Benefits Of Blockchain In Different Industry
The digitalization of the business environment has increased the amount of data generated. This data is very crucial to companies and to keep this digital information secure they tend to build a wall around this data. However, this leaves data vulnerable to people that can find an access point inside the walls.
Blockchain technology does not allow changes to transactions and data once written without getting a majority of the vote through a consensus method. This decreases the possibility of backdoor transactions due to the departure from the traditional wall. This makes blockchain invaluable for business organizations in different industries trying to safeguard their data.
Blockchain technology has the potential to benefit almost all sectors. According to some experts sectors that can be benefited the most includes education, healthcare, finance, and government. To understand how it exactly benefits different industries, let’s see some of them briefly.
Benefits in Trade Finance
Trade finance has benefited immensely from the blockchain giving an easy solution to reform its current problems. The benefits of blockchain in trade finance include:
- Data integrity: Blockchain has helped the trade finance industry improve in terms of data integrity, proper asset provenance, and authenticity.
- Streamlined process: Blockchain has improved overall process efficiency with automation through dApp and smart contract capabilities. These apps can carry out a real-time settlement with an error-free process due to the elimination of intermediaries.
- Programmable: Blockchain has now enabled organizations to code their multiple aspects of the business including data privacy, identity management, and much more.
- Market reactivity: Blockchain is offering customization to businesses using digital security. Meaning that trade finance organizations can make changes according to their needs.
- Cost reduction: Businesses can drastically reduce their cost by implementing automated networks including transactional, infrastructural, and operational.
Blockchain creates a secure environment for business organizations for fast and secure transactions at low cost, high security, and amazing customer experience. Businesses can also build services such as AI and machine learning (ML) on top of blockchain if they want to allow retailers to take decisions faster and bring transparency.
Benefits of Blockchain in Healthcare
Healthcare is one of the fastest-growing sectors when it comes to the adoption of technology. This is due to their need to completely change to be more effective in providing better service to patients. The benefits of blockchain in healthcare include:
- Drug traceability: Blockchain provides real-time traceability in a decentralized network. This system can improve drug traceability as there are almost impossible chances for it to get hampered.
- Electronic Health Records(EHRs): Blockchain can enable healthcare organizations to easily manage and record a patient’s electronic records.
- Universal patient profile: Healthcare organizations can use the decentralized ledger to unified patient profile so they don’t have to carry their papers. Everything can be stored and shared through a secure ledger which will also stop the errors.
- Better clinical trials: Organisations can store patient’s data is a secured decentralized network which can be used to do better clinical trials and research. This will improve the chances of developing drugs for new diseases.
- Securing data: Blockchain-based data allows access only after authorization by multiple people through digital signatures. This could regulate availability while simultaneously maintaining the privacy of health records.
- Payment: Blockchain can reducing fraud in healthcare payments is the whole community of people, hospitals, doctors, patients, and insurance companies becomes a part of the overall blockchain.
Benefits of Blockchain in Energy Sector
The energy industry has always been an important sector for governments. It has three major department distribution, allocation, and production and without proper energy management, it becomes hard to provide value to its economy. This industry is not just owned by the government but private players also. These players can benefit through the implementation of blockchain. The benefits of blockchain in the energy sector include:
- Reduced costs: Blockchain can drastically reduce the costs associated with infrastructure and operations in the energy sector.
- Improved transparency: Businesses can improve transparency through blockchain by using distributed ledgers.
- Environmental sustainability: Blockchain helps overcome legacy energy sector efficiency issues and provides the network. It makes it possible to store, produce, and distribute energy efficiently and help make the environment sustainable.
Additionally, the micro-generation of electricity has also become a major trend. Several new energy initiatives are filling in gaps in power supply such as solar power and home power generation. Blockchain can also play a crucial role when it comes to registering produced and consumed electricity in smart meters.
It allows the consumption of the energy in a different location by providing credits to the original producer. Blockchain provides wide-ranging possibilities; hence, there is no doubt about its potential to enhance the quality of service. It can deliver and improve the integrity of confidential data.
Benefits of Blockchain in Real Estate
Coronavirus and recession are impacting the real estate sector. In today’s time buying a property has become a frustrating task. However, the application of blockchain can bring a new outlook on how the sector operates. The benefits of blockchain in the energy sector include:
- Identity Verification: Blockchain can help both investors and tenants create digital identities for verification and other work. It can make the KYC/AML procedures more streamlined with the help of proper identity management. It will also make the process of documentation easy and shareable.
- Real-time accounting: Blockchain can enable real estate dealer with more real-time accounting to make traditional paperwork easy.
- Property sale: Blockchain can make property sale automated with the implementation of smart contracts. It can make legal agreements traceable and executable.
- Tokenization: Blockchain can also make tokenization possible. In simple words, the properties can be rented out for a period using pre-defined code.
Benefits of Blockchain in Government
Many governments have strongly opposed the idea of crypto-currency, however, the importance of blockchain cannot be undermined. There are several ways governments around the world can utilize blockchain and the benefits include:
- Finance management: Blockchain offers transparency, efficiency, and effectiveness in transactions and data. Governments can utilize this feature to keep their allocation of budget transparent.
- Elections: Transparency can also be utilized in the election process to eliminate the chances of fraud.
- Identity management: The government can utilize blockchain for identity management if every citizen. This will help them manage their credentials, transactions while managing data.
Also, several departments in government delay the exchange of information. Blockchain can help them link the data between several departments to ensures it’s released in real-time. Adoption of blockchain technology cannot only help the government improve transparency but also keep corruption in check.
Benefits of Blockchain in Defense
The defense sector in almost every country holds a unique power in the economy. The benefits of blockchain in defense sector include:
- Safeguarding Data: Blockchain can help the sector safeguard national security by preventing unauthorized access in critical defense infrastructure. This includes operating systems and network firmware.
- Decentralize Network: Blockchain can distribute crucial information across multiple data centers to ensure security against attacks. The only way to access important network and hardware equipment will be by ensuring consensus-based access for modification.
Benefits of Blockchain in Law
In this industry, there is always a chance of fraud and data breach. The Law sector needs to be updated about every day to day activity in their network. The benefits of blockchain in healthcare include:
- Secure Storage: Blockchains can help low firms store huge amounts of data securely including entire contracts.
- Payments: Smart contracts facilitated by blockchain can enforce contract performance. This will eliminate the need for a middleman such as a legal firm for payments. Smart contracts can be easily enforced electronically to create a powerful escrow by taking a single party out of the control.
As we venture more deeply into the world of technology it is very important to explore. Blockchain is one such technology that needs to be a venture to be understood. Through the years, its importance has only increased as its implementation is not only offering benefits but also opportunities.