Innovative and newer technologies are propelling around the world including robotics, machine learning, and artificial intelligence. All of these technologies are being deployed in a myriad of industries to automate and improve processes.
Beside that blockchain has also managed to place it on the list of emerging technologies. In fact, special attention is being paid to the potential of blockchain technology to withstand challenges related to economic development. The majority of people limit blockchain to financial institutions, which is not true. The opportunities are beyond financial institutions that include Fintech Startups and non-financial players.
How blockchain technology application can be utilized in other areas will be discussed shortly, but first, let’s have a look at some of the statistics.
- According to Stacey Soohoo, the global spending on blockchain solutions in 2018 will be around $2.1 billion.
- Netscribes predict as much as 8% of expansion of blockchain space every year to 2022
- According to IDG Connect Research 13% of Senior IT leaders, have clear and current plans to implement blockchain
- The global blockchain market is expected to be worth $20 billion by 2024
- 9 out of 10 agree that blockchain will disrupt the banking and financial industry. It is estimated that banks could save $8-12 billion annually if they used blockchain technology.
Now let’s move on to how blockchain technology can be utilized in other areas apart from financial institutions.
Making Smart Contracts through Blockchain
Blockchain can prove to be the best means of storing digital contracts that are self-executable and transparent. For instance, take an example of logistics that can be used in a number of use-cases. It can be linked to GPS data that releases payment automatically to the supplier and shipper after the package has been delivered.
Take another example of service supplier contract that needs to provide services equating to $1000. The condition, payouts and clients details are programmed into the smart contract. Once they reach the milestone, the invoice will be sent to the clients, which will be paid for the services received.
Similarly, if computers were given control over contracts, it would result in efficient business operation. It would help in dealing with invoicing annoyances where you have to remind the client several times about the payment. Thus, it is an outstanding opportunity without bearing the extra cost of hiring a middleman.
Blockchain as a Mean to Cross-Border Payments
It is never easy and never cost effective to transfer money out of your boundary line. However, the slow and delayed process is now simplified with the help of blockchain technology. It allows a seamless and cost-effective solution for payments to be done outside your country.
Imagine, if you are living in Greece and have to transfer money to your family living in the United States, how much time does it requires transferring the money to the local bank. However, the blockchain can speed up the process by cutting down the third parties involvement. According to a study conducted by Deloitte, “blockchain reduces the cost up to 2% to 3% of the total amount and provides guaranteed, real-time transactions across borders”.
Distributed Cloud Storage with Blockchain
Blockchain data storage will be the major disruptor in the coming years. At present, the cloud storage services are centralized and users have to trust solely on the storage provider. They have the control on all of your online assets.
On the contrary, blockchain can enhance security and cut the dependency. In some cases, users can rent out their extra storage capacity just like Airbnb allows homeowners to rent out their home space to the people looking for accommodation. Thus storing data in multiple locations will help in securing the online assets.
Use of Blockchain in Energy Sector
New and innovative energy initiatives like solar power and home power generation are filling the gaps of power supply worldwide. Smart meters can help in registering the consumed and produced electricity in a blockchain. It allows utilization of surplus energy in a different area where there is a shortage while the credits are given to the producer. In the future, the credits can be redeemed when the microgenerator needs additional electricity from the grid.
Digital Voting through Blockchain
Think of yourself last time you voted, after waiting in a long queue. Maybe next time you will get the chance of voting right from your home while sitting on your comfortable couch. Blockchain can be useful in tracking, counting and casting votes, without the risk of any fraud or lost record.
The biggest hurdle in electoral processes online is security. However, with the help of blockchain, voters can check whether the vote was successfully transmitted without revealing the identity to others.
Digital Identity
Digital identity is the biggest threat and prone to many frauds that includes device identification. Blockchain can help in dealing with device identification by holding the unique identity of each participating node in the network. It will help in extracting useful information and find the right device.
Online has always been a costly and time-consuming process. However, the blockchain has the ability to cut the intermediary intervention and offer companies to have network access to the same source of valid information.
Identity management when moved to the blockchain, users are able to control how they identify themselves and with whom the identity is shared. Of course, they need to register their identity, but once it is done, they don’t need to register for every service provider. Hence, blockchain technologies help to manage and tracking digital identities efficient and secure, resulting in smooth sign-in and less fraud.
Conclusion
The blockchain is without any doubt a major disruptor and will be an essential part of most of the industries and sectors. It’s time to analyze the need of blockchain in your industry and figure out what opportunities will it create for your business.
