementation of private blockchain technology:

• Higher level of data storage and transmission security: ability to monitor and control access and any changes;
• Transparency: it can guarantee the quality of goods and serviсes and immutability of all transactions and terms of deals;
• Cost-efficiency: smart contracts that clearly define all responsibilities of the parties and the conditions for transaction validation completely eliminate the need for the expensive intermediary services;
• Higher transaction processing speed: a private blockchain uses as many resources as necessary to process transactions, which allows for faster and more efficient transaction speeds.

 

Of course, any company from any industry would only benefit from such advantages. This means that the list of use cases for private blockchain can be much wider. In the long term, blockchain will merge the currently separate ecosystems into a fundamentally new business environment with different customer-centric approaches and products.

And the question every entrepreneur should be thinking about now: Is my company ready for such a transformation?

 

The most common use cases

The popularity of NFTs is usually associated with digital art. Non-fungible tokens have eliminated boundaries for creators, even those who are just starting their journey in digital art, allowing them to exhibit and sell their work all over the world. Any work of art, even the most primitive, unusual, and ugly, can find its admirers and be sold for impressive sums of money.

NFT avatars are gaining more popularity on social networks. Twitter, Reddit, Facebook and Instagram have already begun rolling out NFT technologies. 

The recent global socio-political situation caused disappointment in traditional and centralized social networks due to the lack of user data protection, government control, spread of propaganda and censorship. Decentralized social networks are increasingly in demand, and NFTs will play an important role in their development. 

However, is the use of NFT technology only limited to digital art and social media? Of course not.

Just like the use of blockchain is not limited solely to the crypto industry, NFT has stepped outside the common stereotypes and is now adopted by the progressive companies to transfer their business processes into a new reality.

 

Which industries can benefit from the integration of NFT technology?

Based on blockchain and smart contracts that provide secure data storage, allow terms to be clearly defined and agreements to be confirmed without intermediaries, NFTs can be applied in a broad range of areas. We'll look at just a few of them:

 

Fashion

In fact, the fashion industry was one of the first to embrace the potential of NFT. Fashion brands and designers quickly realized that the metaverse is a great opportunity to create, promote and sell digital outfits to the millions and potentially billions of people who want to style their digital avatars in line with the latest fashion trends.

Fashion NFTs can be offered in the form of virtual clothing and accessories that consumers buy and wear in the metaverse, or as digital copies of physical creations.

There are already design studios producing virtual 3D clothing. They have much more options than real clothing manufacturers, and create the most incredible and futuristic models. Sometimes the price of such clothes significantly exceeds the cost of real outfits from well-known brands due to their uniqueness and proof of ownership provided by NFT technology.

The fashion industry's intention to move toward digital transformation is confirmed by the fact that Decentraland hosted Metaverse Fashion Week in March 2022. The NFT fashion show featured more than 70 brands, including Tommy Hilfiger, Dolce & Gabbana and Karl Lagerfeld, who participated in branded catwalks showcasing the results of their collaboration with digital designers.

 

Gaming

More and more games allow players to create and customize their game characters. Buy unique weapons, artifacts, clothing, accessories and other game-related items. Recently, there is a growing trend among NFT players - to own their characters. You can create your in-game avatar and even export it to other games of the ecosystem or sell it on the NFT marketplace.

Purchasing in traditional games is a one-time, non-transferable investment limited to a single gaming environment. Using NFT, on the other hand, transfers ownership of in-game assets to the player rather than to the game's developers. Blockchain technology gives players the ability to save in-game purchases, sell them to other players, or transfer them to other games. This interoperability is achieved through blockchain technology - for example, two games created on the Ethereum network can support the same in-game assets, such as vehicles, armor, or even entire characters.

So, NFTs can easily exist independently from a particular gaming platform, and even if the game ceases to exist, the player still owns the character and acquired NFT assets and can use them in a different environment. In addition, blockchain-enabled game assets cannot be duplicated or forged because an immutable record is created when each NFT is released. 

 

Real Estate

With the development of the metaverse, the new type of property is becoming increasingly popular alongside traditional "physical" real estate: virtual real estate offers the opportunity to buy land, islands, houses, apartments, and even famous landmarks in the metaverse. Often, ownership of digital real estate is linked to ownership in the real world.

After a customer purchases virtual property, the transaction is recorded in the blockchain and the NFT is transferred to the buyer's digital wallet. After the wallet is connected to the metaverse platform, it authenticates the land ownership. Owning virtual property allows users to participate in the governance of the metaverse platform - for example, to vote on initiatives for its further development.

Physical real estate NFTs are created by registering a physical asset (your home, land, or commercial property) on a blockchain. The metadata of each NFT is anchored in a blockchain, which serves as verifiable proof of authenticity and ownership. It confirms ownership, identifies encumbrances on the property, and empowers more efficient processing of transactions. In addition, an NFT can only have one official owner at a time, it cannot be forged or altered. Smart contracts in each NFT automate all actions, creating faster and more efficient transactions without intermediaries and tons of paperwork.

 

Advertising and marketing

NFT provides companies with a new way to promote their business, advertise new products and reach new audiences. It connects brands with the customers by valuable and unique assets that ensure a long time loyalty. Non-fungible tokens help develop more personal and effective brand-customer interactions by enabling consumers to express their opinions and vote on future brand events, new product lines and potential services.

Offering digital collectibles can greatly increase brand awareness, allowing companies to build a community of fans and collectors around their products and services.

Numerous brands are already using this technology to attract public and media attention to their products. Collaboration of famous brands with NFT artists or marketplaces is quite a popular way of promotion these days. 

And of course, the metaverse should be mentioned again. Companies can test the demand for their future products by creating a virtual prototype and getting feedback before launching the product in reality. Virtual spaces offer the possibility to place ads on billboards, banners and even on the metaverse-radio.

Marketing industry experts believe that the most powerful strategy for brands promotion is a combination of social media and NFT technology.

 

Healthcare

Currently, healthcare providers in most cases use outdated methods of storing medical records, which leads to high costs, slow record retrieval and low security, which often leads to loss or sale of patient medical data. However, some companies have already leveraged the benefits of blockchain, keeping patient’s medical records as NFTs.

By storing medical data on the blockchain, patients will be able to own their records without third-party involvement, making all processes related to medical care more efficient and secure. Patients will be able to track their medical data and hold those who use it without their consent accountable. They will also be able to get paid every time they give the company permission to use their data for research, building marketing strategies or new products. Tools such as the decentralized software engine used by clinical trial platforms and healthcare organizations already exist to track and process patient consent for clinical trials via NFTs.

Blood donation organizations use non-fungible tokens to track a blood donation through their system. A digital "blood bank" can be created by registering blood through its NFT, with the blockchain system tracking demand for specific types of blood to deliver them quickly to where they are needed.

 

Some final words

The use of NFT technology is certainly not limited to the areas mentioned above, and there is no doubt that with the development of Web-3, despite all the concerns and hype, NFT will continue to be integrated into various aspects of our lives, perhaps even in the most unexpected ways.

We are ready to help companies that recognize the need to build the foundation for their presence in the new digital reality, where there is no more room for paperwork and old-fashioned document flow, boring and monotonous presentations and non-transparent transactions. The Inmost team has a successful track record in developing NFT, and blockchain is one of our core competencies.