You’ll agree with me that the Blockchain technology is no longer a hype – it is one of the major forces reshaping industries from finance to healthcare, supply chain through entertainment.
However, for those entering the blockchain space, this is when you also come to realize that not all blockchains are made equal. Blockchains can take on a number of different forms, each with their own strengths and weaknesses, they serve many different purposes.
In this article, we will treat use cases and applications of different types of blockchain technologies for your benefit.
Use Cases and Blockchain Applications
We want to look into use cases of blockchains applications in industries and what application is best suitable for any of the blockchain.
Types of Blockchain
Public Blockchains
These are permissionless distributed ledgers on which anyone can join and make transactions.
It is a non-restrictive form of the ledger in which each peer has a copy; this means that anybody with Internet access can access the blockchain.
Public Blockchain are the best for applications that demand a high degree of transparency and security, no transaction should be altered.
Use Cases for Public Blockchain
- Voting: The use of public Blockchain in the voting system by the government can increase openness and trust.
- Fundraising: Businesses or NGOs can use the public Blockchain to improve transparency and trust.
Private Blockchains
Public Blockchains operate in a context, such as a public network or controlled by single means of identity.
They are often run on a small network within a firm or organisation rather than open to everyone who wants to add to processing power.
While it has peer-to-peer connection and decentralisation to a public Blockchain network, this blockchain is extremely small.
Use Cases for Private Blockchains
- Enterprise Solutions: Private Blockchains like chain and Quorum are used to run enterprise solutions e.g, voting systems and digital identity management.
- Supply Chain Management: Private Blockchains like corda and Hyperledger are used for the building and running of decentralised supply chain management solutions.
Consortium Blockchain
Consortium Blockchain are networks that are controlled by a group of organisations such as R3 and EWF.
These are based on a consensus mechanism called practical Byzantine fault tolerance (PBFT), which makes sure all records of transactions remain authentic and recorded on the blockchain.
Consortium Blockchain are suited for applications that require inter-organizational collaboration and Consortium networks, such as digital identity management and finance.
Use Cases for Consortium Blockchain
- Digital identity management: Consortium Blockchain like Sovrin and uPort are used for creation and running of digital identity management solutions.
- Finance: Consortium Blockchain like R3 and EWF are used in creation and running of finance solutions such as invoices financing and letter of credit.
Hybrid Blockchain
Hybrid Blockchains, as the name implies, is a combination of private and public Blockchain features and attributes.
A mix of private and public Blockchain are allowed for access into the network, enabling a balance of scalability and decentralisation.
Use Cases for Hybrid Blockchain
- Healthcare: Hybrid Blockchain is used in securing patient records privacy. It is used to securely store and share medical records and ensure collaboration between healthcare providers.
- Financial Services: Hybrid Blockchain is used for creation of digital assets, currencies and the execution of smart contracts, providing secure, seamless and efficient mode of financial transactions.
- Digital Identity: Hybrid Blockchain helps in creating digital identities that are secured, interoperable and private, ensuring enabled secure sharing of personal data.
Conclusion
The diversity of applications on blockchain technologies across different industries highlights its transformative potential.
Public, Private, Consortium and Hybrid Blockchains all seek for security, privacy, transparency, collaboration, identity management, and balanced solutions for healthcare and finance.
Each blockchain brings a specific advantage to a particular use case, showing versatility and adaptability of blockchain technology in addressing diverse business needs.
As organisations continue to explore and implement these technologies, the landscape of digital solutions will undoubtedly grow, driving innovation and efficiency across various industries.
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