We witnessed the soaring popularity of cryptocurrencies like Bitcoin in late 2017 and early 2018. That’s when Bitcoin and other cryptocurrencies became intensely popular among the investment and financial worlds.
However, blockchain technology is now a quickly growing area of growth for businesses and companies across numerous industries. Tech leader believe this technology will be the most important innovation to emerge over the next 5 to 10 years, impacting industries and companies outside just Crypto and finance.
Without a doubt, blockchain tech has the potential to create new opportunities and drive significant changes across a host of industries – from cybersecurity to banking and healthcare to intellectual property.
While not everyone agrees on how blockchain will transform the various industries worldwide, here is an overview of the impact of this technology globally.
How does Blockchain Work?
A blockchain is an electronically distributed ledger or a decentralized database. We can also refer to it as a list of records accessible to different users. Blockchains utilize cryptography to record, process, and verify each transaction, making them permanent, secure, and transparent.
This technology allows people to share valuable data tamper-proof and secure. That’s why the technology is popular among companies and individuals who don’t want to employ any third-party payment service providers. The technology revolves around three crucial concepts:
Real-time transactions are now possible thanks to this technology, even across borders.
What are the Businesses that are Already Using Blockchain?
We all know that Bitcoin is the most famous example of blockchain technology. But it’s not the only one. Many early adopters of this technology, including big names like Visa, Google, Deloitte, Goldman Sacks, etc. Some renowned businesses that recently adopted blockchain-based services include IBM (for developing a tracking tool to track retain chains and shipping companies), Spotify (for managing copyrights), and Eastman Kodak (for creating storage for stock photos).
According to a research study by TechRepublic, 70% of professionals responded that they had not used blockchain technology. However, 64% revealed that they anticipated considerable advancements in their industry, owing to the blockchain revolution.
Here are the predictions regarding blockchain that recently surfaced in a Trend Insight Report from Gartner, an analyst firm.
Only 10% of enterprises are likely to accomplish any radical transformation because of blockchain through 2022.
In 2022, at least one innovative business based on blockchain will be nearly $10 billion.
The business value, owing to blockchain, is expected to go over $360 billion by 2026. The figure is likely to escalate to $3.1 trillion by 2030.
One of the most favorable projected growth areas for blockchain technology is cybersecurity. Data tampering is a constant challenge for all types of businesses. Thanks to this innovative technology, we can successfully prevent data tampering. That will keep data secure, thereby allowing participants to verify the authenticity of any file.
Just like the internet transformed the IT industry in the 90s and 2000s, blockchain technology will revolutionize the IT and tech sector in the future. Developers and software companies are developing storage and backup software to make it easier to authenticate digital data to end data tampering.
What is the Future of Blockchain Outside Cryptocurrencies?
We all know that blockchain technology has a broad range of potential uses. But while it is famous for its connections to the thriving cryptocurrency world, there are numerous other applications of this innovative technology.
Every day, new ways of utilizing this groundbreaking technology emerge.
Let’s now look at some of the ways global companies and businesses will start using blockchain.
1. Smart Contracts
Another powerful application of blockchain technology is smart contracts. While we refer to them as contracts, they are computer programs that oversee all elements of a contract, from facilitation to execution. In addition, smart contracts can be self-enforcing and self-executing, provided all conditions are met.
Advocates of smart contracts believe that these programs will offer a more automated and safer alternative to traditional contracts. Like all other applications of blockchain technology, smart contracts will also be cheaper and faster than conventional methods.
This area looks highly promising, and the benefits of smart contract technology are limitless. Moreover, this future application will extend to all business fields in which contract law typically applies.
However, there’s one thing to remember. We should not view a smart contract as an ultimate alternative for old-fashioned diligence. Investors should indeed be warned of the many risks of DAO or the Decentralized Autonomous Organization. Yet, smart contracts continue to be one of the most exciting applications of blockchain technology outside of cryptocurrency.
2. Cross-Border Payments
The transfer of value has been both slow and expensive in the past. That’s particularly the case with cross-border payments. A significant reason for these complications is that the transfer procedure requires the involvement of multiple banks in different locations when multiple currencies are involved. Only then the intended recipients can collect their funds. Although a few services facilitate this process, most are too expensive.
This innovative technology holds the potential to offer a cheaper, reliable, and faster alternative. For example, typical money remittance costs are as high as 20% of the transfer amount. However, blockchain guarantees significantly low costs. Currently, there are many hurdles to be passed, such as security concerns and regulation of cryptocurrencies in various parts of the globe. Even so, high-speed and cheaper cross-border payments are among the most talked-about applications of this technology.
3. Supply Chain
One of the most critical factors for any business to succeed is its supply chain. The technology is operational in various industries to ensure efficiency and keep tabs on supply chains. That means there would be less human work and fewer chances of errors from a crucial and complex process.
