Bitcoin goes up, Ethereum goes down, “A new meme coin just got listed on Binance.” “Buy the dip!” That's usually what comes to mind when you hear about blockchain technology.
Cryptocurrencies like Bitcoin and Ethereum are getting a lot of attention, but that's only one side of the story. Over the years, this technology has evolved from a niche innovation to something much bigger. It now powers countless real-world use cases that go beyond just trading tokens. Think supply chain management, identity verification, healthcare, core banking, gaming, music, and even government services. Blockchain exists now.
This article details the current practical application of blockchain technology, the challenges hindering its development, and its prospects.
Why blockchain matters beyond cryptocurrencies
Core features that drive adoption (decentralization, transparency, immutability)
Decentralization: In a decentralized system, no single entity controls the blockchain network. In other words, valid data that is “true” is not held or determined by one entity, but rather by many network participants. This reduces the risk of corruption and censorship and eliminates single points of failure.
Transparency: Everything recorded on the blockchain, including cryptocurrency transactions, identity information, and supply chain data, is visible to all nodes (participants) on the network. This openness creates a system in which it is impossible to hide wrongdoing.
Immutability: Once data is recorded on the blockchain, it is virtually impossible to change or delete it. Each block is cryptographically linked to the previous block, creating a permanent chain of records. Everyone needs to approve anything to change.
Blockchain as an infrastructure of trust
At its core, blockchain is a distributed ledger that securely stores, replicates, and distributes data across a network of computers so that it's nearly impossible for a single entity to tamper with that information. This is clearly demonstrated with cryptocurrencies. When X sends Bitcoin to Y over the network, the transaction is simultaneously recorded and verified by hundreds or thousands of computers (or nodes) across the network.
What does this mean? Every node on the network attests to the transaction, and transactions cannot be modified individually. A decentralized network becomes a shared source of truth that everyone can trust.
In traditional systems, trust is centralized. Banks store money, governments manage land registries and universities check entitlements. Blockchain reverses this by embedding a layer of trust directly into the system. Contracts are automatically enforced and records cannot be changed, eliminating the need for intermediaries to ensure integrity. The process is much faster than “Trust Element”.
Situations where parties need to coordinate but do not fully trust each other are potential blockchain use cases.
finance and banking
cross-border payments
Cross-border payments through banks can take anywhere from three to five business days to several weeks, incur high fees, and often leave senders and recipients unsure about the whereabouts of their money.
One project that has attempted to bridge this gap is Ripple through decentralized financial technology. ripple neta unified global payments network that connects banks, payment providers, exchanges and businesses.
RippleNet's xCurrent software integrates directly with banks' existing infrastructure, enabling real-time cross-border payments while significantly reducing payment costs.
Banks can also take advantage of Ripple's on-demand liquidity (ODL) service, which eliminates the need to pre-fund accounts in multiple foreign currencies. Traditionally, U.S. banks have been required to maintain accounts containing euros, yen, pesos, and other currencies with foreign banks to process international money transfers.
In ODL, XRP will instead be the bridge currency. When a bank needs to send money internationally, it converts the source currency to XRP, sends that XRP across borders in seconds, and instantly converts it into the destination currency.
SBI Holdings, Bank of America, CIBC, Santander, PNC Bank, and American Express are just a few. financial institution RippleNet is already being used for a variety of services. The network has done the above Trading volume $1.3 trillion In the first half of 2025, we will have active partnerships with more than 300 institutions.
Stellar is a blockchain that will also revolutionize cross-border payments.anchor” and local partners who convert money into digital tokens (on-ramp) and back into digital tokens (off-ramp). In 2022, MoneyGram launched a cryptocurrency-to-cash service on the Stellar blockchain, allowing users to deposit cash and convert it into USDC on Circle. The recipient can then visit a MoneyGram location and withdraw cash or pay via debit card. The entire on-ramp/off-ramp process takes just a few seconds.
Smart contracts in lending and insurance
Whether borrowing or lending, loans and insurance are a big part of the traditional economy. It's finance after all, right? Blockchain playground…
Aave, Compound, and MakerDAO are decentralized blockchain networks that are making waves in the cryptocurrency lending space using smart contracts. Anyone with a cryptocurrency wallet can deposit funds into the liquidity pool and start receiving interest immediately.
