Blockchain is a hot topic of discussion as more and more businesses are exploring its potential applications. The blockchain is an innovative technology that not only powers Bitcoin but also holds the potential to revolutionize the industries. And today, we are going to explore the industrial applications of blockchain to understand what this technology can do beyond cryptocurrencies. But before that, let’s take a quick look at what blockchain is.
What is Blockchain?
The World Economic Forum explains blockchain as a decentralized database, which records information in a chain format, linking one piece of data to another in a cryptographically secured way. The data on a Blockchain is stored in so-called blocks and each one is verified by network nodes. There are two types of Blockchain- Public Blockchain and Private Blockchain and both have similar functionality. However, in Public Blockchain such as Bitcoin and Ethereum, the identity of participants remains anonymous and every transaction is visible for everyone to see. Private Blockchain, on the other hand, is used by organizations because it allows access only after verifying the identity of users.
Blockchain Applications That Are Transforming Industries
Lately, Blockchain has become a buzzword among entrepreneurs. The technology which initially dominated the financial sector is now making its way to other sectors also. The innovative entrepreneurs are now developing more blockchain applications and are actively exploring areas other than cryptocurrency. Here are the prominent industries that have already adopted blockchain technology.
- The Finance Industry
Blockchain has become a favorite tool of professionals in the financial sector. As you might already know, blockchain eliminates the need for middlemen. Due to this feature, blockchain enables peer-to-peer global transactions, while keeping the network safe and transparent. The payment services such as PayPal process international payments in exchange for a fee per transaction. Besides, the cost involved, these P2P payment services also put some restrictions like minimum transfer amounts. But now, blockchain is solving the payment transfer woes of businesses. The blockchain technology also offers other solutions to solve several significant problems faced by the banking industry. Blockchain inherently has a secure system which eliminates human error and protects the data from possible tampering. It provides permanent records of the millions of transactions that take place in the banking industry every day.
- Healthcare Industry
Blockchain technology is transforming the healthcare sector. A major problem faced by the health industry is data management challenges such as patient consents, data ownership, and more. Blockchain is a distributed ledger technology that can overcome the existing challenges by securing sensitive information. By making the process of sharing and storing medical data and records more secure, blockchain can minimize error, fraud, and incidents of lost records. A decentralized system can efficiently exchange a patient’s medical history, like blood group or disease among health organizations in a secured manner.
- Supply Chain Management
The supply chain is an extremely complex field that deals with multiple intermediaries from production to purchase stage. However, blockchain is now adopted by several companies to improve their supply chain management. The blockchain technology offers traceability and cost-effectiveness which is immensely beneficial for the supply chain management. Now, it is possible to track the movement of goods, their origin, quantity, and many other crucial details.