Blockchain-changing technology- find out how state-of-the-art technology disrupts many industries and even create more efficient pathways in the future across the globe.
With the evolution of cryptocurrency, widespread usage gave birth to countless industries and introduced this entirely new paradigm of decentralized, free-from-intermediaries open ledger systems.
It is quite safe to state that almost every industry that dealt with and stored more than a handful of transactions learned how blockchain could change its landscape with advanced security and efficiency in a matter of days.
The disruptive power of the technology was rapidly infused into the defense and security sectors. On the other hand, the rapid integration of blockchain implies a globalization in which the fog of security and transparency will be lifted.
In this blog, we will try to limit ourselves and, and explain the changes in industries brought about by technology using relevant illustrations, numbers, and business examples supporting the changes.
What Is Blockchain Technology?
Blockchain is essentially a new type of technology in which transaction data is recorded on a series of computers instead of being stored in a central location, resulting in decentralization.
Instead of being controlled by a central authority, as with traditional databases, encryption codes protect this information as everything is evenly distributed across the network. As the servers are active in different regions and protected by encryption, there is never a risk of data being misused.
Everything can be encrypted with date and time stamps using blocks that work in sequence. The information or blocks remain permanently on the server and cannot be deleted unless authorized by the network.
As the database is distributed across several computers, it is less susceptible to hacker attacks, so the possibility of theft is very low. In this way, Mongo servers ensure that the data stored in them is both secure and efficient.
How Does Blockchain Technology Work?
It is based on three pillars: Blocks, Nodes, and Miners.
- Blocks: At the core of a blockchain is a block that is a record of something, such as a transaction, and it has a unique numerical identifier or hash number and also contains the hash of the previous block to form a chain of blocks.
- Nodes: The nodes in a blockchain network are the participants involved in that network. They consist of computers that engage in transactions within the blockchain, validating and authorizing the addition of new blocks as well as maintaining the complete history of changes in the chains.
- Miners: Miners utilize a mathematical system called proof of work (PoW) to add a block to the blockchain network. They have to answer complex mathematical questions that, if solved, are further validated by the blockchain, thus allowing an addition of the block into it.
It is improbable that just one block of a blockchain could be tampered with because all succeeding blocks would then need to be altered first. This is what allows the internal construction of a blockchain to be trusted and ensures an extremely high level of security, transparency, and immutability.
Therefore, the most crucial layer of security is perhaps provided by this feature of immutability in trust-based industries like finance and healthcare.
According to a recent Deloitte report, 53% of executives consider blockchain to be one of their top strategic priorities. This indicates how important it is to better secure industries and provide traceable sources for goods and information, which will be needed in the future.
Industrial Application of Blockchain Technology
Blockchain technology can track everything in the content life cycle, which would give it the potential to protect digital content and allow the distribution of authentic digital collectibles.
#1. Financial Services:
Blockchain technology is quite literally changing the financial service landscape, most especially in transaction speed, cost, and security. For example, JP Morgan Chase’s Onyx platform has reduced settlement time from days or hours to minutes, cutting operational costs by millions.
Similarly, Ripple’s cross-border payments platform enables nearly instant money transfers internationally, thereby preventing them from relying on costly means, such as the SWIFT network conventionally employed.
In contrast, the same 2023 PWC report estimates that due to an improvement in efficiency and a reduction in fraud, the value of blockchain to financial institutions will reach an estimated value of 27 billion US dollars by 2027.
#2. Cross-Border Payments
Ripple teamed up with Standard Chartered Bank in cross-border payments to facilitate the lender’s clients. With the use of Ripple’s payment network, the bank reduced transaction time by as much as 60 percent of the total time required.
This example also illustrates how blockchain technology can help in international transfers by reducing intermediary process costs.
#3. Healthcare:
It also presents options for secure patient data management and smooth clinical trials within healthcare. Medicalchain has created a blockchain-based platform where medical records can be stored and data integrity is maintained, while patients can control their information.
Blockchain technology is preventing data breaches. According to the IBM Cost of a Data Breach Report 2024, approximately 7 billion dollars could be saved by changing medical records to a blockchain basis.
A further belief is that drugs could now prove to be valid through better tracking that blockchain provides; therefore, selling counterfeit drugs will reduce chances.
#4. Real Estate:
Blockchain makes real estate transactions easier by creating digital property records and removing intermediaries from the process. Smart contracts on a blockchain, for example, replace intermediaries by automatically executing agreements whenever pre-set conditions are met. This speeds up processes.
RealT is a blockchain-based real estate investment platform that has applied fractional ownership models to allow users to buy digital tokens that represent shares of an asset. In this model, the market liquidity increases, and assets not accessible to smaller-scale investors become available.
#5. Voting:
With blockchain technology, voting will involve a more secure and transparent casting of the ballot. It has eliminated manipulation possibilities in the voting procedure.
According to Government Technology, a report in 2022 says citizens in Utah County made history as they voted for the first time utilizing blockchain while outside the country. Once a vote is lodged in a ledger, this will allow a voter to be assured that his or her vote goes through without being altered.
There will be many more problems in time to come. But one thing is sure: this is the Smith doctrine of voting.
#6. Retail and Supply Chain:
As a result of the employment of blockchain technology in retail and supply chain departments, it’s now possible to track an item from its origin through all the processes to the end consumer.
