Applications of Blockchain in Online Sites

Blockchain technology has progressed ever since Bitcoin’s commencement in 2009. However, it served as a bedrock for Bitcoin and a robust networking system for many organisations. Since then blockchain has been implemented in many other areas of the digital world. Blockchain app development unlocks lots of possibilities to be integrated into online sites across the internet. 

Blockchain technology, with its promise of decentralisation, security, and transparency is impacting industries:

• If we look at the market size of blockchain technology globally. It was $5.85 billion in 2021 and $10.02 billion in 2022. $19 billion was spent worldwide on blockchain solutions by 2024 and is expected to grow by $94.3 billion by 2027.
• Currently, over 300 million people worldwide use blockchain for cryptocurrency, representing roughly 3.9% of the global population. The number of blockchain wallet users has grown significantly, reaching over 82 million globally in 2021.
• Gartner estimates that the business value generated by blockchain-based systems could reach $3.1 trillion by 2030 (Statista).

Many countries are developing Central Bank Digital Currencies (CBDCs) – digital versions of their fiat currencies – leveraging blockchain technology for potential benefits such as improved cross-border transactions. In that line, let’s define blockchain development services and its uses in online sites and the benefits that it brings to them.

What is Blockchain Technology? 

Blockchain technology is a set of computers that work together to bring a decentralized system to the table. That being said, this system properly functions on its base, which is the network of computers and the transactions flow seamlessly in the system without the need for an intermediary. 

The strongest point of blockchain is its decentralisation. People prefer integrating blockchain technology because it does not demand high fees for national as well as international transactions. Reasonable remuneration is one of the reasons for online e-commerce; gaming and other various sites are embracing blockchain technology increasingly every day. 

To understand how this technology is empowering mobile app development companies, here are the industries adopting it.

Applications of Blockchain in Online Sites

Online sites are increasingly exploring their potential to create a more secure, transparent, and user-friendly experience. Here’s a quick look at how blockchain is making waves:

1. Supply Chain Management

One of the most well-known uses of blockchain is in supply chain management. Supply chain companies highly appreciate blockchain because of its transparency and traceability. What that means for these companies is that both the provider and the client can have the full history of the movement of goods from origin to destination. This eases the communication between the two parties and prevents issues with counterfeit goods.

2. Online Gambling Sites

Blockchain is also increasingly being used in online gambling sites. There are a variety of casino sites from online roulette gambling, to online blackjack, to online slots and many more which are using blockchain technology in their platforms. Blockchain technology is bringing enhanced transparency to gambling sites, which is crucial for the fairness of play. Another important feature that blockchain offers is data security which is also a huge plus when it comes to gambling sites and the protection of the personal data of users in the payment system.

3. Financial Transactions

Blockchain technology can pretty much be used within any e-commerce site of any kind to support its financial transaction system. This would make the payment process easier for both the customers and the page owners. Blockchain technology reduces the processing time while eliminating the additional fees when paying in other currencies or when the payment is received in another country. Blockchain is certainly digitising the payment methods from conventional methods to cybernate and automated ones.

4. Digital Identity Verification

Another solution based on blockchain technology is digital identity verification. This solution is in the process of becoming one of the advanced methods for the verification of identities. This solution will offer seamless & secure authentication processes, which would further eliminate the unauthorized use of customers’ accounts. As a result, user privacy will be maintained allowing users to trust the online sites. Consequently, the online sites are expected to attract even more people than others.

Methods to Implement Blockchain in Online Sites

When it comes to implementing blockchain in online sites, there are some things to consider. So, if you were thinking of also implementing blockchain on your site, you have come to the right place. Here’s what to look for:

• Find a suitable blockchain platform

A suitable platform can bring success to online sites with Blockchain implemented in it. You can choose between the two – private or public platforms. However, some of the most famous ones include the widely known public site Ethereum. Yet there are also private ones that you can rely on and fit your needs better.

• Develop a proof of concept (POC)

Before implementing the blockchain technology into your site, it is advisable to have a POC developed. Proof of Concept helps businesses to test feasibility and functionality. Integrating POC through API into the system offers certainty of the workability of the existing systems.

• Implement cybersecurity measures

Just like with any other system that is implemented in an online site, you should make sure that you have implemented cybersecurity measures for blockchain tech. This will make it possible for the technology to work seamlessly and identify any threats.

Other Considerations For Implementing Blockchain Technology

Blockchain technology offers a plethora of advantages for online sites, but implementing it successfully requires careful planning and consideration. Here are some more factors to ponder:

Necessity and Use Case

• Does your online site truly need blockchain? Carefully evaluate if the benefits of blockchain (security, transparency, etc.) align with your specific needs. Don’t implement it for the sake of being trendy.
• Identify the Right Use Case: Not all aspects of your online site require blockchain. Pinpoint the specific functionalities (e.g., secure payments, content ownership) that can be most effectively enhanced by blockchain.

