Blockchain technology might be one of the most revolutionary findings of recent decades. For the last 10 years, blockchain technology began to develop, become well-known, gain widespread usage, and give rise to new goods and opportunities in every industry sector.
Now, each sector is taking note of it and we can see more and more parts of the global economy influenced by blockchain. Why is it so applicable to virtually any business and industry?
Which part of the economy will be influenced next? In this article, I will showcase the universal characteristics of blockchain technology that make it so special, and highlight three sectors that would highly benefit from it in the future.
What Is Blockchain Technology?
It is a technological framework for data transmission and storage that places an emphasis on traits like interconnectedness, decentralization, transparency, and immutability. On a blockchain, each transaction or piece of data is permanently saved as a block, which is then validated against earlier entries to create a chain of blocks or blockchains.
A network of users, which may comprise both blockchain or organization members and unbiased third parties who may offer further verification, validates each new block.
While blockchain was introduced to the world through cryptocurrencies and its applicability to the financial industry sector, it has features to be applied to any number of other areas. That is because blockchain has characteristics that could help solve many universal problems that arise in other sectors.
1. Transparency
Because it is distributed over a network of computers and is decentralized, blockchain allows for more transparency. By using it, companies can record data in a public dataset that is easily reviewable. That way, the risk of fraud is reduced and accountability is more accurate thanks to the transparent framework.
2. Security
Many of the same reasons can be said about improving security with blockchain technology. Along with decentralization, cryptography in the blockchain is used to make it impossible for hackers to access the data. This is why every company from many different sectors can use blockchain to improve their cybersecurity and make it as difficult as possible for hackers to access and manipulate sensitive data.
3, Traceability
Blockchain also has the ability to help out companies when it comes to logistics. Companies are able to easily track their products and record responsible sources. Blockchain-driven innovations will likely increase supply chain transparency, lower risk, increase efficiency, and enhance supply chain management overall, all of which have the potential to produce significant commercial value.
Which Industry Sector Is Next?
Because all of the characteristics described above can be applied to any industry sector, blockchain technology has tremendous potential to change businesses all over the world. It has the ability to share problem points, streamline processes, and ensure company security. Here are three markets that will potentially be transformed by blockchain.
1. Healthcare
Many believe that healthcare deserves a revolution especially when it comes to sharing and storing medical data. Patient data management is currently defined by difficulties and concerns including the transfer of records when changing healthcare providers, upholding patient confidentiality, and guaranteeing patient information is updated. However, this new approach to data storage has the ability to change that.
Blockchain companies with a focus on healthcare may use the blockchain's encryption features to guarantee that only appropriate parties have access to medical data. These companies can guarantee that a patient may always access their information for personal use, and never have to worry about data loss while switching to a new provider by combining the usage of public and private blockchains.
2. Second-hand Industry
With immutable ledgers that track changes in ownership and upkeep of things, blockchain technology might have a significant influence on the market for used goods. Finding trustworthy information about second-hand products can be problematic as this information is susceptible to tampering, so blockchain will help in assuring that the information is transparent and truthful.
It will also streamline the process of getting information about the product, as specific data storage will allow users to get all the information in a single click. That way, potential buyers will
be able to easily detect certain product defects and make an informed decision when buying something second-hand. However, blockchain doesn't offer a quick solution for faulty information. In the end, user input is the most important factor when it comes to providing correct information, so blockchain only gives the ability to users to provide more information and doesn't eliminate fraud.
3. Supply Chain
The combination of blockchain with the supply chain is a well-known example of blockchain integration in a well-established industry sector. Supply chain organizations may set up distinct self-executing protocols to help with the various phases of shipment and distribution by using smart contract technology.
Among these are smart contracts that may instruct trucks to leave when a specific quantity of merchandise is loaded, automatically update inventory with each delivery, or even possibly halt a shipment of perishables if truck temperatures fall outside of the ideal range. That way, companies reduce the risk of product damage and protect customers from faulty products.
The unchangeable ledger feature of blockchain may also be used by supply chain management to keep an accurate and transparent record of shipments, enabling better tracking and the eradication of fraud and unaccounted inventories.
Immutable and decentralized records of all transactions and the digitization of physical assets by organizations can make it feasible to trace assets from manufacture to delivery or end-user usage, enabling more transparent and precise end-to-end tracking in the supply chain. Both consumers and businesses could have better visibility into the supply chain due to this improved openness.
Quick Links:Conclusion: Which Industry Sector Will Be Transformed Next By Blockchain 2022
In conclusion, blockchain has the potential to transform healthcare, second-hand industry, and supply chains for each industry sector. Its decentralization and transparency might prove to be very impactful on the world, as it will streamline processes and increase data security.
There is a high chance that blockchain will be omnipresent in companies around the world in the coming decades and that it will be the standard for data handling and storage.
