Top 5 Industries Using Blockchain: Technology was always thought of as something that could make our lives easier. Today, however, it has become a necessity and a means of survival for businesses. A decade ago, having a smartphone was a luxury, but today many consider it a must-have possession for carrying out various tasks. The smartphone is but one example of how the past decade has witnessed the rise of technologies that radically disrupted the conventional way of doing things. One such technology in this time of the Fourth Industrial Revolution is blockchain technology.
If blockchain is something you are not familiar with, you may have surely heard about one of its most popular applications – bitcoin. Yes, the cryptocurrency that took the finance industry by storm. Blockchain technology introduced a unique decentralized system that offers solutions to not only cryptocurrencies but other industries as well. The major reason why blockchain technology has garnered the attention of all business verticals is that it addresses security concerns, is not prone to errors, is fast, simple, efficient, and eliminates the need for middlemen.
This emerging technology has opened up a new field called Blockchain development. In effect, it has provided developers and tech enthusiasts with multiple career opportunities. Today, blockchain developers have become quite valuable in the job market. In fact, in countries like the US, they command an average base pay in the range of $150K to $250K. Taking a Blockchain course in London can prove to be a wise decision helping you step into this promising career domain.
When you think of blockchain as a career option, you might wonder if it is only for the finance industry. Well, the applications of blockchain go far beyond cryptocurrency and many industrial sectors now want to leverage its potential. In this article, we have discussed the top sectors using blockchain to accomplish various business goals.
Industries Using Blockchain
Here are the top five industries where the potential of blockchain is being harnessed.
The automotive industry can experience a number of advantages by adopting blockchain. By using smart contracts, consumers can pay for the electricity to charge their electric cars. Apart from charging, cashless micropayments can also be used at tolls, congestion fees, as well as parking. Its accuracy and security can be utilized in recording data related to the navigation of autonomous cars. Ride-hailing services like Ola and Uber can use this technology to base their payment on predetermined conditions and install them in a smart contract.
Hundreds of leaders in government have realized the cross-cutting applicability of blockchain already. A blockchain solution can allow for independent verification of governmental claims related to some citizen services like a land registry (which could resolve property disputes faster). Blockchain can protect massive government data, streamline flawed processes, and minimize fraud, abuse, and waste thereby increasing accountability and trust. A number of governmental applications can be supported through blockchain, like digital payments, corporate registration, voting, identity management, taxation, supply chain traceability, and legal entities management.
This ledger technology is used in the healthcare sector for various reasons like secure transfer of medical records of a patient, managing the medicine supply chain, and unlocking genetic code (carried out by medical researchers). Patient records are prone to data breaches where hackers can compromise the credit card and banking information along with health and genomic testing records. By using blockchain, hospitals are able to keep their patient data incorruptible, decentralized, and maintain a transparent log. Smart contracts can be used to resolve disputes, trigger the next steps in medical supply chain transactions, or move medical images through review.
The initial area which is considered for insurance companies where blockchain can be applied is automation in paying claims. The technology can be used to verify the coverage between companies and reinsurers so as to automate claims functions. It also enables capture of immutable, trusted, and verifiable information based on digital cryptography. Transmission of any kind of digital evidence for underwriting is another area where blockchain technology is useful. It makes easier to incorporate digital evidence into underwriting and thus paves the way for future changes into product development and pricing areas. Insurance companies are also using blockchain to fundamentally alter claims submission processes to reduce fraud and improve customer experience.
With better data handling capabilities, the supply chain industry is already advancing and is capable of transferring good data across supply chain tiers at close to real time speed. As per a McKinsey blog, blockchain can be used to replace slow manual processes, strengthen traceability, and reduce supply-chain IT transaction costs. It is observed that processes in the lower supply tiers rely on paper and are slower, and blockchain can be used to replace them. Next, blockchain can improve traceability by mitigating the high costs of quality problems like recalls, reputational damage, or loss of revenue from black market products.
Blockchain is already gaining momentum and companies should start observing the players in their sector who have begun experimenting with blockchain. This way they can stay afloat in the dynamic market and get an indication of timing to develop a blockchain prototype. Now is the right time to explore the world of blockchain and identify its applications in different industries.