Every Industry Is Banking On Blockchain Technology
84% believe that blockchain technology will soon become mainstream. But how? Find out more details in this article.
In a recent Deloitte report, 69% of executives reported that they plan on replacing their current systems of record-keeping with blockchain technology. Another 84% believe that blockchain technology will soon become mainstream.
The blockchain record-keeping industry is also expected to reach a market valuation of over $60 billion by the year 2024, according to forecasts by Wintergreen Research. With such exponential growth on the horizon, it is now imperative to understand the benefits and use-cases of blockchain and cryptocurrency technologies.
At the end of 2014, there were just over 2 million crypto wallets in use. There are now more than 34 million wallets worldwide. Due to its innate qualities of security, decentralization, and transparency, blockchain technology has found seamless integration in industries ranging from cryptocurrency and finance to health, government planning, automation, security, and more.
Benefits Of Blockchain Technology
Since blockchain effectively removes any middlemen and is self-regulated, transaction fees are virtually nil. This is an important consideration for use-cases such as cross-border transactions on the banking network that are currently extremely expensive for both large corporations and individuals.
The absence of third parties presents yet another important advantage, namely speed. A cryptocurrency transaction, for instance, can be completed in as little as a few minutes. This is in stark contrast to SWIFT transactions on the traditional banking infrastructure that can take several days to settle.
Data once recorded to a blockchain cannot be modified in the future, guaranteeing a permanent storage medium. Governments around the world have suggested leveraging this feature to store everything from degree certificates to land ownership records in a safe and fraud-resistant manner.
Blockchain also offers new use-cases in industries where identity management is crucial, like healthcare. In many countries, healthcare providers currently rely on a slew of archaic technologies that could compromise the privacy of patients. Given that the United States’ Health Insurance Portability and Accountability Act (HIPAA) requires medical information to be safeguarded at all times, blockchain can allow insurance and healthcare providers to protect themselves from security breaches.
Blockchain Use-Cases In Different Industries
Mismatching and counterfeit records is a common problem in the supply chain and other financially-linked industries. Given that these practices are only possible due to the prevalence of manual human input, the blockchain used in conjunction with automation-related technologies could reduce instances of fraud or errors.
Claims Processing / Insurance
In 2017, $1.2 trillion worth of insurance premiums were processed. However, a large percentage of those premiums had to be filed a second time because they were initially rejected due to error in sharing and updating records — another problem that can be solved by a blockchain-based application.
There are over 100 use-cases of blockchain in the energy sector with the biggest being P2P energy sharing and microgrids. With the rise of renewable energy sources such as solar, many households are increasingly moving away from the traditional grid infrastructure. A blockchain-based application could allow those with excess solar output to sell their energy on a decentralized marketplace, effectively setting up a peer-to-peer system for power generation.
Alluva is another decentralized platform that aims to boost adoption in the blockchain and cryptocurrency sector by building the world’s largest analyst platform.
Blockchain and cryptocurrency will undoubtedly be some of the biggest market driving forces going forward, but it remains to be seen which use-cases will end up being the most prominent over the next few years. With large tech giants, governments, banks, institutions, and even hedge funds now entering the blockchain space, however, it won’t be long before the technology goes mainstream.
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