Maybe you just want to borrow it. You can do this by posting collateral. Let's say you have $5,000 ETH in your wallet and need $3,000 USDT to cover your bills. Instead of liquidating your ETH position and getting 3,000 USDT, you can deposit your ETH as collateral for USDT.
The ether remains yours, but it is locked until you repay the loan. A default on a loan or a significant decline in the value of the collateral triggers a smart contract that liquidates the collateral to resolve the debt. No banks, no paperwork, no long waiting times.
Insurance is starting to see similar changes. For example, the Lemonade Foundation partnered with Chainlink, Avalanche and others to launch a blockchain-powered parametric insurance product for Kenya's most vulnerable farmers in 2023. of crop protection technology The risks of extreme weather events can be quantified and insurance premiums can be charged to affected farmers by smart contracts based on the data received. Farmers do not have to file insurance claims.
CBDC (Central Bank Digital Currency)
Essentially, a CBDC is not a cryptocurrency, but a government-backed digital version of a country's fiat currency. They may or may not use blockchain or distributed ledger technology (DLT). Technology selection depends on implementation. Central banks have begun considering CBDCs to modernize their payment systems, meet the growing demand for a cashless economy, reduce potential threats posed by unregulated cryptoassets such as stablecoins, and potentially facilitate cross-border payments in the future.
CBDCs built on DLT benefit from tamper-proofing and immutable transaction records, but unlike cryptocurrencies, they operate on permissioned private networks under central government control.
In fact, more than 137 countries around the world are considering CBDCs. China is leading the way with the digital yuan, with billions of dollars already issued since its creation, according to . CBDC tracker. India's pilot e-rupee comes in second place with a circulation of 10.16 billion rupees ($122 million) as of the first quarter of 2025, with the Reserve Bank of India (RBI) reportedly expanding its use cases. The European Central Bank (ECB) has also taken action by signing on. framework agreement We work with service providers for key components of the digital euro.
supply chain management
Tracking products from shipping point to shelf
One of the biggest challenges in supply chain management is data fragmentation. Different parties (manufacturers, suppliers, distributors, retailers) operate on non-integrated systems, creating data silos, increasing inefficiencies and increasing the risk of fraud. Blockchain addresses this problem by creating a single, tamper-proof ledger that everyone can access. This means that every step of a product's journey through the value chain can be recorded and verified in near real-time.
De Beers has this Tracr Blockchain Diamond traceability technology that has tracked over 4 million diamonds from mine to retail store since 2018. Each diamond has a unique digital identifier that captures important attributes such as cut, carat, clarity, and color. As of 2025, all diamonds over 0.5 carats registered with Tracr can be traced to a single country of origin. Consumers can be assured that their diamonds are natural and ethically sourced.
Reducing fraudulent and counterfeit products (food, luxury goods)
Olive oil, wine, and honey are among the most commonly adulterated foods, often diluted with cheaper substitutes or mislabeled to hide their origin. By recording each batch from producer to shelf, blockchain makes finding substitutes much easier.
For example, in Italy Certified Origin Italy leverages Oracle Blockchain to enhance supply chain traceability for Bellucci premium extra virgin olive oil. For wine, producers in Bordeaux and Piedmont are similarly using blockchain to assure buyers that the bottles are authentic and have not been tampered with in transit.
Beyond food, luxury fashion faces similar challenges. To combat counterfeit goods, LVMH and partners such as Prada and Cartier Aura Blockchain Consortiumgiving each luxury product a unique digital certificate. Customers can scan a product's QR or NFC tag to instantly check its origin and ownership history, stopping fake handbags and watches from entering the market.
Case study: IBM Food Trust, Maersk TradeLens
IBM Food Trust is a blockchain-enabled platform designed to address critical food safety issues by enhancing transparency and traceability across the supply chain. The platform allows retailers, wholesalers, suppliers, and food companies to securely share data.
In 2016, Walmart, Nestlé, Dole, and Carrefour partnered with IBM to develop a food traceability system based on Hyperledger Fabric, an open source permissioned blockchain. Before blockchain, tracing the source of a contaminated product such as a sliced mango took nearly seven days, requiring coordination between phone calls, paper records, and siled databases. But with IBM Food Trust, you can achieve the same traceability in 2.2 seconds. This unparalleled level of transparency fosters trust between brands and customers.