When it comes to monitoring supply chains, blockchain can be significantly helpful. For example, businesses can determine inefficiencies by eliminating paper-based trails within their supply chains. In addition, blockchain has the potential to allow businesses and customers to track the progress of products from a quality-control perspective.
4. Identity Management
A crucial and problematic outcome of the internet is identity security. As diligent as many organizations and individuals are in protecting private information and maintaining their online identities, there will always be hackers looking to steal profit from digital assets. This technology is already demonstrating the potential for revolutionizing the conventional methods of securing identities online.
Blockchain guarantees the maximum level of security because of the independent verification processes which take place on a blockchain network throughout member computers. For example, in the case of digital currency, the verification process helps approve transaction blocks before their addition to the chain.
We can use the same verification method for various other verification procedures. For example, this technology could help maintain voter information for a more efficient and transparent electoral process. Blockchain could be used to secure and transfer data across systems and platforms. The same technology could protect and maintain records or titles, real estate ownership, and more.
5. Royalty Protection and Copyright
Internet access is growing rapidly and globally. However, ownership and copyright laws on content (such as music) are still quite vague. Blockchain can strengthen these laws, especially for digital content downloads. That will ensure creators and artists get their fair share of all music they sell online. One of the best applications of blockchain technology will be a fair and transparent distribution of royalty to content creators and artists.
6. Healthcare
Health data, appropriate for blockchain, can range from basic medical history to general information. For instance, gender, age, vital signs, and immunization history. Since medical professionals can’t use this information to identify patients, hospitals and medical institutions need to store it on a shared blockchain to guarantee easy access. In addition, numerous individuals can access it without any undue privacy concerns.
Now that specialized connected medical devices are becoming increasingly linked to an individual’s health record; this revolutionary technology can efficiently connect these devices with that record. In addition, these devices can store data generated on a healthcare blockchain and attach it with personal medical records. A significant issue when dealing with connected medical devices is the siloing of data they generate. However, blockchain could serve as bridges to those silos.
7. Digital Voting
Blockchain will also help prevent voter fraud. The technology allows voters to vote digitally and makes the process transparent. Regulators can easily see if there is any change on the network. The convenience of digital voting and the immutability of blockchain can make it easier to monitor the transparency of voting sessions.
8. Non-Profit Organizations
Blockchain has the potential to resolve the anti-trust problems most non-profit agencies and charities face today. Blockchain can show donors that these organizations use their donations as intended through complete transparency. In addition, blockchain tech can also help non-profit organizations to manage their funds and resources better.
9. Food Safety
Now that’s another fascinating use of blockchain. The technology can trace food from its origin to the supermarket and the consumers. The blockchain data is immutable, which means we can easily trace the food transportation process. to trace food from its origin to your plate. In addition, should there be a food-borne illness, this technology can also help us trace the source of contaminated food.
10. Title Transfers, Land and Real Estate
On average, homeowners sell their homes every five to seven years. Research findings also reveal that the average person moves to a new house roughly twelve times during their lifetime.
This frequent movement makes real estate the perfect area for blockchain applications. The technology would accelerate home sales by quickly verifying finances and reducing fraudulent activities.
Another primary goal of this technology is to eliminate paperwork and eliminate the confusion involved with paper trails. For example, we need to receive or transfer a title whenever we sell or buy a car, a house, or a piece of land. Since blockchain can store titles on its network, handling any paperwork is unnecessary. That means the technology allows a transparent view of the entire transfer process and presents a clearer picture of legal ownership.
11. Compliance and Tax Regulation
Another area that can benefit from the immutability and transparency of blockchain is tax regulation and compliance. For instance, marijuana companies can adopt blockchain for recording their sales. That will help them prove that they abide by all federal, state, or local rules. In addition, their sales will be clear proof for the IRS to prove that they paid their taxes to the federal government.
12. Unalterable Data Backup
Blockchain is the perfect way to store data, but it is also the best to secure data. While cloud storage systems serve as a go-to source for storing and protecting data, they can be accessible to hackers or vulnerable to infrastructure complications.
We can resolve these issues by using blockchain as a backup source for any data or cloud centers.
13. Internet of Things
Blockchain is set to revolutionize practices in numerous IoT sectors. Some of these include:
Asset Tracking: As an alternative to cloud solutions, blockchain can monitor the machinery and assets for recording output and activity.
The Supply Chain: Blockchain can track the location of goods, right from shipping, to ensure that they are within specified conditions.
Final Thoughts
Although blockchain is more famous for its role in promoting digital currencies across the globe, there are several other applications of this technology. We listed some of those in this list so you can know more about how it works and about its benefits.
Individuals from the investment world and financial advisors will likely devise new methods to complete with blockchain technology, whether it is connected with a specific cryptocurrency or if we utilize it any number of other applications.
About The Author
Amber Alvi
Amber is a seasoned content marketer who is enthusiastic about technology, web design, mobile apps, and everything digital. With over 15 years of experience in the content creation business, Amber loves exploring ideas from different niches, especially technology and online marketing.
