How Blockchain Technology Will Transform Business
Blockchain technology is making a big impact in this world and is set to transform entire industries. From supply chain to aviation, from finance to entertainment, blockchain has already started to produce positive results for businesses. Let me try to break it down for those who keep hearing about this technology as it relates to Bitcoin but trust me, this is way bigger than Bitcoin or Cryptocurrency.
With the help of blockchain, you can imagine native payment systems that can function without intermediaries like banks. Think about it. Banks and payment systems need 3 parties to verify transactions, Blockchain eliminates all of that.
Reputation systems will be controlled by individuals, not by rating agencies and credit rating services.
Trustless transactions will be a reality where two people can do businesses with each other simply on the basis of trust because fraud cant and won’t happen.
Blockchain has virtually no limits and businesses can go as far as they could imagine.
So What is Blockchain?
Well, to put it in the most simplest forms: Blockchain is a series of computers that can keep records of transactions or events that are open to the public.
It is a digital ledger of transactions where the same record is kept in several computers and all the data remains encrypted and basically hack proof. The information is stored in a distributed network as opposed to centralized or decentralized networks which might be hacked. Think about it, if you do business with a bank, then that bank has all of your financial information located in 1 server. The server can be hacked therefore exposing all of your information. With using Blockchain technology, the information is spread out on many different servers, which means one central location cannot be hacked.
Hence, the transaction details remain safe and two parties can do business easily with no middlemen involved in the process.
Industries Blockchain Is Likely to Disrupt
Now, let’s have a look at the industries that are set to have a big impact from blockchain.
1- Real Estate – The Real estate industry is set to have the biggest impact from Blockchain. With the help of smart contracts created with the help of blockchain, property deeds can be completed without the need of attorneys. Moreover, people can buy houses online in the same manner as they do shopping for household items. The transaction will be completely secured and the seller could even receive the payment via cryptocurrency. Think a Bitcoin payment for a house or even a car. Its already happening.
2- Aviation – Blockchain and airlines industry is a perfect match. The e-ticketing process can be streamlined because tickets can be sold by several partners from anywhere in the world. This will make it easier for the people to buy tickets.
Moreover, the loyalty points can be tokenized on the spot and one can get the full value on the spot thereby eliminating the longer waits which you need because of that 3rd party we mentioned earlier.
Data that rests on blockchain can’t be hacked so the issue of data privacy will be solved instantly and if you havent been living under a rock for the past 2-3 years, data privacy in regards to hacking has been a serious prooblem. With the help of a virtual copy of the maintenance records, the aviation safety and maintenance department can ensure that the safety checks are made on time.
3- Entertainment and Media – One of the most obvious applications of blockchain in the entertainment and media industry is the ability to support micropayments. With the help of blockchain, middlemen are eliminated meaning, there is no need to give a margin of 2-5% on intermediary fees. This will enable the content creators to get the full value of their work.
4- Finance – Everyone has heard about Bitcoin which is powered by the blockchain technology. Now, apart from Bitcoin, the blockchain has managed to run a virtual ledger that can record any transaction and all kinds of assets can be moved and stored securely. Two parties can do business with each other without even knowing each other and there is no need for any 3rd party intermediaries like a trusted government organization because blockchain is hack proof. Trust is established by network consensus, cryptography, collaboration, and clever code.
The blockchain model in trade finance offers significant benefits over the traditional trade finance model as compared in the below table:
5- Healthcare – The problem of error, fraud and lost records will be reduced to NIL. Blockchain technology will help to store the medical records securely that can be safely accessed by doctors or medical professionals as and when needed. Moreover, multi-source identification will become a reality where a number of checks will be undertaken in real time to confirm the identity of the person so that no one can fake identities and access confidential information.
An example of a healthcare blockchain ecosystem is provided below where information is directed to the blockchain, transactions are completed and uniquely identified, any queries are submitted via APIs and patients can share their identity securely with health organizations.
Companies Who Are Already Exploring Blockchain
- Walmart is managing the supply chain data for its products using blockchain. The smart software built in collaboration with IBM will help to identify the locations where bad food came from during product recalls.
- FedEx, one of the top logistics management company is now using blockchain to track high value cargo. Sonner, they will start using this technology for all the cargo tracking making them the leaders in the logistics industry.
- Huawei technologies is looking to reduce mobile fraud by introducing new security layers that will revolutionize how data integrity is verified and valued.
- British airways has already used blockchain technology to reduce conflicting flight information and manage flights between London and Miami. The technology is developed further for use in other flights.
Blockchain is set to become one of the most widely accepted ledger technologies of this world with extensive support for cryptocurrencies. Businesses will widely adopt blockchain to transform themselves that will take the technology to a completely new level. Blockchain will allow businesses to digitize work flows and carry out business processes more smoothly and efficiently and its going to be bigger than the Internet.