9 Industries that could be radically changed by Blockchain
The term Blockchain is mostly associated with cryptocurrencies, but in fact, its application potential is much wider. The technology, originally invented as a means of transferring value directly between users without any intermediaries, could completely change the modern technological state of affairs.
Blockchain usage opportunities in industries other than finance are becoming increasingly widespread and prevalent. There are already thousands of startups on the market whose businesses are based on the distributed ledger technology, and their number is constantly growing.
Here are eight industries which Blockchain can completely transform in the next 5-10 years, radically changing the way we work and live.
Jurisprudence and real estate
Blockchain can be successfully used for storing, processing and exchanging documents in the legal industry, as well as confirming contracts. The growing interest in blockchain is largely due to an understanding of the decentralized technology’s potential.
Just as effective can be the use of Blockchain in real estate. The workflow complexity and high resource costs for procedures such as property registration are typical for this industry. This puts the brakes on this sector’s economic development.
In almost any field in which identity identification and confidentiality play an important role, Blockchain might come into play:
- for document authenticity control;
- personal data protection;
- property right verification;
- accelerating transactions.
The first thing to pay attention to in this context is the possibility of using cryptocurrency to make payments. With this use case, you can see the decentralized currency system’s advantages, thanks to which it is possible to safely and easily transfer money to contractors and remote employees in any country.
Bitcoin allows anyone to send money abroad almost instantly and with relatively low fees. This is especially true for third world countries, whose residents have problems with access to quality banking services.
Cryptocurrencies are created on the basis of Blockchain, which has no borders and allows you to transfer money abroad almost instantly, bypassing intermediaries and getting rid of the need to pay unnecessarily high commissions.
The main barrier for the use of bitcoin as a means of international payment is the legislative status of the cryptocurrency, which in many countries has not yet been determined. When this problem is solved, cryptocurrencies could become very useful for companies that trade on the international market. The use of cryptocurrency for transactions will significantly reduce the delivery time of goods.
Back-office operations and exchanging original contracts in paper form takes a lot of time. The use of cryptographic protection and Blockchain verification mechanisms makes document verification by third parties unnecessary.
Protecting goods against forgery and theft
Technology can be used to track who owns which product at any moment. If a duplicate appears in the Blockchain without proper authorization, it can be easily identified as a fake.
The same applies to finding stolen goods. If a product is stolen or missing, it will be very easy to track, because any subsequent transaction will be recorded in the Blockchain immediately notifying the rightful owner of its location. This is especially important for the purchase of rare or expensive goods.
Customers can easily determine using blockchain whether there is a product in the system and whether it is sold. The technology may also be used to protect against the counterfeiting of medicines.
Supply chain management
International logistics is one of the most complex industries on the planet: to successfully organize it companies need to coordinate the supply of millions of goods across thousands of different channels. Leading players in the logistics industry are exploring ways to improve supply chain management with the help of Blockchain.
For instance, thanks to the blockchain platform, the system can automatically track the movement of individual products or components from the supplier to the consumer and maintain a detailed account of protected records, which store serial numbers, transportation history and other data.
You can monitor product movement through the logistic chain and the state of the goods at each stage. Time stamps fix the date and place of the transaction with reference to a unique product number.
This can significantly reduce time delays and human errors. Also, it could be used to verify the authenticity or legality of the products, tracking them from the very beginning of production.
There are already at least four ways to reform the travel industry. This is a simplified and much safer procedure for passenger identification, improved luggage tracking, more “friendly” loyalty programs and simplified payments between travel agencies and airlines. Most of these issues become reality when using blockchain technology.
For example, you can get through check-in at the airport with a special application. Just touch your finger to the screen, and it will send all your passport data directly to the security service. It would also be possible to use a single loyalty card for all your favorite hotels, car rental companies and air carriers.
Thanks to Blockchain, a revolution in the field of medical services and insurance payment is becoming reality. You must admit that the opportunity to use a single medical insurance around the world would be appreciated by many. Today, complexities like slow payments through a long intermediary chain and difficulties in checking identities hinder this process.
One of the problems that hospitals face is the lack of a reliable platform for storing and exchanging data. The Blockchain technology allows hospitals to safely store medical records and show them only to authorized specialists or patients. This improves data storage security, accuracy and speed of diagnosis.
Intellectual property protection
“Smart contracts” protect the copyright of intellectual property owners and automate online sales, significantly reducing the opportunities for illegal copying and resale of creative products online.
Experimental versions of intellectual property protection systems based on blockchain technology already exist. The system can, within a few seconds, confirm the presence of the property’s exclusive rights and issue a certificate confirming them.
The introduction of a smart contracts system gives users the opportunity to transfer and sell intellectual property rights, as well as carry out other operations.
With the help of Blockchain, startups and any other projects that use crowdfunding as a source of funding will be able to receive investments from any person from anywhere in the world. Moreover, the popularity of this type of fundraising has continued to grow in recent years.
New projects can raise funds by using an ICO and receive funds by issuing tokens that provide a certain value, which can be exchanged for goods, services or cash.
According to recent statistics, various players have solicited almost 800 million dollars through an ICO in 2017. If you consider the fact that this is just the beginning, the figure is really impressive.
New technologies don’t only allow us to better execute old tasks. They create fundamentally new solutions, changing the things we have been familiar with forever. Such changes are already expected in the industries listed in this article in the nearest future.
If data or transactions play an important role in the field you work in, blockchain-based solutions can be successfully used to develop and implement new opportunities.
Gradually, more and more new enterprises will discover the benefits of information transparency and decentralized data storage, which will contribute to an even greater spread of Blockchain technology.
Digital Marketing Manager at LvivityOur services