A Step towards Decentralization: How Industries Benefit From Blockchain
The term “Blockchain” is one of the most familiar terms associated with cryptocurrency and is often used interchangeably with it. In fact, Blockchain is the main technology behind which Satoshi Nakamoto developed the distributed electronic cash system known as Bitcoin.
Blockchain’s most integral feature is decentralization. Traditional industries are dependent on centralized systems or authorities that set the pace for their further development. In a decentralized system, no reliance is placed on a single central entity. Instead, everyone in the network helps the system operate smoothly. Therefore, Blockchain technology is called a peer-to-peer network due to its lack of dependence on a single entity. In addition, blockchain is immutable and transparent, as all transactions that have ever taken place within the network are recorded and distributed among the nodes (peers).
Despite the fact that Blockchain appeared as a game-changer in the field of financial services, the technology can be successfully applied in various industry sectors as well. Here we list some of them.
This is probably the most obvious example of the industry that can benefit from implementing blockchain solutions.
Blockchain aims to capture the traditional monetary system by providing almost fee-free international transactions between users. Moreover, it can support millions of transactions per second, and thus build a unique real-time global payment network.
Suppose, there is user A living in Germany who wants to send money to user B in the United States. Traditional banking system would require significant fees as well as time to conduct this transaction. However, with Blockchain user B can get his money in the blink of an eye with minuscule charges (or even none).
Use Case. In 2017, the world’s famous tech company IBM released its blockchain platform that claims to be a universal payment solution. A large number of banks has already joined the platform and tested the network for cross-border transactions.
Supply chain is a . The current supply chain system is riddled with countless issues. Transportation of goods is expensive due to the rising prices for fuel. Miscommunication in the layers of the supply chain causes many products to be often over-produced, resulting in the misuse of valuable resources like electricity.
Products cannot be traced while they go through the manufacturers, suppliers, distributors, wholesalers and retailers. Overall, the entire supply chain system is ineffective as well as increasingly costly. There is a severe need for transparency in the whole supply chain system.
The entire supply chain can be drastically improved by the introduction of Blockchain’s smart contracts. Smart contract is an application that is made on top of the Blockchain. A smart contract is a contract that automates certain requirements and executes tasks accordingly once the pre-set terms are met.
Smart contracts will operate on different layers of supply chain and most importantly will cut the costs of the middlemen from the system.
Use Case. Recently, the news has broken that India is looking into ways to streamline their food supplies with blockchain. The authorities believe this emerging technology will improve the process of grocery distribution substantially.
Medical system in any country is a basic and essential requirement. Despite its importance, the healthcare industry is one of the most outdated industries in the world due to old fashioned and archaic infrastructure.
Use Case. One of the blockchain systems that aims at revolutionizing the healthcare sector is Medicalchain. The team behind it works on developing a decentralized medical network for matching the patients with doctors and improving healthcare services worldwide. Medicalchain has already earned support from the top hospitals.
Cloud computing has gained immense recognition in the recent years. It enables users to store and process their data on remote servers instead of their own servers.
However, the storage and processing of data on centralized servers carries various risks like . Blockchain offers the cloud industry an easier and safer solution through decentralization.
Use Case. There are platforms like Storj that can store data within their decentralized cloud systems and Golem that offers complex processing related to computer graphics, machine learning and scientific computing through their decentralized supercomputers.
Elections in countries especially in the third world countries are often manipulated. Many parties are unable to win and thus the country gets taken over by corrupted entities. Even the US 2016 election was alleged to be rigged.
Blockchain has the capability to change the world for the better. It can change the entire political landscape. Since Blockchain is immutable and cannot be altered or tampered with by any entity, it provides a fair process for voters’ registration and verification of their identities. Furthermore, the number of votes in an election cannot be added or eliminated, thereby ensuring the counting of only valid votes.
Use Case. Decision Token is one of the cryptocurrencies working on it and it has already acquired the support of the United Nations.
A major problem with the gambling industry is the as the results and winnings are hidden from the public. With Blockchain, the gambling industry can be revitalized as Blockchain will ensure the protection of data from any malicious party. Due to Blockchain’s permanent and validated records, gamblers will trust the casinos and the industry will flourish.
Fraudulent activities from gamblers also harm the industry as people try to manipulate the traditional bettings systems. Blockchain will enhance the security in the gambling industry and minimize the losses.
Use Case. A lot of online casinos experiment with using Blockchain in gambling and accepting cryptocurrencies as a mode of payment. There are poker rooms, lotteries and even sports betting systems that run on top of Blockchain so far.
The above mentioned industries are not the only industries that can benefit from the use of Blockchain. There are a lot more sectors, which would function better with its implementation. If adopted widely, Blockchain is capable of making human lives a lot simpler and smarter.