Blockchain is observed amongst those technologies having the capability to re-invent the industry in the 21st century. Considered to be amongst the quintessential technology for digital transformation, it is highly lauded by Fintech leaders. Recognized as the distributed, digital ledger, with a decentralized system, Blockchain is counted as the safest technology which ensures transparency. As per the reports by Markets and Markets research firm, the global Blockchain market size is expected to grow from US$3 billion in 2020 to US$ 39.7 billion by 2025, at a CAGR of 67.3% during 2020-2025,
A decade ago, when the financial institutions were drowning into economic recession, Bitcoin, which operates heavily on the Blockchain promised to reform, whereby traditional transactions were carried out. But Bitcoin was initially rejected and became a subject of heavy scrutiny by many countries and financial institutes. However, like any technology, the Fintech leaders were extremely curious to know about the concept that lies behind the functioning of bitcoins. And that’s when Blockchain started getting traction amongst the industry leaders. Still evolving, it is permeating in every possible sector that can benefit from its deployment. Organizations and enterprises are leveraging this technology to make their business transparent and lucrative. Additionally, while Blockchain has created a huge buzz to accelerate digital transformation, it becomes imperative to understand the prowess of Blockchain technology.
Importance of Blockchain Technology
Initially, this concept was utilized to make only financial transactions, but as the technology is getting bolstered significantly, it is getting deployed diverse domain.
As industry leaders comprehend the capability of Blockchain technology beyond its existing usage in financial institutes, it is now used in politics, healthcare, drug discovery, music, and property ownership, to mitigate fraudulent behaviors and cyberattacks.
Currently, more than 200 blockchains are getting utilized across industries. Some of the examples for the existing Blockchain are Libra and Ethereum.
Blockchain in Financial Institutes
Financial Institutes like banks and insurance companies are leveraging Blockchain technology to mitigate the incidents of frauds and scams. Banks like Goldman Sachs and People’s Bank of China are generating their digital currency for a feasible transaction between the customers. One of the biggest challenges often faced by insurance companies is to secure and maintain the third party transactions to thwart the insurance fraud. By leveraging Blockchain technology, the insurance companies can verify the authenticity of the customers, policies and transactions by analyzing historical records. Moreover, the big data that is collected by the companies can be easily monetized and managed. As the transaction is maintained throughout the system, every transaction made is available to all the parties.
Blockchain in Healthcare
There have been countless incidents where the patients’ data in a healthcare system gets tampered or hacked due to faulty networks and servers. By leveraging Blockchain technology, the patients’ information can be maintained in a streamlined format, which will be available across the network of systems. Since most tampering happens while sharing the patient’s file from one system to the other, Blockchain encourages secured transfer of patient’s data.
Additionally, it also helps in monitoring the medical supply chain and drug safety. Due to its decentralized system, the information about each shipping step gets registered in the digital ledger, thus maintaining the transparency. The ledger continues to record data until it reaches the consumer.
Blockchain in Politics
One of the most interesting usages of Blockchain technology is while elections. This technology has been viewed as the safest option to conduct free elections. In July this year, almost 30,000 votes were counted using block-chain technology, in the Russian parliamentary elections 2020. Moreover, the US postal service has also sought an application to the department of justice to conduct the USA elections 2020, by leveraging the Blockchain technology. As the technology functions as a digital ledger, the data of the voter gets stored in the database and is available to the public. Since each transaction has its unique code and the voter has an encrypted identity, thus maintaining the information throughout the system. This also reduces the risk of tampering the election results and encourages young voters to participate without being uncertain about the fairness of elections.
Blockchain in Manufacturing
Often corrupt practices can hinder the process of manufacturing. By deploying the Blockchain technology into the manufacturing and supply chain process assists in streamlining operations, gaining greater visibility into supply chains, and track assets.
Blockchain in Cybersecurity
Most of the organizations are now utilizing Artificial Intelligence and Internet-of-Things to perform operations. Different sources which enable the data gathering process for AI-models are often connected with third-party websites. These third-party websites sometimes infringe the security of the systems. By leveraging Blockchain technology to monitor the sources of the data, the cybersecurity of an organization can be maintained.
Moreover, as IoT connects various systems, by initiating a decentralized process, the incidents of malware will be mitigated.
Blockchain is playing a major role in re-inventing the industry. Its use is not confined to only financial institutes but it is leveraged in all the sectors. As the industry requires transparency while deploying any technology, the Blockchain chain certainly has a promising outlook.
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