Another important project is Maersk's TradeLens, launched in 2018 in partnership with IBM to modernize global transportation. We digitized documents such as bills of lading and customs documents, allowing ports, carriers, and regulators to share one common, trusted version of data. This reduces delays caused by paperwork and manual reconciliation. Despite the buzz around TradeLens; Commercial feasibility constraints Maersk was ultimately forced to shut down in 2023.
Healthcare and medical records
Secure patient data sharing
Typically, patient records may be accessible within an integrated health care network. But as soon as people seek medical services from out-of-network private clinics, independent hospitals, and laboratories, data sharing hits a wall, invariably preventing continuity of care. To make matters worse, there is an ongoing threat of data breaches to sensitive client data.
Blockchain addresses these challenges through decentralized storage and immutable audit trails. Estonian National e-Health system exemplifies this approach, which operates on the principle that health data belongs to the patient. Using KSI blockchain technology, the system secures the health records of more than 1.3 million people and creates an immutable log of all data access. For medical professionals to access a patient's health data, the patient must provide consent. Patients can also track exactly who viewed their information and when.
Prescription Tracking and Fraud Prevention
a WHO report One in ten medicines distributed in low- and middle-income countries are found to be counterfeit, substandard, or missing essential active ingredients. The effects of counterfeit medicines range from pathogenic mutations, overdoses (drug malfunctions), treatment failures, and preventable deaths. Blockchain is actively playing a key role in addressing this threat by creating a transparent, tamper-proof record of medicines passing through the supply chain.
Faskowursta UK-based platform, is one project that combines blockchain and artificial intelligence to address this issue and ensure medicines are authentic, stored properly, and safe to use. Assign each drug a digital compliance tracking token on the blockchain. Through the Consumer Confidence App, patients can scan products to confirm authenticity before purchasing.
When it comes to prescription tracking, Prescription Abuse Rapid Reduction (PAGR) is a blockchain-based prototype designed to record all events related to controlled substances, such as opioids, in a secure, immutable ledger, thereby enhancing traceability and preventing patients from receiving duplicate prescriptions. There are few examples of continued use of PAGR in the recent literature, but it certainly shows what is possible.
Transparency in clinical trials and research
For many years, scientific fraud has been the Achilles heel of clinical trials. Practices such as selective reporting, unpublished changes to research protocols, and data manipulation to achieve particular results continue to undermine confidence in published research results.
Blockchain technology is at the forefront of bridging this trust gap by providing a tamper-proof solution that records clinical trial data, results, and protocol updates in real time, ensuring accountability and verifiability for regulators and researchers.
A practical application example is clinical research on Parkinson's disease in 2024 (NCT03782753), sponsored by King's College London. To ensure transparency, accountability, and security of research data, this study utilized: lastan authentication system built on the Algorand blockchain. LabTrace securely timestamps and records clinical trial data using unique content identifiers, creating an immutable record that ensures data integrity from collection to analysis.
Other emerging prototypes, such as z-TAB and Scrybe, are also exploring the integration of real-time data from wearable devices and data provenance from multiple research sources.
Identity and authentication
Digital identity and self-sovereign identity
Today's online identities still rely on centralized authorities, exposing personal data to privacy risks and breaches. Self-Sovereign Identity (SSI)is built on decentralized identifiers (DIDs) and provides a more secure approach by allowing individuals to store verified credentials in a digital wallet and share them only when needed. Combined with blockchain, SSI gains a decentralized layer of trust that makes identity management more private, verifiable, and user-controlled.
China's RealDID was one of the first large-scale implementations of blockchain-based SSI. Built on a blockchain-based service network (BSN), it allows citizens to verify their identity online without disclosing unnecessary personal information, giving them greater control over how their data is used and shared.
voting system
The Free Republic of Liberland, a small country on the Danube between Serbia and Croatia, exemplifies the use of blockchain in voting systems. On October 1, 2025, the latest parliamentary elections were held in Liberland using a completely public blockchain. Citizens voted using their Liberland Merit (LLM) tokens and the Pergamon algorithm was used to ensure proportional representation based on staked tokens. Election results were verified in real time using Liberland's Election Explorer.
