Blockchain technology has revolutionized the finance industry, with adaptions transforming other industries too. Read about the industries which are utilizing this decentralized technology.
Blockchain Technology Overview
Blockchain is one of the most talked-about technology right now. It has revolutionized the Finance industry completely. And has the potential to transform industries, implementing major changes while creating new opportunities too. Let us discuss in brief what is blockchain and how it works?
Blockchain is a networks-based database. Earlier, banks, regulatory bodies etc. fulfill the task of data storage, verification and management. To remove the intermediaries and make data management decentralized, a new ledger was introduced. This ledger is electronically distributed among different nodes and each transaction is verified and then added to a block with a time-stamp. These blocks make a chain; hence it is called Blockchain technology.
Blockchain uses cryptography to verify transactions and record them in blocks. Blockchains are of two types – Permissionless (anyone can join) and Permissioned (You need permission/authentication to join)
Future Scope of Blockchain Technology
When it comes to Blockchain, the first thing that comes to mind is Bitcoin, crypto asset. No doubt Blockchain is the underlying technology which made the crypto assets so popular and successful too. However, it is innovating many industries other than crypto.
According to Markets and Markets, global blockchain market will reach $67.4 Billion by 2026 and Blockchain in Manufacturing is growing at a rate of 73% from 2022 to 2026.
Let us take a look at some of the industries that are reshaping the future of global economies through the Blockchain technology revolution.
Finance Industry
Obviously, this would be the first industry where impacts are huge. Due to blockchain we now have access to Decentralized Finance where it is possible to borrow or lend money, insurance issuance etc. Financial Industry faced many challenges such as data manipulation, double spending, lack of privacy in transactions etc. However, with the help of decentralized ledgers, financial institutions can now remove intermediaries and provide a trustworthy, transparent system.
Government-backed Digital Currencies
We all have seen the success and popularity of digital currencies. Now governments around the world have realized crypto-asset potential and are working towards launching their own currencies. Many countries have officially announced the launch of their own digital currency. This tells us a lot about the future scope of blockchain technology. To launch a successful digital currency, governments would obviously need blockchain technology.
Supply Chain Management
Blockchain technology has hugely impacted SCM and Logistics industry. These companies process huge amounts of data, transactions, outgoing-incoming on daily basis. Blockchain made it easy to track delivery schedules, complete transactions through Smart Contract as well as to authenticate product delivery. Some companies have also implemented this technology to track the origin, quality and shelf-life of products.
Digital Marketing
Bots are the bane of the Digital industry. Many use this malpractice to drive traffic through bots, and steal content. Retail marketers face payment issues due to inefficient payment models which hamper their businesses. Another challenge faced in this industry is domain fraud. Blockchain technology can easily resolve all these issues.
Cloud Storage
We live in an information and data age. Companies use cloud storage to store and use tons of data. However, these storage facilities are centralized and open to vulnerabilities such as hacking, human error or data loss due to calamity at the storage facility etc. Blockchain implementation can solve these problems through decentralized cloud storage.
Internet of Things
IOT products collect and process huge amounts of data to provide an enhanced user experience. The data is stored in centralized systems. Companies such as IBM are utilizing Blockchain technology to develop a distributed community of IOT devices. This would eliminate a centralized communication system between apparats for different tasks.
What future holds for Blockchain Technology
As we discuss above there are various applications of Blockchain technology and its utilization in our daily life is growing day by day. It is still an emerging technology and who knows what modifications and adaptations would come in the future. It has already created a transparent financial system and a whole new world of DeFi. The future scope of blockchain is limitless with applications in all the industries across every sector.