- October 15, 2020
- Posted by: Lara Tlass
- Category: Blog
Many industries and institutions are finding blockchain technology useful; with several revolutionary features brought forward, many businesses are upgrading the way they do things and utilizing the superiority of the technology. Blockchain is fundamentally a distributed digital ledger of transactions that is copied and distributed across the entire network of computer systems with core advantages, such as transparency, where all data and information stored on the blockchain is viewable to everyone as every transaction gets recorded and displayed publicly. Another unique advantage is immutability; it is impossible to change or tamper with recorded data on the blockchain, the ledger can’t be manipulated to change stored information such as birth certificates, business agreements, or certificate of ownership. Finally, yet as important, information stored on the blockchain is unhackable; the main consensus is that anything stored on the internet is hackable, whereas the technology’s decentralized nature and the cryptographic algorithm makes it immune to attacks. Here we will explore the 5 industries that blockchain will change forever.
A relationship between banks and customers depends primarily on trust. By applying blockchain to banking, the customer experience can be enhanced. The technology allows for verifying and tracking transactions without the need for a trusted third party to be implemented as per the protocol. Customer data and funds are protected with the distributed digital ledger, once data is recorded in a block, it cannot be altered and this makes blockchain inherently secure and the customer’s funds cannot be hacked because for transactions to take place involves the use of decryption coded digital signatures that rely on public and private keys, this eliminated the risk of fraud. Other than security, blockchain also abolishes the risk of errors, duplication, and delays, as the automation takes place and the removal of middlemen, transactions take place instantly and rather than the typical 3 to 5 business days for international transactions to take place, it can be concluded in seconds with lower transfer fees.
The successful concept of raising funds with crowdfunding platforms is relatively cheaper and an easier process, yet some issues still exist, especially related to security, trust, transparency, and transactions. The solution for these issues is the application of blockchain technology that eliminates current issues with crowdfunding platforms. Crowdfunding platforms built on blockchain technology such as iOWNX which is the first application of its kind that is an equity-based funding platform that utilizes distributed ledger and Ethereum based iOWN Token, which allows for accurate data and record-keeping of all campaign activities, before the campaign is launched, during the funding stage and after the campaign is funded. This level of visibility into a project helps all parties involved, including the seekers, funders, and platform administrators. The power of blockchain is the way it works makes it impossible to hack or tamper with the information stored within it, crowdfunding platform users can find a sense of relief and comfort in using this blockchain-based facility as “you don’t need to trust the creators…but you can trust the system”. By having an immutable receipt, you can have proof of your contribution and the equity that is due to you which is something that cannot be guaranteed by the current system.
Real estate is known to be the largest asset class globally and anyone who has previously purchased or sold real estate would know the complications that come with it, from piles of documentation and paperwork to delays and approvals. By utilizing blockchain, all the required transaction records and documents can be stored securely with significantly less work and cost. – Through blockchain, fractional ownership is made possible. Generally, to acquire property, significant upfront money is required. Fractional ownership allows for a pool of investors to purchase a single property with profits from the rent/lease is shared by the pool members. – Smart contracts can be created and stored on the blockchain and the release of funds only when the conditions are met between the buyer and seller. Smart contacts also protect landowners, as many people in the past have lost documents, certificate of ownership, and title deeds due to war, fires, or hacking, and in some cases, it has been tampered with, as land dimensions decreased, names of landlords misspelled and in some cases, the land inheritance is erased. With the technology, all the documents are stored securely and cannot be tampered with. – With tokenization of real estate also coming to fruition; it allows for the process of creating a digital asset with tokens that represents a single property or a complete portfolio of properties on the blockchain and is secured by smart contracts.
Supply Chain Management
The supply chain involves a network of many parties such as manufacturers, logistics, suppliers, retailers, auditors, distributors, and consumers; with this large network comes to a lot of complications, such as lack of transparency, unethical practices, counterfeit products, lost or delayed well during shipping and quality assurance. Blockchain provides transparency and tracking of good that can’t be tampered with, a great example is jeweler giants De Beers that utilizes Tracr a blockchain based diamond tracker to trace stones from the point they are mined right to the point they are sold to consumers. This ensures the company avoids ‘conflict’ or ‘blood diamonds’ and assures the consumers buying the legal and genuine article. This can be applied to Organic goods shipped to retailers globally with all the source, farm location, and date of harvest information traceable and accessible on the blockchain for consumers to review and authenticate.
Innovation in healthcare is an extensive procedure and involves several parties from policymakers, businesses, and modern science. We have seen major improvements, thanks to the discovery of the internet and software advancement, which improved security, communication, and depository of medical records; yet there are core problems that could be resolved with Blockchain adaptation. – The lack of trust on a centralized platform has raised a few concerns with regards to medical records and patient identification. Patients have faced several issues such as lack of access to their health data, mismatch with the record and I.D or even moving their medical records to another institution without prior consent. – Blockchain can help both medical institutions and patients. Since the blockchain is immutable and traceable, patients can easily send records to anyone without the fear of data corruption, modification, or tampering. Similarly, a medical record that has been generated and added to the blockchain will be completely secure. – The patient can have some control over how their medical data gets used and shared by the institutes. Any party which is looking to get the medical data about a patient could check with the blockchain to get the necessary permission.
To conclude, blockchain technology is assured to take over the way we work, industries maintain data and access to information. Many organizations can benefit from this technology and the smart contracts that are designed to protect all parties involved in a secure, fast, and cost-effective manner. The popularity and adoption of blockchain are based on human nature and instincts. We typically like privacy, independence, cost-effectiveness, security, and trust. Blockchain offers no intermediaries and the way it works brings trust, security, and privacy in the way we consume, use, and share data.
You might also like: