Blockchain technology has taken the world by storm in the past few years. The past decade has seen a lot of revolutionary changes across industries. The internet is flooded with different definitions of blockchain technology, and that difference is solely due to multiple use cases. In simple terms, a blockchain is a system/database in which transactional data is stored securely. Blockchain is often associated with Bitcoin as all Bitcoin transactions are recorded and stored in a blockchain ledger where every transaction is encrypted and immutable.
As the name suggests, blockchain is a combination of two words- block and chain. It is a decentralized database where every new transaction is stored in a block, and every time a transaction takes place, a new block is added to the chain. This chain is immutable as a whole, meaning no data can be modified or tampered with once it is stored in a block.
Source :https://www.finance-monthly.com/2017/11/3-ways-blockchain-benefits-your-supply-chain/
The financial sector was the first to tap the potential of the technology and leading cryptocurrencies like Bitcoin and Ethereum are among the first few use cases of blockchain. According to an estimate, the market size of the blockchain industry currently stands at approximately $4.9 billion and is estimated to grow to $67.4 billion by 2026. The mass acceptance of the technology and its adoption by leading businesses across industries could be the only reason behind this significant growth.
Blockchain in Financial Sector
The Financial sector was the first to tap the limitless potential of the blockchain and use it for faster, safer and secure transactions. From cross-border transactions to insurance, government and private organizations are today using blockchain technology for various operations.
Using blockchain for global transactions is probably the safest way as its properties make auditing and accounting very easy. The chances of fraud are reduced and stakeholders worldwide can interact freely.
While the financial sector was the first to use blockchain, the technology is now being adopted by several other industries on a large scale.
Here are some of the leading industries where blockchain technology is making an impact:
1. Healthcare: Healthcare sector came under immense pressure during the pandemic. Hospitals and government-owned medical institutions have to manage huge databases and there have been numerous cases of cyber breaches on these databases in the recent past. According to a report stated by Forbes, there was a 42% jump in cyber attacks in the healthcare sector in 2020 itself. This number is only expected to increase in the coming years. Using blockchain can protect the data of patients from getting compromised or stolen. Various health organizations have partnered with leading organizations like IBM to deploy the ledger technology for secure transfer of patient data, managing the supply chain and other critical operations.
Source: https://www.healthit.gov/sites/default/files/11-74-ablockchainforhealthcare.pdf
According to BIS Research, the immediate application and integration of blockchain in healthcare could save more than $100 billion per year in costs related to IT, operations, support functions, personnel and health data breaches by 2025. Besides this, blockchain could also be used for establishing an effective communication channel between trading partners and medical institutions.
2. Supply Chain Industry: Supply Chain industry was heavily hit amid the pandemic with long-lasting challenges like shortage of containers and human resources. The scarcity of resources and manpower led to a sudden increase in prices of various critical commodities and delayed deliveries. Amid all these challenges, several startups came up with the idea of integrating blockchain with other groundbreaking technologies like IoT to automate the supply chain process and eliminate the inefficiencies in the global supply chain. Morpheus.Network, a Canada-based supply chain management firm, has helped several leading organizations, including Gulftainer and GEC, make their global supply chain operations more efficient.
From cost-efficient delivery to enhanced products’ traceability, blockchain technology is transforming the global supply chain while helping businesses save millions.
3. Real Estate: While we live in a global economy, it is still a distant dream for the majority of the population to own property in some different country. Other inefficiencies exist in real estate; improper mapping, forged documents, etc. Blockchain can be of great use at several stages of property transfer. Right from the signing of documents to cross-border payment and transfer of ownership, all the operations can be performed securely within a few clicks with the deployment of blockchain technology. In the case of rental agreements, a smart contract can be used as an intermediate or point-of-contact between the owner and the tenants. Smart Contracts are soon going to replace lease agreements. Tokenization of real estate is another revolutionary step that will help people own properties in different parts of the world without travelling there. Projects like Landshare have already started operating on this futuristic concept.
Source: https://www.researchgate.net/figure/Blockchain-process-in-real-estate_fig3_348501705
Landshare is doing the unthinkable in real estate by making fractional ownership of real estate possible. Blockchain is at the core of this revolutionary idea. Users can invest as little as $50 to buy tokenized real estate. With a minimum investment of $50, users are getting as much as 17% yearly returns. With blockchain technology being used for deals in real estate, smart contracts are bound to replace hundreds of pages of paperwork. The total estimated worth of the global real estate market was more than $326.5 trillion in 2020. A significant portion of this market cap includes high transaction costs and broker charges that investors have to pay for investment in international real estate. With smart contracts replacing documents and intermediaries, acquiring properties globally will get a lot easier and more convenient.
4. Transportation: The rapid population growth in metro cities has made it complex for the concerned authorities to manage public transport. The complexities in public transportation have led to a surge in tariffs and a shortage of routes. Blockchain once again comes to the rescue, helping the concerned authorities optimize the public transport system for better facilities. The use of blockchain will create s space where ride-hailing, bike-sharing, buses, subways, trains, and other transport modes can co-exist.
Several research papers have been published about the applications of distributed ledger tech in public transport. Most of these papers discuss the involvement of three parties in public transport- the government, companies, and users.
The government is responsible for taking care of roads, tracks, data collection, issuing driving licenses and monitoring traffic. All of this can be done using blockchain technology. Monitoring traffic and issuing essential documents can be simplified using blockchain.
Transport companies involved in public transport can leverage blockchain technology to monitor operating vehicles in real-time, audit transactions and store insurance contracts.
Users in metro cities already use specific programs to track bus/metro, check seat availability, monitor traffic etc. The integration of blockchain can make this process faster.
Source: https://about.bnef.com/blog/applications-blockchain-grow-energy-transport/
According to a study by IBM titled “Expedited delivery: How transportation companies can thrive with blockchain”, 77 per cent of transportation respondents plan on having blockchain in production in three years. Fourteen per cent of these “are working with and investing in blockchain now.”
To conclude, blockchain applications are not limited to the financial sector, and the technology is set to disrupt several industries in the coming years.