Case study: E-government in Estonia
While Liberland illustrates the experimental side of blockchain voting, Estonia is the best real-world example of blockchain in government.
Estonia uses KSI blockchain to secure government data. KSI creates a digital fingerprint of every record, making tampering instantly detectable. The Estonian Information Systems Authority (RIA) is connecting state institutions to this blockchain security through X-Road, a data exchange platform that enables secure communication of various government databases.
blockchain protects Several important government databases such as medical registries, property registries, business registries, succession registries, digital court systems, surveillance/tracking information systems, state official announcements, and official gazettes. X-Road works together to handle data flows between agencies, and KSI ensures that nothing is changed without permission.
real estate and property rights
Tokenized real estate investment
Blockchain is changing the way real estate is owned and sold. Red Swan CREis a FINRA-regulated marketplace with $9 billion in tokenized assets, and investors stellar blockchain.
Another example is the St. Regis Aspen Resort. It tokenized an 18.9% stake with 18 million Aspen coins, first issued on the Ethereum blockchain and then made available on the Tezos blockchain via the RSRV marketplace. Accredited investors require a minimum investment of $10,000.
To participate, users must purchase digital tokens. This gives you ownership and the right to receive a portion of the rental income or dividends distributed digitally. Fractional models reduce barriers to entry into real estate investing, and blockchain technology increases transparency around ownership records, reduces fraud, and allows assets to be traded.
blockchain land registry
Land title systems in many places remain susceptible to fraud, loss of records, and general inefficiency due to centralized databases. Blockchain technology offers a solution by creating tamper-proof, time-stamped land transaction records that can be independently verified. Whether it's a sale, transfer, or mortgage, everything is recorded on a shared digital ledger.
There are already some pilots and implementations of this. For example, Dubai’s Land Department has moved its title deed management platform to blockchain. In 2025, the company issued its first tokenized fractional ownership certificate.
Elsewhere, Georgia has registered thousands of land titles on blockchain. Sweden has been completing blockchain trials for land registration for a long time. India has also piloted a blockchain-based land registration system in Andhra Pradesh, Telangana, and Pune.
Smart contracts in asset transfer
Smart contracts automate the transfer of assets by executing predefined conditions, such as payment confirmation and document validation, if all parties meet the agreed upon requirements.
Propy provides a real-world example of smart contracts in real estate transfers. The platform allows buyers and sellers to complete real estate transactions online, with smart contracts enforcing key steps such as payment confirmation and document verification. Once the transaction is completed, the transaction details and a copy of the certificate are recorded on the blockchain. At the same time, the title remains recorded within the county to ensure that the appropriate legal requirements are met.
energy and sustainability
peer-to-peer energy trading
As small-scale renewable energy systems become more widespread, homes often generate more electricity than they use. So where does the excess energy go? Can be sold on the market.
While traditional P2P energy trading systems can facilitate these transactions, blockchain-based platforms further streamline the process. Smart contracts automatically match buyers and sellers, transparently record all transactions, and securely process payments without the need for a central authority to oversee the process.
In an experiment conducted by PowerLedger in Fremantle, Western Australia, households used blockchain technology to trade excess energy generated by rooftop solar panels, and participants set their own electricity bills. The platform tracked every transaction in near real-time and created an immutable record on the blockchain. The trial was considered a success at the time and was expanded to more households.
Tracking carbon credits
The carbon offset market is often criticized for double counting and lack of transparency. And how does blockchain seek to solve these problems? By tokenizing carbon credits and recording transactions on an immutable ledger, it increases transparency, reduces fraud, improves efficiency, and increases traceability. This ensures that once credits are used, they cannot be used again.
Toucan Protocol and KlimaDAO have built a blockchain-based registry where carbon credits are tokenized and tracked throughout their lifecycle. Traditional players are also taking notice. In 2025, Verra announced that it had partnered with the Hedera Foundation to use blockchain technology to automate the process of tracking, verifying, and reporting carbon credit projects.
