There’s a lot more to blockchain technology than just cryptocurrency. We’ve already seen countless industries changed forever, thanks to secure, transparent and decentralized systems.
In this article, we’ll take a look at how blockchain technology is increasing efficiency, trust and innovation in numerous areas of business. We’ll also ponder the future, speculating as to which other industries could be next in line for improvement.
Finance
The world of finance is perhaps the least surprising industry to have been disrupted by blockchain. But the concept of Decentralized Finance, or “DeFi”, is bringing lots of value to the industry.
International Payments
Cross-border payments is probably the most notable sector to have benefited from blockchain tech. Traditional systems are incredibly slow, involving numerous payment processors and clearing houses. The many processes involved don’t just take time, but they run up costs, too.
However, the decentralized nature of blockchain technology allows finance companies to strip back many layers of administration, increasing efficiency. What’s more, many of the processes can niw be automated, thanks to smart contracts, speeding transactions up while reducing costs.
Security
On a similar note, blockchain technology is increasing security in the world of banking. Immutable by its very nature, fraudulent transactions are all but impossible to complete.
By incorporating such transparent and unalterable ledgers into every day systems, we’re seeing improved identity verification processes and much less fraud as a result.
Financial Inclusion
DeFi platforms also allow for greater financial inclusion. There are many countries where people don’t even own a bank account, let alone a credit card. But it’s now possible to shop or pay bills online, with nothing more than an internet connection and a crypto wallet.
Logistics
Famously plagued by inefficiency, logistics is another area that’s already seen huge improvements thanks to blockchain.
Visibility
The biggest impact is undoubtedly in the area of supply chain visibility. The real-time tracking of goods through manufacturers, warehouses, brokers and shipping companies is massively reducing delays, as well as human errors.
Blockchain ledgers provide end-to-end transparency, assisting consumers and businesses alike to verify the condition and authenticity of their products. Not only can this eliminate bottlenecks and improve efficiency. But it encourages better coordination between all of the various moving parts of the logistical journey.
Theft and Fraud
Another area where blockchain-based logistics automation is having a major impact is that of theft prevention. Every step of the journey is immutably timestamped, making it practically impossible for records to be doctored.
Where high-end goods like electronics are concerned, or any product to which stricter regulatory requirements are applied, this technology is proving invaluable.
Fashion
This might seem a little more out of left field, but the future of fashion also appears to be one that’s full of blockchain.
Ethics and Environment
As we’ve already seen, supply chain transparency can be improved tremendously through the application of this technology. And today’s consumers, who care deeply about environmental sustainability and ethical sourcing, really want to know about a product’s entire life story.
From the materials used in production, to the item’s overall carbon footprint, blockchain systems are already helping major brands like H&M to tell customers more about their values and practices.
Counterfeiting
Another area where blockchain is having a major impact, is the world high-end fashion and luxury goods. These labels are so often the victim of counterfeiting, but the ability to produce a digital certificate of authenticity is game-changing technology.
Digital Trends
Given what’s happened in the NFT space, you could argue that digital fashion has already come and gone. But the trend for trading virtual assets hasn’t quite disappeared entirely, and many top fashion brands are still experimenting with Non-Fungible Tokens of their own.
There appears to still be scope for an entire marketplace of limited edition digital items, especially where the most exclusive fashion houses are concerned.
Real Estate
Another sector which famously involves strings of intermediaries, the world of real estate was always going to be ripe for blockchain-based improvement.
By removing much of the red tape created by brokers, lawyers and banks, purchasing property can be made much less painful.
Smart Contracts
Once again, smart contracts are at the heart of much of the action. Self-executing agreements are ideal for reducing the need for notaries and legal advisors, which slow processes down interminably.
In addition, the transparency offered by blockchain ensures that record keeping is both tamper-proof and easy to verify, with no need for paper-based deeds and titles.
Tokenization
Another interesting development is the tokenization of assets, meaning that properties can essentially be split into shares. Given how difficult it can be for younger people to get a foot on the property ladder, this could be life-changing for some.
Regardless, it opens up investment opportunities to a much wider range of potential buyers, making ownership far more inclusive.
Online Gambling
The online gambling, or “iGaming” sector, was among the earliest adopters of cryptocurrency and blockchain technology. As such, this is perhaps the one industry that’s been changed the most.
