What industries is blockchain revolutionizing today?

Blockchain technology is not just the public ledger that keeps track of your Bitcoin balance. It is a versatile framework for data management, encryption, and security that can be applied to many different industries. Organizations around the world are starting to see it and their best people are working on new applications every day.

Banking

The banking sector is being profoundly revolutionized by the advent of blockchain technology. As cryptocurrencies begin to become an increasingly legitimate competition for fiat currencies, the industry is starting to adapt rather than resist this new way of handling finances.

Bitcoin and other cryptocurrencies already offer great options for transferring money, with lower per transaction costs in many cases. The other key advantage is that there is no risk of payment failures, such as with bad checks or insufficient funds returns. There is still room for improvement here, however, with transaction speeds being the main concern.

Many established financial institutions are starting to partner with existing cryptocurrencies or initiate research to develop their own. JPMorgan, Citi, and Wells Fargo are already implementing blockchain technology to some extent, with further adoption coming.

Immovable

Buying a property is often a complex task that involves coordinating roles and responsibilities for many separate parties. There is the buyer, the seller, their agents, their lenders, etc. Smart contracts are one aspect of blockchain technology that could be used to simplify the process.

A smart contract is an agreement within the blockchain itself that will have certain actions it can take and certain conditions. This could allow the transfer of title to a property when payment is received. This is what paper contracts are supposed to do, but they can only force the parties to act after the fact through legal action. Instead, smart contracts are fully automated.

One of the main benefits of implementing blockchain technology in real estate is that it will provide a secure and immutable record of all transfers and transactions. You won’t have to rely on paper documents to determine ownership. The chain of previous owners will be securely stored in the blockchain.

Supply chain management

You can buy a home once every several decades, so the number of records you will need is relatively scarce. But what about industries that complete millions of transactions every day? Managing the supply chain has always been an incredibly complex task, and it’s a task that blockchain technology could make much simpler.

Companies rely on a wide variety of software and protocols to keep track of what is happening where and when in supply chain management. Blockchain technology could provide much more reliable record keeping and produce a record that can be watched by all parties involved.

Making automated record keeping more reliable will help reduce waste and lessen the impact of human error. The benefits even go beyond that, however. Blockchain technology can make it impossible to spoof supply chain information, helping to ensure that fair sourcing is actively enforced.

Cyber ​​security

Blockchain technology is unique because it is decentralized. It is used in cryptocurrency to keep a person’s money safe even without physical control by implementing reliable encryption. These same principles could one day be used to secure all kinds of sensitive data, as well as to identify fraudulent activity like the recently exposed Yuan Pay Group business scam.

Consider the money kept in your bank account. It is conceivable that someone could go into the bank’s systems and simply replace your account numbers with a zero. The decentralized nature of blockchain technology prevents such an event from happening, stopping all access to your cryptocurrencies without your private key. Records, identification and other personal information could be secured in the same way.

The applications for higher security are virtually limitless. Just like in supply chain management, organizations can implement a chain of custody for sensitive information such as medical records. We are already seeing organizations implementing blockchain technology for shareholder voting. This ensures that the collection of votes is completely secure. How long will it be before we use this technology in real elections?

What’s the next step for Blockchain technology?

While some applications of blockchain technology like banking and cybersecurity seem clear, people are coming up with innovative ways to apply the same principles to other areas. It’s hard to say how much of an impact blockchain technology will have in the future.

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