Renewable Energy Certificate (REC)
PowerLedger also works in this area. The company's TraceX system allows RECs to be traded on-chain, effectively integrating the immutable nature of blockchain with traditional energy registry systems (such as M-RETS). In January 2025 alone, TraceX facilitated over 1.2 million renewable energy certificate (REC) transactions.
media, games and entertainment
NFTs and digital ownership
Non-Fungible Tokens (NFTs) have changed the way ownership of digital goods is verified and transferred. An NFT is a unique entry on a blockchain that connects to a specific asset, validating the ownership and time of creation of that asset. This allows creators to sell authentic digital artwork directly to buyers, while allowing buyers to verify originality and ownership history without relying on a third party.
In December 2024, adidas partnered with fitness app STEPN GO to release 1,200 limited edition Ultraboost 5 sneakers exclusively for STEPN Genesis NFT owners. Owners can claim their physical sneakers by connecting their digital wallet to verify NFT ownership and ordering through a dedicated platform that links blockchain credentials to their shipping address.
Music/Art Royalty Tracking
Royalty tracking in music and art is increasingly using blockchain to ensure creators are compensated fairly. In the music space, Royal.io, founded by DJ 3LAU, allows fans to purchase tokens representing a royalty share of a song, with payments processed through smart contracts. Since exiting the marketplace, Royal.io has pivoted to AI-related challenges.
Similarly, platforms like Zora allow creators to earn royalties when their artwork is resold on marketplaces that support creator commissions.
Blockchain in game economy
Blockchain is changing the way players own and trade digital items. Rather than being locked within the game's closed system, blockchain allows players to actually own assets such as cards, skins, and weapons, and sell or trade them on external markets.
Active ecosystems like Immutable, home to games like Gods Unchained and Guild of Guardians, and Ronin, which powers Axie Infinity, demonstrate how this model works in practice. Players can buy and sell verified in-game assets on the open marketplace.
Government and public sector
Blockchain for transparent procurement
Public procurement remains one of the areas of government most prone to inefficiency, fraud and corruption. Factors that hinder transparency in traditional procurement processes include complex bidding procedures, opaque evaluation criteria, and fragmented record-keeping. This makes it difficult to track where public funds go and to hold decision-makers accountable.
Blockchain helps by creating an immutable, time-stamped record of each step in the cycle: bid submission, bid opening, evaluation, award, delivery, and payment. Smart contracts can lock bids until initiation, enforce deadlines, release payments only when milestones are achieved, and automatically record all actions. Role-based access protects sensitive data, and public hashes ensure auditors and citizens know nothing has been changed. Governments can run this as a permissioned network, pinning proofs to the public chain while integrating with existing e-procurement systems via APIs.
Fighting corruption with an unchanging record
Corruption often flourishes when public records can be altered or concealed. Blockchain addresses this problem by creating a permanent, tamper-proof record of transactions. Each entry is cryptographically secured and time-stamped, making tampering detectable and increasing transparency and trust in government systems.
Announced by the Philippine Department of Information and Communication Technology in 2024 eGOVchaina government blockchain designed to enhance the transparency, security, and efficiency of public transactions. The system protects government data from tampering by permanently pinning records on the blockchain, allowing decision-making, payment and procurement processes to be audited with full traceability.
Land Registry and Identification Program
Cities and countries are beginning to use blockchain for land and title records to reduce fraud, increase search speed, and clarify ownership. In November 2024, the City of Baltimore introduced blockchain technology for title searches to give users access to an accurate and immutable record of real estate ownership. This particular implementation is intended to clarify disputes regarding ownership of vacant properties.
Similarly, in 2025, the DRC collaborated with Singapore-based company Duna RWA to launch a blockchain-based land registration pilot program. The goal of this pilot is to reduce corruption and increase transparency in one of the world's most complex real estate markets.
Blockchain challenges in real-world use
Scalability and energy usage
Public blockchains like Bitcoin and Ethereum still process far fewer transactions per second than traditional systems like Visa and Mastercard. Bitcoin processes approximately 7 transactions per second (TPS), while Ethereum processes approximately 15-25 TPS. In contrast, Visa processes an average of 1,700 TPS in daily operations, with peak processing capacity of up to 24,000 TPS. Mastercard processes approximately 5,000 TPS. This begs the question, given Bitcoin's annual energy usage (approximately 127-175 TWh) and limited throughput, can it really scale?