Technical Considerations

• Choosing the Right Platform: Numerous blockchain platforms exist, each with its strengths and weaknesses. Consider factors like scalability, security, and developer compatibility when selecting a platform.
• Integration Complexity: Integrating blockchain technology with your existing website infrastructure can be complex. Evaluate the technical expertise required and potential development challenges.

Security and Regulations

• Blockchain Security is Not Foolproof: While secure, blockchain itself isn’t invincible. Assess potential security vulnerabilities specific to your chosen platform and implement robust security practices.
• Navigating the Regulatory Landscape: Regulations surrounding blockchain are still evolving. Stay informed about current regulations and how they might impact your online site’s use of blockchain technology.

Cost and Scalability

• Blockchain Implementation Can Be Costly: Developing and maintaining blockchain-based features can be expensive. Factor in development costs, platform fees, and ongoing maintenance expenses.
• Scalability Considerations: Not all blockchain platforms can handle massive amounts of data or transactions. Ensure the chosen platform can scale to meet your online site’s potential growth.

User Experience

• User Adoption is Key: The most secure and transparent system is useless if users find it cumbersome. Consider user experience and design interfaces that are intuitive and user-friendly.
• Educating Your Users: Not everyone understands blockchain. Provide clear explanations and resources for your users to understand how blockchain benefits them on your online site.

Why Blockchain Shines As a Future Perspective?

The applications of blockchain technology hold immense potential for solving real-world problems. Here’s a closer look at why each idea is effective and beneficial:

Asset Management

Blockchain can revolutionize asset management by creating a transparent and secure record of ownership.

Each asset (stocks, bonds, real estate) can be represented by a digital token on the blockchain, allowing for efficient tracking, trading, and management.

Traditional asset management systems can be opaque and prone to errors. Disputes regarding ownership and transaction history can be complex and time-consuming to resolve.

Blockchain creates a single, transparent ledger for all asset ownership and transactions. This eliminates the need for intermediaries and reduces the risk of errors or fraud.

Cross-Border Payments

Traditional cross-border payments can be slow and expensive.

Blockchain can facilitate faster, cheaper, and more secure international transactions.

Smart contracts can automate the exchange of funds upon fulfilment of predefined conditions, eliminating delays and manual processing.

Healthcare (Smart Contracts)

The healthcare industry struggles with inefficient record-keeping, data privacy concerns, and slow insurance claim processing. Smart contracts on the blockchain can streamline various healthcare processes.

Secure storage of medical records on the blockchain ensures data privacy and facilitates secure access for authorized personnel. Smart contracts can automate claim processing based on predefined criteria, reducing administrative burden and delays.

Copyright and Royalties

Tracking and enforcing copyrights in the digital age is challenging, making it difficult for creators to receive fair compensation for their work. 

Blockchain establishes clear ownership of digital content (articles, music, art). Smart contracts automatically distribute royalties to creators whenever their content is used, ensuring fair compensation and eliminating disputes over copyright ownership.

Smart Homes (With IoT)

Security concerns and a lack of interoperability exist with current smart home devices. Blockchain can be integrated with the Internet of Things (IoT) to create secure and automated smart homes.

Secure communication between smart devices: Blockchain can ensure secure communication between various smart devices in a home, preventing unauthorized access.

Automated energy management: Smart contracts can automate energy usage based on real-time data, optimizing efficiency and reducing costs.

Secure Repository for Certifications 

Traditional paper-based certificates are susceptible to forgery, loss, and damage. Verification processes can be slow and cumbersome.

Blockchain can create a secure and tamper-proof repository for important certifications like birth and death certificates.

Each certificate can be represented by a unique token on the blockchain, ensuring authenticity and eliminating the risk of forgery.

Access Control: Blockchain allows for granular control over access to these certificates. Only authorized individuals (government agencies, healthcare providers) can access specific certificates with proper permission. This ensures privacy while enabling efficient verification processes.

For example, a healthcare provider can verify the authenticity of a birth certificate without needing the entire document, protecting sensitive personal information.

The effectiveness of these solutions lies in blockchain’s core strengths:

• Immutability: Records on the blockchain cannot be altered, guaranteeing the authenticity and validity of data.
• Transparency: Authorized users can see all transactions and ownership changes, fostering trust and accountability.
• Security: Blockchain’s cryptography makes it extremely difficult to tamper with or hack into the system.
• Decentralisation: No single entity controls the data, reducing the risk of manipulation or data breaches.

Summary

In conclusion, blockchain technology is a great addition to websites across the internet. While it is currently widely being embraced, it is expected that in the future it will invade even more sites on the internet. Remember, blockchain implementation is a strategic decision. By carefully considering these factors and ensuring a clear alignment with your online site’s goals, you can leverage blockchain technology to create a more secure, transparent, and user-centric online experience.