9 Industries that Benefit from Blockchain Technology
9 Industries that Benefit from Blockchain Technology
Blockchain Technology and Current Adoption
Many know blockchain as the underlying technology of cryptocurrencies, supporting well-known networks such as Bitcoin and Ethereum. In recent years, blockchain technology has gained traction beyond web3, becoming highly applicable to companies in various industries.
By definition, blockchain is a way to store digital data securely, allowing for traceability and transparency. It’s multi-faceted, which enables it to be agnostic in how companies use its capabilities within their organization. Blockchain comes with five key benefits:
Immutability - meaning when a transaction is recorded, it cannot be modified. Transactions are thus time- and date-stamped, enabling members to view the entire history of the transactions and decrease the opportunity for fraud.
Security - End-to-end encrypted transactions on the blockchain are immediately traceable every step of the way. The traceability allows for direct exposure of weaknesses, making it faster for people to spot attempts of fraudulent behavior in the transaction chain.
Transparency - Blockchain uses a distributed ledger, meaning transactions and data are recorded identically on multiple locations. Members can see transactions recorded.
Speed and efficiency - Transactions stored on the blockchain are completed much faster and more efficiently, as details are stored on multiple ledgers. Furthermore, automation with smart contracts can also increase speed.
- Multi-Verification - The transaction's authenticity is verified by multiple participants, enhancing the transparency and security of a blockchain transaction.
Globally, the blockchain technology market size is estimated to grow at 44.5% CAGR from 2022 to 2028, reaching around $60 billion. The use of blockchain has become rampant across industries.
Research by BlockData shows that 44% of the top 100 companies globally, such as Apple, Oracle, Roche, J.P.Morgan, Nike, UPS, Visa, and more, all rely on blockchain to create a more efficient exchange of information.
It is one of the most efficient and accurate ways to share data, which can not be easily tampered with due to the required permission from various members. By using blockchain technology, companies can improve auditing processes and speed along contract management, causing a domino effect across other areas of the organization.
Industries that will continue to thrive or start adopting blockchain
Delivery of all the benefits mentioned above makes blockchain more widely used across industries. Multiple use cases have shown advantages for various companies. Below we list the top industries already benefiting and using the technology, as well as companies that have started to research using blockchain for future initiatives.
End-to-end encrypted data enables patients to own their medical data. Data stored on the blockchain allows patients to regulate their privacy and data. Contrary to what happens now, blockchain will give patients the right to permit medical professionals to use their data for healthcare research purposes.
2. Banking and Payments
A commonly seen blockchain use case is what we see in the banking and payments industry. Besides processing fast transactions, the blockchain economy has helped with security issues such as detecting fraudulent transactions and compliance violations.
Decentralized services based on blockchain contributed to decreasing the unbanked population. In 2021, 1.4 billion people were without a bank account. Digital payments and money transfers are critical for people to access their funds. dApps and other cryptocurrency wallets built on blockchain technology have allowed for a new way of earning and storing money, which is a profitable opportunity for FinTech, Banking, and Payments.
3. Supply chain
With the ability to automate processes and acknowledge data sources, blockchain is widely used in the logistics industry to track the location of goods. Especially when multiple players are involved, and third-party providers are on one platform, end-to-end tracking via smart contracts allows for a secure and fast process. With increasing mobility and globalization, tracking essential goods such as medicine or food will gain importance and need adequate technology infrastructure to support its growth.
4. Identity and Personal Data
Similar to the healthcare industry, data and identity management will be shifted entirely to the “data creator” rather than the companies holding our data. Due to its transparency, data stored on the blockchain will give people full access and control over the data they create. Many companies will find this a challenge and therefore stray from introducing blockchain as holding information is an integral part of their business model; nevertheless, front-running companies are already looking into various opportunities to share data rights with their customers.
Blockchain allows music artists, or all artists in that manner, to own 100% of their royalties, breaking them away from music labels who potentially extort them for high fees. Furthermore, venues and concerts can curb counterfeit tickets, as tickets stored on a ledger will be entirely unique to their holder.
6. Digital Media
Digital media companies face data privacy, intellectual property, royalty payments, and copyright infringement challenges. Blockchain technology can help maintain data integrity and target the right customers.
Various blockchain and web3 developments can impact the education sector. Starting from tuition fees, the university can start accepting cryptocurrencies as a form of payment. This can be particularly beneficial for younger investors as tuition increases in universities. Furthermore, gamification in the metaverse coupled with data stored on the blockchain also makes it possible for more students to learn digitally in a fun way. Test scores, homework assignments, and plagiarism can all be stored on the blockchain and prove the full identity of the student who submitted the work.
Ownership plays a significant role in the art world. Right now, “traditional art” is purchased and owned by the buyer. The concept is not much different when blockchain technology is introduced. Not only will digital art continue to disrupt the art world, with rising trends like digital art and generative art, but fractionalization and storing ownership of art on smart contracts will also make the art world much more transparent and open for trade in the future.
Transparency is the main driver for government entities. For example, an essential benefit of using blockchain is that it can combat voter fraud as all the data, in this case, the votes, are stored on the ledger. Furthermore, funding, assets, taxation policies, and more can all be very easily traced back to the blockchain.
Where will blockchain adoption be one year from now?
The future of blockchain technology is one to look forward to, as many companies are already looking into how they can optimize their in-house processes. Nevertheless, some still need to be more confident due to a lack of understanding or network interoperability.
It is up to early adopters and blockchain service providers to educate companies and governments about the benefits. By proving that the technology allows for better transparency within the organization, a more efficient process, and cost-saving opportunities, it will surely not be long before we see more blockchain adoption across several more top-tier companies and institutions.