A food safety initiative by Walmart has empowered retailers to track food products as far as the second instead of days to enhance food hygiene.
Accenture conducted a study in 2023 where it shows that 63 percent of the executives in charge of supply chain management expect to turn to blockchain within the next five years. Because of improved effectiveness and reduced wastage, the elimination cost will be one hundred billion dollars.
#7. Government and Public Benefits:
Blockchain technology is also expanding in government services, be it for verifying identity, preventing malpractices, or efficiently disseminating public goods.
For example, in the government sector of South Korea, blockchain is used to verify and track public expenditure so as not to incur fraud risks, and the funds can hence be used by those people for whom they were intended.
Estimates made by the World Economic Forum show that improving public services through the application of blockchain could help the sector at an extensive level. An example of this is, that all governments in the world will be able to reduce losses, amounting to approximately USD 1 trillion in the next decade through the reduction of fraud and increase in efficiency.
#8. Online Music and Entertainment:
For example, blockchain technology revolutionizes digital rights management and artists’ payments in the movie sector. Audius or Musicoin sends royalties directly to the artists rather than to a record company which pays the distribution cost, thus enhancing transparency.
The Recording Industry Association of America (RIAA) reported that the advent of the blockchain-based royalty payment system can increase musicians’ earnings by as much as 30% because no funds can be charged to these distributors.
#9. Crowdfunding:
Investors can monitor the progress of the project, which makes them more confident in investing in blockchain projects. The use of blockchain technology allows them to keep track of the resources spent.
Investors are also given equity or rewards proportionate to their investment. For example, in a matter of weeks, the Polkadot project raised $43 million through token sales, making it the single most successful blockchain fundraising project in many years.
The model also reduces the possibility of fraud as it increases the investor’s confidence in this model while at the same time providing an easy way of funding.
#10. Energy Sector:
Consumers can now buy and sell their excess renewable energy directly due to Peer-to-Peer (P2P) energy trading enabled by blockchain.
In 2023, Power Ledger launched the first solar P2P marketplace in Australia, allowing ordinary citizens to sell and purchase surplus energy produced from solar without having to go through any third parties. The uptake of renewable energy increased by 20%.
The use of blockchain in managing decentralized grids can assist countries in reaching their sustainability targets. thus improving the accessibility and affordability of clean energy.
#11. Education:
In education, blockchain secures digital credentials, making it easy for institutions to issue tamper-proof diplomas and certificates. MIT is a pioneer in this area, providing blockchain-based diplomas that students can easily share with employers.
Blockchain credentialing prevents fraud and simplifies background checks, ensuring verifiable and authentic qualifications.
According to Gartner, blockchain credentialing could save educational institutions $200 million annually by 2025 by reducing administrative overhead and increasing trust in academic records.
Interesting Statistics about Blockchain Technology
“Proof of Stake” systems consume much less energy to confirm transactions than older methods, thus enabling them to be more environmentally friendly.
- Market Value: The global blockchain market was valued at around USD 17.6 billion in 2023 and is expected to expand to USD 1,879.3 billion by 2034.
- Spending On Blockchain Solutions: Solutions are expected to go far over the $19 billion mark in 2024.
- Business Value: Gartner has projected that by the end of 2030, blockchain technology could generate a business value of approximately USD 3.1 trillion.
- Global Economic Infrastructure: Blockchain will own 2030 10-20% of the global economic infrastructure.
Recent Developments in Blockchain Technology
In recent days, the field of blockchain has progressed substantially, especially in improving transaction speed, cost, and availability.
Another innovation includes “Proof of Stake” systems. Systems of this nature consume a lot less energy in verifying transactions than older methods, which can explain why they are viewed as environmentally more friendly.
Further, many firms are working on Blockchain Network that will make blockchain-related applications faster and easier to use in everyday life.
Two other essential advancements in blockchain technology include Stablecoins and Asset tokenization.
- Stablecoins are crypto assets pegged to an underlying asset such as the US dollar, and their unique feature is that the price remains the same making stablecoins beneficial to use for day-to-day shopping.
- Asset tokenization is the process that involves the transformation of tangible assets which includes real estate and arts into blockchain-based digital tokens.
This makes high-valued assets easy to buy, sell, and keep track of even on many owners and thus makes such assets available to many more investors.
Another important milestone in that regard is the development of “Smart contracts”—automatic transactions that are initiated by the occurrence of a certain condition, thus eliminating the necessity of third parties.
These contracts drastically improve transactions in areas such as finance, health, and supply and chain management, making the use of blockchain appealing for many applications.
Final Thoughts
Blockchain technology allows businesses around the globe to be secure, efficient, and transparent. With all the multinational organizations that started adopting and experimenting with blockchain technology, it becomes obvious that it is much more than a fad; this is a long-term revolution. Partnering with a blockchain development company can help you unlock the full potential of this revolutionary technology for your business.
It is pertinent for businesses, investors, and consumers to keep track of advances in blockchain technology to take advantage of its possibilities and remain relevant. Organizations can adopt blockchain to foster creativity, improve efficiency levels, and provide additional means of growth in various industries.
Author Name:- Harikrishna Kundariya
Biography:- Harikrishna Kundariya, a marketer, developer, IoT, Cloud & AWS savvy, co-founder, Director of eSparkBiz Technologies. His 12+ years of experience enables him to provide digital solutions to new start-ups based on IoT and SaaS applications.
