Blockchain technology has been in the business scene for years, and its popularity continues to grow exponentially. Numerous industries have already enjoyed the perks it provides and the way it revolutionizes day-to-day operations. So why do more and more companies choose blockchain?
Worldwide spending on blockchain application development services is projected to reach almost $19bn by 2024. The global distributed ledger market is dominated by supply chain audits which is forecast to grow to more than $103bn by 2030. Revenue in the DeFi field is expected to show an annual growth rate (CAGR 2023-2027) of 19.60% resulting in a projected total amount of US$34,700m by 2027.
Blockchain is an advanced database mechanism that facilitates the transparent process of recording transactions and sharing information within a business network.
The concept of blockchain is similar to the concept of databases. But the key difference lies in the way the data is structured and accessed. A blockchain database stores information in blocks that are linked together via cryptography, forming an irreversible chain. That is where the name of the technology comes from. The information cannot be altered or deleted without the consent of the network, which makes blockchain an immutable ledger. This means that it’s perfect for tracking transactions, accounts, payments, orders and much more. To sum up, blockchain provides immediate, transparent and shared information only to permissioned network users.
Due to the increased transparency and traceability, blockchain has been widely used in financial services and banking. But the use cases are not just limited to them. Below you can find how blockchain technology can be successfully used in a variety of industries.
Naturally, the first use case that comes to mind when you hear the word blockchain is fintech. Financial institutions like banks and stock exchanges use it in their daily operations like market trading, managing accounts, carrying out transactions and online payments. Blockchain also presents certain benefits regarding fraud prevention, transparency and their clients’ security.
Cross border and cross bank transfers can be made much easier and faster thanks to blockchain. Usually these processes entail intermediaries, lengthy document filling procedures and processing fees. Generally it can take days and even weeks. Using blockchain helps eliminate the documents, third parties and fees, and reduces the time period to just a few minutes.
The same applies to customer transactions. With blockchain the money can be transferred within minutes or even seconds – regardless of the time of day and week.
There are plenty of ways how blockchain can benefit the healthcare industry. Keeping electronic health records is perhaps the most popular use case of blockchain in healthcare. Blockchain can guarantee doctors and patients easy access to medical data, at the same time granting its security. Because keeping personal health data safe is one of the main challenges that healthcare faces today.
Furthermore, blockchain provides great information transparency, which can help tackle illegal drug sales and insurance fraud.
Real estate has always been the industry where various middlemen were at play – agents, lenders, property managers, brokers. Implementing blockchain can help eliminate them, increasing accountability and transparency along the way. What is more, this will reduce costs and provide more opportunities for homeowners and investors.
Logistics’ need for trackable, transparent records can be addressed with the help of blockchain. Logistics and carrier companies, customs and warehouses can all benefit from using a shared decentralized database available at any time.
Suppliers must prove that the goods they produce and sell comply with all the required regulations. Consumers, in turn, want to know where the product came from and how it was produced. Blockchain can help in maintaining this data and sharing the database with the parties involved.
Using blockchain technology can result in substantially improved traceability of the shipments and transportation documents. Which, in its turn, will combat delays, fraud, corruption.
Decentralization means that there are no third parties or intermediaries between the participants of a transaction or any other interaction. In other words, the authority, control and decision-making process are transferred from a centralized entity to a distributed network.
Traditional databases can apply censorship towards the users. But in blockchain it is impossible, as it’s controlled by no parties.
Since blockchain is decentralized, any user can verify data recorded into the blockchain. And because the network is immutable, everyone can see the information as it is, without any alterations. Blockchain allows easy tracing of any data and any changes in the network, making the system completely transparent.
Blockchain provides a very high level of security, using the three principles of cryptography, decentralization, and consensus.
As a member of blockchain, you are guaranteed that you receive accurate and timely data and that the information you share is visible only by the users you gave access to.
Financial organizations conduct transactions only during limited working hours, which may not always be convenient. In addition, standard banking procedures are quite time-consuming, especially if third-party regulatory bodies are involved. Blockchain users don’t need to wait for the right moment to transfer money – it can be done within seconds at any time of the day.
There are several ways how the costs can be reduced. Within the blockchain there is no need for third-party verification or intermediaries, as the participants share the information and perform transactions directly. And, because every participant of a transaction has a copy of a shared ledger, transaction efforts are minimized.
The potential of blockchain technology for various industries is almost endless, with new applications for this technology being discovered every day. Considering the benefits the technology has to offer, blockchain revolutionizes more industries in the upcoming future, reducing gaps between customers and companies and increasing security of data.