You have come across the fact that blockchain technology is going to revolutionize the way various industries operate. But what actually this blockchain technology is and how will it disrupt various business sectors?
In simpler terms, blockchain is a decentralized database. Unlike a traditional database, like spreadsheets, running on a single computer, blockchain distributes the spreadsheet data over millions of computers. It utilizes cryptography which makes it virtually impossible to get the information out without the original passcode, once it goes in.
The trust and security in the blockchain are established through code and collaboration, instead of a central authority. Hence, you don’t need a bank anymore to transfer money around the world, no real estate agent to buy a new home, or an escrow account to facilitate the transaction.
All-in-all, you no longer need a central authority to facilitate any kind of transaction. Both the companies developing blockchain technology and the companies developing solutions on blockchain, are utilizing the potential of this disruptive technology to revolutionize nearly every business sector. Here we have mentioned a few prominent ones.
1. Finance And Banking
People usually connect the word “blockchain,” to “Bitcoin,” so it is no surprise that finance and banking top the list. Blockchain technology proves to be a more safe and secure way to store banking records, cheaper, and faster way of money transferring through decentralization, and without any middlemen.
There is a minimal security risk on a blockchain, and the absence of a central “vault” and ledger system also reduces the risk of collapse. It’s like each and every person has its own private money vault that no other individual or the authority can access.
Along with all these benefits, it has some limitations too, like the number of transactions it can handle at a time is comparatively low than traditional systems. Continuous efforts are being made by various blockchain companies to overcome these limitations, and transform the banking and finance industry with this disruptive technology.
Blockchain technology in the healthcare sector can tackle some of the biggest challenges, allowing the doctors and other healthcare providers to easily and securely access your health records. Additionally, your lifesaving info can be accessed immediately by the doctors, at the time of an emergency.
Unlike the older paper records, or even today’s digital health records, that are being created and stored in a number of different files, and systems; with the help of blockchain technology, your health records can be complete, and singular from the time of your birth to death, regardless of the number of times you change insurance or doctors.
3. Real Estate
You must be having the idea about how much paperwork is involved if you have ever sold or bought a home. But the blockchain technology can simplify the whole process and eliminate the need for escrows altogether.
Smart contracts, designed by top blockchain companies can be utilized here, which are executed when certain conditions of the contract are met, including funding, preventing the frauds in the real estate sector.
Besides all this, the documentation can be done and stored securely. Blockchain companies, like Deedcoin, is providing cryptocurrency powered transactions which can reduce the commission rates to as low as 1%.
With the growth of online and distance learning programs worldwide, the need for an independent way also arises, for verifying students’ educational records and transcripts. A system based on blockchain technology can serve as an authorized entity for educational records, enabling employers and educational institutions to securely access students’ records and transcripts.
Also, it can help different universities and institutions around the world to collaborate. The grades, records, and enrolled courses would be instantly and easily transferable among the different universities, eliminating the whole paperwork and the tiring process.
5. Supply chain Management
Supply chain management is the base of the product based industry. The transfer of products requires a lot of intermediaries, consequently increasing costs, and need for more resources, on both a timely and monetary basis. Hence, it is crucial to find alternatives that can speed up the transportation process without compromising the quality of delivery.
Companies developing blockchain solutions, like Smart Contracts, can create effective and automated transportation systems to check authenticities of the supplies. Smart contract systems, implemented with IoT services can ease up the validations and authentication, reduce the intermediaries, and can be helpful in creating a robust system to trace goods, record, and storage.
These are just some major business sectors that are going to significantly disrupt from blockchain technology, as multiple top blockchain companies are trying to capture the early mover advantage in this technology. Apart from these, other industries, like Manufacturing, Retail, Media, Tourism, Legal sectors, and many more, are in line to take advantage of this disruptive technology.
Rapidly expanding use cases of blockchain, rise in tech entrepreneurs, innovators, and blockchain companies, signify the enormous amount of opportunities for blockchain, and for those who are prepared to seize it. But the success is not guaranteed, even for top blockchain companies unless they have a complete understanding, and a clear vision going forward with blockchain technology.