Can blockchain be used without cryptocurrency?
Even though Bitcoin (BTC) is the most known application of a decentralized ledger or blockchain, there is a wide range of other uses of blockchain technology. For instance, blockchain technology can be utilized in various financial services including remittances, digital assets and online payments because it enables payments to be settled without a bank or other middleman.
Furthermore, the next generation of internet interaction systems including smart contracts, reputation systems, public services, the Internet of Things (IoT) and security services are among blockchain technology’s most promising applications.
A blockchain without cryptocurrency refers to a distributed ledger that keeps track of the status of a shared database across numerous users. The database can include the history of cryptocurrency transactions or confidential voting data related to elections, for example, that cannot be updated or deleted once added.
Therefore, blockchain technology is not only relevant to cryptocurrencies. Blockchain, however, is mainly concerned with the decentralized storage of information and the consensus of particular digital assets, which can or cannot be cryptocurrencies. So, can blockchain be used for anything?
Ideally, blockchain technology has the potential to replace business models that rely on third parties and centralized systems for trust. For instance, NFTs were initially introduced on the Ethereum network in late 2017 and are one of the disruptive innovations based on blockchain — beyond cryptocurrencies — that influence intellectual property. However, be aware of the risks and returns associated with NFTs before making any investments.