How will Blockchain create wild new opportunities in the business world
Today there are so many talks about blockchain that probably even kids have already heard of it. The technology was invented as the core of Bitcoin cryptocurrency but now we’re observing how businesses are transferring complex operations and even the entire branches to the blockchain.
Besides encrypted financial transactions that occur with no intermediaries, there are lots of other applications of the decentralized ledger. And companies of different industries can benefit from using it, from safe data storage to product authenticity confirmation.
What is Blockchain?
Blockchain is the distributed digital data record which maintains a continuously growing number of transactions, each is hashed and contained in a separate block.
Blocks containing transactions form the chain and can’t be altered or tampered with. Once data/transaction is uploaded on the ledger, it is saved forever with no possibility to be changed or deleted.
Blockchain is a decentralized network meaning there is no centralized authority that would manage it. Since transactions are carried out directly between two autonomous parties, they don’t require any third party to be completed.
Representing an inconvertible and immutable data record, blockchain provides data security, including either user information or data communications, while also enabling network participants to check and monitor the execution of transactions.
In permissioned blockchains, of course, access permissions are strict and strongly regulated because of being intended for enterprise use. Other technology types, on the contrary, are aimed at achieving a higher level of transparency.
As you see, there is a variety of peculiarities that make up the basis of the blockchain. Surely, it has other ones, among the most important are cryptography, consensus mechanism, and mining. Without them, the network functioning would be impossible or be something radically different.
In which industries can blockchain be used?
While everyone is aware of the use of blockchain in cryptocurrency transactions and removing intermediaries, some other applications stay practically unknown. First, take a look at the image below, showing a number of business industries that can apply the technology for various purposes.
Impressive, isn’t it?
1. Healthcare
Considering practical examples, healthcare organizations can leverage the power of blockchain technology by using it as an immutable data storage and data exchange system.
Healthcare organizations can build a secure electronic records system for storing and communicating important information and providing users with the highest levels of trust and reliability. The result is the improved document management and minimization of paperwork.
As far as you know, one of the biggest challenges of healthcare and pharmaceuticals is drug theft and counterfeit. With each small piece of data and each small activity (e.g., user login) being recorded on the ledger, they will get the ability to solve it.
2. Digital rights
Also, blockchain solutions can help people and companies protect their trademarks and digital rights. Content creators, authors, musicians and other digital content contributors will definitely benefit from this technology application.
3. Insurance
Insurance is another business domain that can take advantage of adopting blockchain solutions. What’s more, the use of blockchain is one of the key insurtech technology trends. Home, property, casualty insurance and other branches — blockchain offers perks to all of them.
Travel insurance, for instance, is a broad branch of insurance having various challenges. With blockchain, travel agencies can protect flights of their customers from delays and cancellations.
Using publicly available data of independent trusted providers, payments are carried out automatically when the customer makes a request.
4. Security
Currently, companies of different types and industries, governments, and even the whole countries, are strongly worrying about security issues.
In the security field, blockchain can ensure the minimization of human errors, secure transactions and data communications, protection from illegal food practices in supply chains, and a lot more.
5. Crowdfunding
You’ve probably heard of Ethereum blockchain platform and smart contracts, which represent programs with the terms, inscribed into the lines of code.
Being self-executing contracts, they have great prospects to transform a wide range of operations and bring innovative business models to a variety of industries. Crowdfunding is a visible example.
Projects like Weifund are aiming at the creation of new crowdfunding opportunities. This decentralized platform provides smart contract templates for launching crowdfunding campaigns but users can also implement their owns if needed.
They apply smart contracts to remove intermediaries and allow managers to make personal agreements with users. The integration of smart contracts enables system participants to quickly and securely transfer money, data, and shares.
6. Retail, electronics, pharmaceuticals, supply chains
Product authenticity confirmation and protection from counterfeit are critically important for industries like luxury retail, electronics, pharmaceuticals, and supply chain management. And blockchain can successfully help there too.
By placing special tags on goods and recording them in the distributed ledger, retailers ensure product authenticity and even enable consumers to check it out at any moment.
Customers, in turn, are registered as their official owners with all changes being recorded in the database. The implementation of such a useful business model will allow retail companies to build customer trust, increase client loyalty, and prevent fraud and counterfeit.
Final words
Thus, blockchain technology has a variety of industrial applications. Having been emerged not so long ago, it is going to bring innovative business models to companies of different types.
Adding trust, security, and transparency, blockchain opens the doors to many advantages and helps enterprises improve their business processes and solve a wide range of important tasks and challenges.
