Blockchain technology is disrupting various industries. A technology that was generally unheard of previously is expected to have a market capitalization of over $3 trillion by 2024. This showcases the immense potential the technology holds for the various industries. Even though most industries tend to be resistant to change, sooner or later, a lot of enterprises will have to adopt blockchain technology to ensure efficiency and profitability.
How Are Industries Using Blockchain Today?
The reason we and the world, in general, think that blockchain will disrupt various industries in the future is that the process has already begun in some sectors. The two most prominent companies that are adopting blockchain technology are Alibaba and IBM.
In 2017 alone, Alibaba acquired rights to 43 of the present 406 patents in applications concerning blockchain. These patents gave them the power to innovate, invent and design blockchain. There were various instances when Alibaba used this technology. For example, it released “The Ant Financial Blockchain” to allow for decentralized financial operations.
It has also integrated the technology into various of its subsidiaries to allow for easy tracking of data across borders. This makes keeping tabs on logistics and distribution a comparatively more straightforward task than before. One of the subsidiaries that have integrated the technology is Lynx international. To optimize supply chain, Alibaba’s subsidiary called T-Mall also adopted the technology. This allowed the company to track shipment data of more than fifty countries effectively.
IBM is also playing its part in delivering blockchain solutions to its customers. The IBM Blockchain platform is an excellent solution for those who wish to create a blockchain network and also be provided with enhanced security. Some of the instances when IBM has used blockchain include the IBM Food Trust, verified.me, and its private equity network.
IBM Food Trust connects retailers and growers on a platform. This leads to transparency and accountability across the value chain. Verified.me is a blockchain network that helps users in identifying and verifying identities for driver licenses and bank accounts to prevent identity theft.
10 Industries That Will Be Disrupted by Blockchain
In the next five years, the following industries will be massively disrupted by the blockchain technology.
1. The Automotive industry
The automotive industry can significantly benefit from adapting blockchain technology. When we buy cars today, we rely on financial intermediaries. This doesn’t just increase transaction cost, but it also means we must provide a lot of sensitive information. Blockchain can change this, and it is changing it as you are reading this.
Have you ever heard of The Autoblock? If you are an automobile and blockchain enthusiast, then you must have. This platform connects you to buyers and sellers of the automobile. The transaction occurs via the AutoCoin which incorporates the blockchain technology. This protects your data while simultaneously reducing transaction cost.
Think about what could be achieved if all the data related to the automotive industry was accessible via blockchain. For starters, it will make a car valuation system much more accurate. Not to mention how it will positively affect the transportation and e-hailing services.
2. The Real Estate Industry
Currently, real estate purchases are marked by never-ending documentations. Not to mention the role of financial intermediaries makes it even more hassling. With blockchain, all the data can be secured and stored on an online encrypted platform, thereby reducing the hassle.
3. The Banking Industry
People tend to think that the blockchain and banking sector is the nemesis of one another. This is not true. Instead, the banking sector can benefit from the technology since it can allow them to record data regarding transactions in a secure way.
4. Music streaming services
Various online music streaming services are springing up. As musicians, rather than signing up with record companies and giving your share of profits to them, blockchain can allow fans to pay the musician instead directly.
5. Healthcare industry
Data breaches in the healthcare sector can be disastrous. Blockchain can provide the healthcare sector with a safe platform to store as well as share data. The probability of breaches is decreased due to encryption of all data present on the blockchain.
NGOs work for noble causes. However, if corrupt people lead them, it is easy for the money donated by the masses to be misspent. By using blockchain technology, NGOs can enhance their transparency and accountability, therefore, increasing the confidence of the masses in the system.
7. The Legal Industry
Verifying documents. Accessing important public data. Resolving cases on wills. All of this can be simplified once blockchain technology takes over. Since all records will be stored on the system, they can easily be verified. At the same time, they can’t be altered without authentication, leading to fewer frauds.
8. Person to person lending/Crowdfunding
Resorting to financial institutions isn’t the only way to get a loan. Many P2P platforms also exist which connect potential lenders with borrowers. However, because of the lack of trust, such investments are accompanied by high interest rates. In the future, blockchain will allow for smart contracts. People and projects can release tokens instead that can be bought by investors. These tokens can be used for obtaining services or can be liquidated to cash. This helps in getting investment at low rates.
9. The Cloud Storage Industry
While Cloud Storage is a great invention, it has also made the masses vulnerable to hacking and data loss. Once the industry adopts blockchain technology, they can become much more secure than they are right now. Many companies have begun this journey. For instance, Storj is already using the blockchain technology to secure its cloud storage system.
10. Insurance industry
Smart contracts can revolutionize the insurance industry as we know it. Any insurance plan that is dependent on real-time information can benefit from blockchain. This is because it doesn’t just deliver real-time data but also keeps it secured at all times.
Whether you like it or not, the chances are that blockchain will disrupt your industry. Jump on the bandwagon before it’s too late.