Beyond Bitcoin: 4 Real-World Problems Blockchain Is Already Solving (That Aren’t Money)

When most people think of Bitcoin, they think of a digital currency or even an asset these days. But Bitcoin (and other cryptocurrencies) are actually much more than that: their technology, blockchain, can be used for many purposes beyond just money transfers. Some of these applications might surprise you: blockchains can power websites like the casino fortunica, secure supply chains, or protect your digital identity. Here, we’ll take a closer look at how they are used, using real-world examples.

What Are Blockchains and How Do They Work?

But before we begin, we need to briefly explain how this is possible. A blockchain is an encrypted digital database. It isn’t stored at a specific address (e.g., a server). Instead, everyone who uses it has a copy on their device. A record added to this database cannot be modified or deleted later, because there is no single copy. Your data will be recorded in a database of thousands, even millions, of users simultaneously, and the blockchain is constantly self-checking, meaning it can verify itself without the need for an external auditor.

This simply means that data recorded on a blockchain cannot be altered or deleted. Moreover, this is a public database, meaning the records it contains are visible to everyone. But because records and transactions are encrypted, this is not a privacy violation. For example, if you transfer money to a user, the time and amount of the transfer will be visible to anyone. However, the recipient and sender information will remain private.

This feature of blockchains allows them to be used not only for money transfers but also as a database where almost any type of data can be recorded and stored, and even complex programs can be run. Now, let’s look at examples of this: how is this technology used in the real world?

Supply Chain Transparency and Traceability

Traditional supply chains are inefficient and vulnerable to fraud. Almost any authorised user can break the chain at different points by changing records, causing problems. Blockchains, however, eliminate these problems thanks to the features explained above. Here are some real-world examples:

• Walmart is using IBM’s Food Trust Network to reduce the risk of foodborne illness. This network can track the journey of tropical fruits like mangoes from farm to shelves in real time and display these records. For example, you can see when a tropical fruit on the shelf was picked and when it was added to the shelves.

• De Beers uses a similar system to track its diamonds, to see when they are mined and added to its stores. The goal is to ensure ethical sourcing and eliminate conflict stones. This system allows you to track the exact date and location of each diamond, from which mine it was extracted.

But supply chains are just the beginning: this technology can also protect digital identities.

Secure Digital Identity Management

Carrying official identification documents can be more difficult than one might think. Most people worldwide don’t have access to an ID accepted by official institutions like banks. Those who do have access face security problems. For example, a hack into a government identity database could lead to the data of millions of people being leaked. Furthermore, these databases can be misused. A blockchain could solve all of these problems. Here are some examples:

• Estonia has been using such a system for a long time. This system, called Self-Sovereign Identity (SSI) or eID, provides both citizens and entrepreneurs with access to a blockchain-based system where they can store all their identity documents. This eliminates the need to carry an ID; they can access e-services in their country from anywhere in the world.

• The World Food Program is using this technology in a project called “Building Blocks”. This project is specific to refugees. Even those who don’t have paper ID documents can access food and healthcare aid with their blockchain-based IDs.

There’s more: we mentioned blockchain’s self-verification feature above. This feature can also be used to prevent forgery attempts.

Provenance in Luxury Goods and Art

High-value goods and artworks are prime targets for forgery. Verifying their authenticity takes an extremely long time, incurs significant costs, and requires tons of paperwork. However, using blockchain makes it possible to do all of this simultaneously and at a very low cost. For example:

• Verisart is using a blockchain to certify artwork provenance and track ownership history. It simply uploads certificates of authenticity for an artwork to this digital database, and both collectors & art galleries gain access to solid records.

• LVMH’s AURA platform uses a similar system. It allows the entire lifecycle of luxury items (e.g., expensive handbags or watches) to be tracked and accessed even from a smartphone. So, if you are worried about whether your handbag from a famous brand is authentic or not, you can easily verify it.

But we can also use immutable records for something else: voting.

Transparent and Efficient Voting Systems

Traditional voting systems, whether paper-based or electronic, are prone to fraud and extremely difficult to audit. They can also take an extremely long time to produce results: sometimes, the counting of votes can take days. Blockchains can solve all these problems, and some places are already doing so:

• Field tests of a voting app called “Voatz” are underway in West Virginia. This app was developed to allow overseas military personnel to vote from their location, but there’s no reason why local residents shouldn’t benefit from it as well. Voatz provides ballots that are both secure and auditable.

• Sierra Leone used a blockchain-based voting system for its presidential election in 2018, becoming the first country to do so.

• Romania was the first EU country to do the same in 2023, using blockchain technology for national elections.

In short, while this technology was initially used to facilitate secure money transfers, today it can do much more. Blockchains’ immutable and indelible records allow us to create a digital database that can be used for a multitude of purposes. Perhaps we should start talking about the future of this technology rather than the future of Bitcoin and other cryptocurrencies, because what blockchains can do is limited only by our imagination.