How blockchain technology can be used outside the financial sector

Blockchain first came on the scene as the technology that secures cryptocurrencies like Bitcoin and Ethereum. While everyone got in on the crypto-craze it seems, no one really understood what blockchain was. Blockchain is what makes cryptocurrency possible, but it’s not the same thing.

It is actually a method of structuring and verifying data consisting of a decentralized, public ledger of chronological transactions. Each step of a transaction must be authorized and carried out before the next step can occur, and no single party owns the record of transactions, drastically reducing chances of tampering.

And while blockchain is seeing the most adoption inside the financial sector — after all, our money is usually at the top of our priorities, especially when it comes to security — the technology has potential to impact multiple industries. Let’s examine just a few.

Healthcare — The only thing we care about protecting as much as our financial information is our personal health information. Health data privacy is heavily regulated both by government and by private institutions, as it should be, but complying with those regulations can sometimes negatively impact patient care. Without explicit permission, different providers cannot share information about a single patient, meaning they can lose insight into how best to treat that patient.

Blockchain could help eliminate security issues with regard to health data, allowing disparate care providers to share access to their information networks without compromising privacy. Facilitating collaboration between physicians and specialists leads to faster, more accurate diagnoses, more effective treatment plans and an overall better patient experience.

Government — The security of data and communications at all levels of government is a paramount concern. Government is still one of the most paper-heavy environments in a world gone mostly digital, and with endless structural hierarchies and red tape, it’s a wonder anything gets done. Not to mention, it’s an environment ripe for fraud and data leaks.

Blockchain is already being used to create infrastructures within government institutions that decentralize access to information and ensure end-to-end security of processes and the data involved in them. This means more transparency and accountability, smaller stacks of paperwork, less fraud and an overall increase in speed and efficiency.

Arts and Entertainment — Intellectual property, licensing, royalties, copyrights…the sharing and purchasing of creative work, be it music, film, TV, writing or visual art, is a complex area. With dozens of distribution channels, and many illegal content sharing platforms, it is often difficult to ensure fair compensation for creators, as well as the cut for everyone involved in making art accessible.

Blockchain utilizes smart contracts, which self-execute without the need for a third party verifier or middleman. These smart contracts can be used to automatically distribute compensation to the correct parties, based on predetermined licensing agreements, whenever a piece of art is purchased. This ensures that production companies and distribution platforms get their share of profits but don’t monopolize them.

As mentioned above, these are just a few of the industries where blockchain is making an impact. Stock trading, car sales, academia, energy, nonprofits and dozens of other industries are experimenting with blockchain’s superior security and transaction processing capabilities.

It is still uncertain whether cryptocurrency will be a blip or will revolutionize the way we manage our finances, but it’s safe to assume that blockchain will endure beyond any bubble.