5 Industries That Will be Revolutionised by Blockchain
Free Book Preview Money-Smart Solopreneur
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Blockchain is a very old yet new technology. Blockchain has been introduced into the world in the last decade and have come into the limelight in the last few years. Blockchain technology is going to revolutionise the finance, real estate, justice and every other industry. So what exactly is blockchain and how will it revolutionise the industry?
A blockchain is a growing list of records, called blocks, which are then linked using cryptography to another block forming a chain. Each block contains a cryptographic hash of the previous block a timestamp, and transaction data (generally represented as a Merkle tree).
By design, a blockchain is resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. And it makes nearly impossible for someone to modify the block unless changing and creating mess will all of the chain.
So this technology which might sound easy and fun is, in fact, groundbreaking. This can help resolve a lot of issues and industries which are facing trust and hacking issues.
Here is a list of industries which are being disrupted with the blockchain technologies.
1. Finance Industry
The Single most important use of blockchain was to help transact digital currencies. Bitcoin digital currency based on the blockchain can help you transfer bitcoin from any part of the world to another part in less than 1 hour. Bitcoin created a revolution in the financial industry when they made it possible simply without the use of a 3rd party organisation. Bitcoin is decentralized and all the transactions happen without the use of a centralised organisation.
Also, bitcoin solves one of the biggest problems in the world right now, transparency, all the transaction records in the bitcoin ledger is public.
Future of online transactions and transfer is bitcoin or blockchain. Many of the online money transfer companies such as MoneyGram, western union or state banks are using the same.
2. Gaming Industry
There are a variety of ways blockchain is being applied to the video gaming industry. Over and over above its being used as a payment mechanism and gateway for game purchases, Bitcoin transactional technology could be used to create and manage in-game currency accounts. When a player wins various rounds, stages, levels and competitions, they are rewarded with coins, gems and other shiny collectables that signify their ‘level of worth’ in any given game -- and blockchain could be used to manage this backbone function.
3. Social Justice
Enterprises and agencies could potentially use blockchain technology to securely record and verify inventories, monitor resources and redistribute assets. Via these means, the technology can pave the way toward a sharing economy. Inequality, income disparities and consistent income are serious problems in modern capitalist societies around the globe, and new technologies threaten to enhance these problems. Blockchain is a resource that can empower a sharing economy, and it can potentially accelerate the process of ensuring full inclusion in economic prosperity, rather than contribute to conditions that promote inequality and conflicts.
4. Social Networks
Social networks are nowadays a database of user information, and the likes of Facebook, Twitter, Instagram, and more, are merely an exchange of our aggregated information to provide their marketing clients better targeting for their advertising and campaigns.
A blockchain-based approach to social networking addresses this by establishing a decentralized approach to connectivity. By getting rid of the central server, there is no single entity that can enforce such monitoring and controls over user-generated content.it being the first movers in blockchain based social networks.
Blockchain solved the problem of security, the decentralized nature of the blockchain, ensures privacy and security through a distributed consensus mechanism.
Apart from messaging, peer-to-peer commerce is another area being explored by social networks. Blockchain can really help these social networks to create a transaction network and help ease of the transactions over the network.
5. Transportation Industry
Municipalities and local government could connect sensors for street signs, traffic lights, vehicles and other items to the IoT, enabling the rerouting of traffic for maximum efficiency. Scientists hope that by using blockchain in this manner they can reduce commute times, traffic congestion and vehicle emissions. The blockchain technology can also provide potential conveniences such as vehicle parking and be charging location and payment; traffic ticket payment; and accident and maintenance monitoring services.
6. E-Commerce Industry
Amazon is the biggest player in the e-commerce world is working to enable blockchain in their current model and use the benefits of blockchain to help their users worldwide. Blockchain can help small businesses to prove that they are trustworthy through the blockchain. Compared with a credit card or mobile payments that are commonly used in current e-commerce platforms, encrypted digital currency is a more secure payment tool.
According to statistics, 1–3per cent of e-commerce transactions around the world currently generates transaction disputes, and the blockchain’s distributed ledger can effectively protect consumer rights because each transaction record is recorded on the blockchain which cannot be tampered with.
The forecast of analysts says that bitcoin will achieve a total of 1 trillion worth of market cap in 2020. However, forward-thinking individuals see the value of blockchain beyond its original application for digital currency transactions. While the excitement about bitcoin is tempering, there’s great interest in its underlying blockchain technology. It’s hard to not see the value in cutting out middlemen, increasing security and saving precious time and expenses.