If you still believe that banking and cryptocurrency exchange are the only industries impacted by blockchain technology, then think again. Be it insurance, retail, healthcare or even the music industry, blockchain has the potential to disrupt almost every sector in the near future. So far, blockchain technology has primarily focused on the exchange of cryptocurrencies like Bitcoin, Ethereum and Ripple, however, it is highly anticipated that this emerging technology will have a far greater impact across industries and change the way business is conducted across the globe.
Here are 10 major industries that are going to be affected by blockchain technology in coming years.
1. The Banking Industry
The banking industry is prone to financial frauds and record manipulations and here the blockchain technology can act as a savior in the future. At present, banks store and transfer money for their customers with some inherent risks for misadventure. The blockchain is a secure ledger system that can store records in a more trusted way and handle millions of transactions with a significantly lower risk of cheating in comparison to the current banking system. Further, it will eliminate intermediaries (banks) for the approval of transactions between consumers, thus facilitating faster and cheaper payments through the decentralization. Additionally, there is a lower risk of a collapse or hijack on a blockchain system, owing to the absence of a central vault.
2. The Real Estate Industry
Real estate transactions involve lots of paperwork and the process is prone to delays due to bureaucratic hurdles. Blockchain technology can completely transform this scenario, as property buyers/sellers can track, verify and even digitally sign key documents — like tax records, deeds and, insurance — pretty faster. Further, the technology can create smart contracts that eliminate the scope for hefty the commission charged by middlemen. In this system, funds are released only when certain conditions are fully met.
3. The Healthcare Industry
Sharing and storing medical records securely have been a major challenge for the healthcare providers, and the current system is prone to frauds, errors and lost records. Blockchain technology has the potential to solve this problem by allowing doctors and authorized professionals to access your medical records securely and easily. Additionally, blockchain will aid in accessing your health records anytime from anywhere, facilitating doctors with lifesaving information in case of emergency.
4. The Startup Industry
Startups are always worried about the security of their business ideas and it’s crucial to find the right investors for their business to survive and grow. Similarly, investors also look for right business opportunities to avoid losses. Blockchain technology can help companies summarize information about their product or service and find the right investors without any data security lapse.
5. The Legal Industry
Blockchain technology can influence the legal industry in a big way, as storing and verifying documents and data are crucial aspects of the law. Legal records such as deeds, wills of the deceased can be safely stored on the blockchain and will be quickly authenticated. The technology can effectively do away with legal challenges while dealing with inheritance issues, including cryptocurrency assets.
6. The Cryptocurrency Exchange
If we believe the trends, digital money is the future of all financial transactions, and thanks to blockchain technology for ensuring its secure storage and transfer. The technology allows the hassle-free exchange of cryptocurrencies and that without any trading fees or exchange hacks. However, cryptocurrency transactions do require massive computing power and high technical skills to avoid failed transactions, and thus saving time and money for its consumers.
Rigging of election results could be a thing of the past if the current voting system is secured with blockchain technology. Right from voter registrations to identity verification to voting tallying process, blockchain can effectively guarantee the authenticity of every vote polled, thus making way for free and fair elections in the future.
7. Global Stock Trading
Blockchain technology has made significant inroads into domains like banking, cryptocurrency, supply chain management and safe record keeping. Owing to its ever-growing reliability in storage and transfer of financial data around the globe, the technology has all the potential to disrupt global stock trading in a major way. Prominent global stock exchanges such as NASDAQ, Tokyo Stock Exchange, and Securities Exchange Board of India (SEBI) have already started using/testing blockchain technology for some of their transactions.
8. Music Streaming
Music industry loses a significant percentage of its royalty due to piracy of digital records, illegal download, and distribution of music, and improper rights management. Blockchain technology can enable companies to prevent piracy to a large extent by tracking downloading activities by creating smart contracts.
9. Global Remittance Industry
Money transfers across borders are often marred with problems including but not limited to slow processing times and high transaction costs. Blockchain technology will allow users to conduct international money transfers much faster and at much lower fees. At present, the cost of international remittance is close to 5%, but with blockchain, it is poised to go down to as low as 1%. What’s more, the technology ensures guaranteed real-time transactions across borders, thus significantly reducing the risk of loss due to currency rate fluctuations.
10. Cloud Storage Industry
Centralized storage services offered by likes of Amazon Web Services and Microsoft Azure are vulnerable to data loss, cybersecurity threats, and user error. Blockchain technology uses a decentralized storage system, disseminating data over a massive grid of volunteer computers. The technology not only allows users to rent out any additional storage space without any fuss, but it also ensures that data is retrieved much faster than the traditional storage technology. Moreover, users of cloud storage technology are in for some significant cost saving.
In a nutshell, Blockchain is the futuristic technology that is poised to disrupt almost all industry verticals sooner than later. Is your business prepared to get the best out of this innovative technology?