We all know that blockchain is a decentralised ledger of all transactions across a peer-to-peer network. However, besides being associated with the infamous Bitcoin, what does it really offer? More importantly, can it really stand alone without it? This article will open your mind to a lot of business opportunities with blockchain technology.
Let’s start with some quick definitions. Blockchain is the technology that enables the existence of cryptocurrency (among other things). On the other hand, bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented. The medium of exchange called cryptocurrency is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
Blockchain also has potential applications far beyond bitcoin and cryptocurrency
From a business perspective, it’s helpful to think of blockchain technology as a type of next-generation business process improvement software. With this collaborative technology, the business processes that occur between companies will eventually develop in terms of radically lowering the “cost of trust.” Because of this, it may offer significantly higher returns for each investment dollar spent than most traditional internal investments.
Industries where blockchain can be utilised
Banking isn’t the only industry that could be affected by blockchain technology. Here are a few industries that currently benefits from the infamous technology:
Encrypted messaging app Telegram raised $1.7B from private investors before canceling the public sale of its planned $1.2B initial coin offering (ICO). Around a year later, the company launched the test client for its blockchain-based TON (Telegram Open Network).
Agora is an organization which has developed a blockchain-based way to cast a vote digitally. The technology aims to prevent election fraud by using a custom blockchain record.
Startup Arcade City, for example, facilitates all transactions through a blockchain system. Arcade City operates similarly to other ride-sharing companies but allows drivers to establish their rates (taking a percentage of rider fares) with the blockchain logging all interactions.
With the recent application of blockchain solutions in education, verification procedures have been streamlined, thereby reducing fraudulent claims of un-earned educational credits.·
In 2015, Visa partnered with transaction management startup DocuSign on a proof-of-concept project that used blockchain to streamline car leasing — transforming it into a “click, sign, and drive” process.
Industries that should adapt to the blockchain era
Not many of us are aware of what exactly is blockchain and how it will impact several industries. Here are industries that should utilise blockchain:
Since blockchain technology helps in securing legal data, records including wills stored in the blockchain can be easily and securely verified. Any changes/updates in the legal documents will be first authenticated and then stored.·
From fraud prevention to faster and transparent payments, the food industry can flourish with the help of blockchain.·
With the help of blockchain, we can store all the documents and transaction records safely with lesser efforts and costs. The smart contracts can be created between the seller and buyer that release funding only when the conditions are satisfied.
Blockchain is becoming the newest technology that will impact several industries in the years to come. As new technologies evolve, it is important to make sure that the affected industries stay updated with the trends to stay ahead in the competition.