Not only do digital payment solutions reduce the amount of time taken to deposit and withdraw at a casino or sportsbook, but there are countless other benefits, too.
Identity Verification
For a start, increasingly strict regulatory requirements mean that gambling companies are coming under more and more pressure from governments to be seen to be acting responsibly.
A big part of this is identity verification; partly to help tackle crime, such as money laundering and identity fraud, but also to prevent underage gambling. It’s also helpful in spotting players who might have previously self-excluded due to a gambling problem.
If such players are able to circumvent their exclusion, by creating new accounts, that’s obviously an issue for the individual. But given the possibility of multi-million dollar fines, it’s potentially a big deal for the company.
Blockchain technology is proving extremely useful in all of these areas, by carrying out the increasingly complex and intrusive KYC (Know Your Customer) checks demanded by the regulators.
Fairness and Transparency
Provably Fair gambling games are another fantastic example of how blockchains are being put to great use in the world of iGaming.
Not only does this technology ensure that games are truly random and completely tamper-proof. But the resulting process is stored transparently on the ledger for all to see, instantly eliminating all accusations that online gambling is rigged.
Affiliate Marketing
Although it’s yet to really be embraced by iGaming affiliates, blockchain technology could easily improve this area. A frequent complaint is that gambling companies employ underhand tricks to take customers away from their affiliates in order to stop paying their agreed revenue share.
A simple system of smart contracts could easily identify who first recruited the player and tag them accordingly. Naturally, this would be stored transparently on the ledger forever. Such a setup could also help affiliates to pay content creators, with an iGaming writer or streamer receiving automatic payments.
Healthcare
Patient privacy is a hugely important area of healthcare. As you might expect, blockchain technology is also disrupting things in this particular space, improving data security and, in turn, overall healthcare practices.
Improved Patient Records
The management of patient data is the biggest fix of all. Traditionally, records are stored in multiple silos across different providers, making it difficult to easily build up a bigger picture view of a client’s medical history.
However, the implementation of a digital ledger eliminates this problem entirely, with real-time access to full records. It can reduce the accidental duplication of medical testing, for instance, and lead to quicker and more accurate diagnoses.
Pharmaceuticals
Counterfeit drugs are a significant problem in the pharmaceutical industry, with supply chains often targeted. As we’ve already discussed, improved supply chain management can remove that particular challenge entirely.
In addition, the introduction of digital authentication certificates would greatly reduce the possibility of encountering fake medicines.
Payments
The application of smart contracts improves all kinds of sluggish processes, and health insurance payouts are notoriously slow. The ability to automatically pay out once a predetermined set of conditions have been met wouldn’t just be quicker and more efficient – it could potentially save lives as a result.
Identity Theft
Cybercriminals often target healthcare organizations, due to the vast amounts of valuable data stored in patient’s files. But a decentralized and fully encrypted system would be infinitely more secure than the current methods used. The way things are progressing, it’s only a matter of time before blockchain solutions are more widely implemented.
What Else is Next?
A youngster embarking upon a career in blockchain could potentially see all kinds of doors opened up, as the technology continues to transform countless industries across the globe.
By reducing fraud, increasing efficiency and making processes more transparent, the advantages of blockchain are almost endless. It’s hard to imagine a future in which technology isn’t deeply embedded into all areas of everyday life.
Here are some other sectors that could potentially be the next in line to embrace blockchain technology and its benefits.
Education
By issuing digital credentials, there would be no need for paper diplomas and doctorates. The process of sharing qualifications with potential employers could be simplified and made far more transparent, removing possible fraud.
Additionally, digital certification of intellectual property may help to fight plagiarism of research papers or essays. Detailed revision tracking would also help to prevent political vandalism and the rewriting of history.
Arts
NFTs could theoretically allow creators a new revenue channel, by further monetizing their works. For instance, artists could potentially add resale royalties, or release limited edition releases that would help to increase engagement among their buyers.
In addition, intellectual property rights would be protected and plagiarism reduced. While smart contracts could easily allow for more efficient tracking and payment of royalties.
Politics
In an era where voter turnout is at an all-time low, blockchain voting could possibly shake things up. By introducing a decentralized ledger, votes can be securely recorded and verified, with no need for paper.
This is also scalable, making remote voting much more secure than mail-in ballots, which are easy to tamper with. It would also reduce election fraud like vote buying, as it would be almost impossible to impersonate another voter.
