The buzzword and technology trend for 2017 was - BLOCKCHAIN, and it will continue to be so for 2018. An open ledger technology that began with Bitcoin and has been around for years seems to have entered mainstream conversation lately. It is basically a global public database/ledger that stores detailed information about every transaction. It is an open transaction that enables companies to know who owns the document at any given time and also cites the proof that the document is not altered in anyway.
This proved to be extremely vital for Bitcoin as it ensured that the same money won’t be spent twice, unless a third-party plunges in. The most unique feature of Blockchain is that the ledger isn’t stored on one computer instead it’s shared across a huge number of computers which allows everyone in the network to have access to it. Given the reliability and accountability Blockchain entails, it has today become a customary element for development of financial technologies. However, other sectors are recognizing its influence and structural integrity and are keen on imbibing it.
Following are the industries that could be transformed by Blockchain technology or have its indelible imprint in near future.
List of Major Industries Blockchain Technology is Poised to Disrupt:
- Banking
Blockchain can inject enhanced accuracy and information sharing into a structured and complex financial services ecosystem such as a bank by being a digitized and a tamper-proof ledger. Banks are investing the maximum in Blockchain startups, for example, R3 CEV, a consortium of global financial institutions collaborating to develop a platform and commercial applications for distributed ledger technology. The platform has been called Corda and it meets the highest standards in the banking industry but will be applicable to any commercial scenario.
This is what Blockchain will do for the banking and financial sector -
1.1 Fraud Reduction
The potential of Blockchain technology to reduce fraud is getting a lot of attention from the financial world because 45% of financial intermediaries suffer from financial crimes every year. Most banking systems are built on centralized databases that are vulnerable to cyberattacks where the hackers only have to breach one system to have full access. The Blockchain technology would eliminate some of these crimes.
1.2 Smart Contracts
Blockchains are capable of storing any kind of digital information which can be computer codes as well. These codes can be executed when two or more parties enter their keys enabling smart contracts. Once a set of criteria has been adhered to these codes can be programmed to create contracts or execute financial transactions.
1.3 Know Your Customer (KYC)
Financial institutions spend millions to keep up with KYC and customer due diligence regulations annually. Blockchain would allow verification of one client by one organization to be accessed by other organizations so the KYC process wouldn’t have to start from scratch. This would bring down the administrative costs for compliance departments significantly.
1.4 Trading Platforms
Operational errors and fraud would be reduced if trading platforms started relying on Blockchain technology. NASDAQ and the Australian Securities Exchange are already exploring Blockchain solutions to reduce costs and raise efficiencies.
1.5 Payments
Blockchain disruption will eliminate many of the existing intermediaries in the payment processing system. This will bring in fortified security and lower costs for banks to process payments between banks, among organisations and their clients.
- HEALTHCARE
Healthcare organisations face the challenge of secure sharing of data across platforms, which is an impediment in the pursuit of delivering cost-effective care. Employing blockchain technology could allow hospitals, payers, and other parties in the healthcare value chain to share access to their networks without compromising data security.
For example, Tierion, a Blockchain startup has built a data storage and verification platform for healthcare. Also, Blockchain Company GEM and Tierion have partnered with Philips Healthcare in the Philips Blockchain Lab.
- RIDE SHARING
Taxi apps like Uber, Hailo and Lyft operate as dispatching centres that use algorithms to control their drivers and tariffs. Here, Blockchain could introduce a wave of new options where both drivers and users could create a more user-driven and value-based marketplace because of the distributed ledger.
For example, Arcade City, a startup with a ride sharing app for people where users can select their driver, negotiate payment and enjoy personalized service. So, Arcade City is basically functioning in a similar fashion to that of other e-hail taxi apps but allows drivers to set their fares (in place of a corporate) with Blockchain recording all transactions. Arcade takes a percentage of the rider fares and helps drivers build their customer base along with providing value based services like deliveries and roadside assistance.
- RETAIL
Blockchain could change the existing dynamic of the marketplace by decentralizing the trust. For instance in case of Amazon, its success is dependent on its consumers’ sense of trust; here Blockchain will attach that trust to sellers than to site themselves.
There are startups that are developing decentralized Blockchain utilities to connect buyers and sellers, without a middleman and the related charges.At these utilities customers purchase goods using any of the available cryptocurrencies, and sellers are paid in Bitcoin with all data distributed across the global network instead of being stored in a central database.
- The Internet of Things (IoT)
Blockchain will prove to be a security fabric for IoT, it will give companies invested in this sector the confidence that their IoT devices won’t be compromised. With the rise of IoT severe issues will surface when millions of devices would want to interact among themselves or their users and with the current IoT ecosystem relying on the server/client paradigm, these challenges will be difficult to meet.
Many tech firms are exploring possibilities of resolving these problems with Blockchain technology. They are considering importing its core concept of peer to peer messaging devoid of trust a complete possibility as has been proven in the financial realm through cryptocurrencies such as Bitcoin. For IoT networks Blockchain will allow billions of devices to share the same network without the need for auxiliary resources. IoT will definitely entail Blockchain for a future that involves decentralized and autonomous networks.
The Next Industries in Queue:
Apart from the above listed sectors, industries like Music distribution, Cloud Storage, Supply Chain Management and several others will also harness the power of Blockchain technology in innovative ways. If you too are thinking of riding the Blockchain wave for your business, don’t skip exploring the list of top blockchain technology companies curated by GoodFirms.