Ethereum transitioned to a Proof-of-Stake consensus mechanism (The Merge) in 2022, reducing energy consumption by almost 100%. But networks continue to struggle with peak-hour congestion and high fees. Layer 2 scaling solutions and alternative blockchains such as Solana and Avalanche are already delivering increased network throughput, but the sustained scalability of global applications, especially those that require real-time payments, is still being tested under real-world conditions.
regulatory wall
Governments around the world are not happy with the lack of control that comes with blockchain. As such, they are carefully evaluating how blockchain intersects with financial regulation, data privacy laws, and consumer protection frameworks.
The European Union will fully implement the Market in Cryptoassets (MiCA) Regulation in 2024, establishing the world's first comprehensive and harmonized legal framework for cryptoassets across all member states. Although MiCA provides some “clarity” to token issuers and service providers, some issues still remain.
For crypto startups, it has become more relevant in terms of compliance costs. As MiCA is region-specific, blockchain-based companies operating in international markets will have to navigate Europe's different regulatory frameworks. Ambiguity remains over the subject matter of NFTs, and “travel rules” requiring identity verification of parties involved in transactions raise privacy concerns for stakeholders. The GDPR’s “right to erasure” principle and blockchain’s inherent “immutability” are battlegrounds that are already resulting in companies opting for expensive and complex alternative solutions.
In other jurisdictions, debates over how to classify digital assets as securities, commodities, or other things continue to create uncertainty, discouraging companies from engaging in large-scale blockchain solutions.
User recruitment and training
For non-technical users, the learning curve of blockchain poses considerable challenges. Managing private keys (if lost, assets are lost forever), navigating cryptocurrency wallets, understanding fluctuating gas prices based on network demand, and understanding concepts like smart contracts create friction that traditional systems don't have.
To overcome these barriers, developers are increasingly building “Web2.5” interfaces that mask the complexity of blockchain. These applications provide a familiar user experience similar to traditional web and mobile apps, while leveraging blockchain technology behind the scenes to deliver benefits such as transparency, immutability, and decentralization. While this improves usability, continuing education is still important to build trust and adoption.
The future of blockchain implementation
When blockchain technology eventually expands beyond its current stage of hype and surveillance, the next stage of adoption will depend on how well it integrates with traditional and emerging technologies.
Fusion with AI and IoT
As AI models process increasingly large datasets, blockchain can act as a layer of trust to ensure that the data fed into those systems has not been tampered with. For example, in the medical field, data streams from wearable devices and hospital equipment can be immutably logged, ensuring that diagnostic AI is processing authentic information.
In smart cities, IoT sensors that monitor traffic, water usage, and energy grids will be linked to blockchain, allowing their reports to be audited in real time. Together, these technologies point to a future where machines not only analyze data but also validate it.
Growth of enterprise blockchain solutions
The infrastructure supporting enterprise blockchains, both permissioned and hybrid, is maturing. Major companies are also entering this field. For example, cloud service providers such as Google and AWS offer Blockchain-as-a-Service platforms that make blockchain capabilities more accessible to businesses.
Interoperability is handled better than ever in new chains, and as companies continue to move beyond siled databases to decentralized digital infrastructures, that interoperability becomes increasingly desirable. This means that in the near future, blockchain will be able to handle complex workflows and coordination.
The integration of blockchain and traditional infrastructure and the development of customized enterprise solutions are also gaining traction. Canton, a privacy-enabled blockchain, is already enabling banks and asset managers to trade and settle tokenized securities quickly and privately. Bank of America, Goldman Sachs, and JPMorgan are all part of this network.
Over the next decade, similar privacy protections and interoperable frameworks will extend far beyond finance, potentially reshaping the way industries share and synchronize data.
Blockchain as invisible infrastructure
Think of it like this: Software companies place little emphasis on the underlying architecture that supports their products. All they focus on is sales and promoting how they are improving usability. Users don't really care whether Microsoft Word is developed in C++ or not. They just want a working word processor. Blockchain technology should achieve this level of invisibility. There, the conversation is not about abstract complexity, but about providing a familiar and highly intuitive user experience.
For example, gamers who trade skins on Immutable rarely think about the underlying blockchain. They want faster transactions and more transparency. Similarly, California residents who receive a digital car title from the DMV are unlikely to believe that Avalanche is the underlying technology.
This suggests that blockchain's future success will not come by standing out as a buzzword, but by quietly strengthening people's trust in the systems they use every day.
