The Blockchain Economy — Rewriting the Society
Businesses across the globe have acknowledged that digital is the way to go especially in their day-to-day processes. With numerous changes coming up in the business world, major industries in the world have embraced cryptocurrency as the future. Throughout 2017, Bitcoin alongside other cryptocurrencies took the world by storm. Blockchain, the technology behind Bitcoin, impacted the world equally. Blockchain involves carrying identical copies of a transaction ledger throughout a network. Therefore, members of the network access the same entries through their computers. Here is a look at some of the industries that are being revolutionized by blockchain technology.
Finance
Blockchain has undoubtedly changed how the world operates. In 2015, OMX Group and Nasdaq joined Chain, a blockchain startup, to test the trading of shares in the Nasdaq private market. Blockchain increased the accuracy of trading while reducing the settlement process. Blockchain also sped up payments especially across borders while reducing the cost significantly. Additionally, Blockchain has brought about smart contracts where commercial transactions and agreements can be conducted automatically. Blockchain technologies have not only increased efficiency but also reduced the operational costs for many businesses. In addition to digital currencies such as Bitcoin, businesses can operate across borders without challenges.
“Blockchain has so much potential… there are thousands of blockchain use cases.”
Chris Huls, Rabobank
Knowledge Sharing
As noted earlier, blockchain technology is quickly expanding beyond bitcoin through the concept of decentralization. What may ultimately occur is that peer-to-peer protocols, rather than companies, will disrupt major web services created in the last decade.
Centralized systems represent single points of failure controlled by central authorities. Individuals relying on these systems must trust that authorities will not abuse their power to forward self-serving agendas. Yet, resisting the temptation to abuse power is difficult in practice for even the most respected authorities. Knowledge sharing is one domain in which decentralization will disrupt existing web services.
There are various blockchain-based platforms that seek to reinvent the knowledge sharing space, and one such platform is the Lunyr platform. The Lunyr platform is built on top of Ethereum and is therefore decentralized, censorship-resistant, and autonomous. No single point of failure exists. No central authority or middle man owns or can corrupt the information. The rules in which people interact with the knowledge base and with one another are mutually agreed upon and enforced through smart contracts, which are publicly verifiable on the blockchain. Through the Lunyr API, decentralized applications will be able to tap into the knowledge base and grab accurate data on real world events and information. This leads to immediate benefits for Artificial Intelligence, Virtual Reality and Augmented Reality applications.
Ethereum enables the creation of app tokens, which can be used in an incentive system to replace intermediaries. In Lunyr’s system, tokens play a key role in providing economic incentives so that the rational behavior of individuals results in a common good. Contributors are rewarded for their work and are incentivized to continue increasing the value of the ecosystem.
Supply Chain Management
Blockchain has also been predicted to affect future trends in the supply chain. When used in the supply chain, Blockchain can help improve transparency as well as traceability thus building the reputation and reducing the administrative costs. With Blockchain, members of the supply chain can record the date, quality, location, certification as well as the price of the goods or products. The ability to trace goods along the supply chain also reduces the losses, increases visibility and also increases efficiency especially in the manufacturing sector. Furthermore, Blockchain has also enabled businesses to make international payments which is the ultimate goal of every business. Currently, the global trade sector is estimated to be worth $10 trillion on an annual basis. With faster business processes and fewer interruptions, the global trade sector is expected to grow further in future.
Cybersecurity
In the banking sector, the introduction of cryptocurrency can reduce fraud and increase efficiency. Blockchain has proven to be extremely secure, hence making it ideal for accounting and auditing purposes. Additionally, the high level of encryption makes Blockchain an ideal alternative for money laundering protection from the traditional methods of protection. Blockchain enhances record keeping as well as other features such as Know Your Customer (KYC), which helps businesses verify the identity of their customers for security purposes. Banks such as the Commonwealth Bank of Australia are already working with Blockchain to increase the efficiency of their services, protect their data and create value for their clients.
The Healthcare sector
Blockchain technologies are also improving the healthcare sector through data storage and accessibility. In the healthcare sector, data sets such as age, medical history and gender are easily shared across hospitals. The healthcare sector has been experiencing an increase in connected medical devices which can now be connected to blockchains, allowing healthcare providers to access the patient’s healthcare information. Connected mobile devices enable patients to keep in touch with their healthcare providers while allowing healthcare providers to monitor their clients. Connected medical devices improve health and increase the efficiency of healthcare services for both caregivers and patients. Once healthcare providers can share and access information effortlessly, delays in healthcare provision processes will reduce significantly.
Other industries affected by Blockchain technologies and cryptocurrencies include real estate and media. On average, homeowners tend to sell their homes after 5–7 years. An individual may move up to 12 times throughout his or her life. Throughout the process, blockchain technology can help verify finances while reducing incidences of fraud.
Media houses, through platforms such as Publiq, have made it possible for content writers to share their messages while receiving immediate payment. Apart from media and real estate, Blockchain has proven beneficial in the energy industry by enhancing energy supply transactions. PWC notes that Blockchain has proven reliable in clearing processes, metering as well as billing in the energy sector. While businesses may differ in goals, objectives, products, and services, Blockchain technologies and digital currencies are features you must consider for your business.
