Blockchain is used in all areas where rapid transfer of information with a high degree of protection is needed.
The technology is used to launch and operate cryptocurrencies and digital currencies, in smart contracts for goods, in the generation of non-fungible tokens (NFT), in banking and legal industries, in network administration, and the gaming industry. Blockchain technologies are used by government agencies (e.g., for conducting and processing referendums and votes), public and nonpublic corporations, public organizations, and private individuals.
Any cryptocurrency functions based on blockchain technology. The technology is used both when issuing new cryptocurrencies and generating new tokens (coins) and when settling existing ones. There are more than 300 cryptocurrency projects in the world now. The most popular, in addition to bitcoin, are Ethereum, Ripple, Tether, Litecoin, and Dogecoin. Read about it at chainlink news.
Payments in cryptocurrencies are used by PayPal and Square payment systems and one of the largest international banks JP Morgan. Cryptocurrencies tend to be highly volatile. There are specialized cryptocurrency exchanges for investing in cryptocurrencies.
Some countries around the world are launching pilot projects to create national digital currencies based on blockchain technology. China has achieved high results in this regard, with the digital yuan becoming the first digital currency to be adopted in a major global economy.
Central bank digital currencies (CBDC) have also been launched by the Central Bank of the Bahamas (sand dollar), the Eastern Caribbean Central Bank (DCash), and the Central Bank of Nigeria (e-naira). Plans to issue their national digital currencies have been announced by the governments (or central banks) of the Netherlands, Japan, Russia, Kazakhstan, and Ecuador.
Blockchain technology enables smart contracts. Smart contracts are fully digital contacts whose information is protected by encryption. Their key difference is the automatic control and fulfillment of contract clauses. When the conditions are met, the contract is completed automatically, without any additional actions or legal involvement. Smart contracts allow you to track the entire supply chain, which reduces or eliminates the possibility of product counterfeiting or illegal actions with it.
NFT is a type of token where each instance is unique and cannot be replaced or exchanged for another token. NFT indicates ownership of an asset on the blockchain and allows the sale and purchase of virtual objects: music, photographs, paintings, and drawings. According to the statistics of the analytical portal NFTgo, the capitalization of the NFT market is almost $22 billion.
Another area of blockchain application is the gaming industry. Based on cryptocurrency technologies, GameFi-projects (from "game" and "finance"), which combine game mechanics and NFT, are implemented. These are online games that record everything that happens in the game in transactions on a blockchain and allow players to earn real money. Virtual characters and artifacts can be purchased and sold using the blockchain.