The adoption and application of Blockchain disruption in industries is rapidly growing and expanding. It is a technology innovation that is challenging a lot of business practices.
Blockchain technology, according to Technology of Future, is “a decentralised, distributed ledger system that allows for secure and transparent transactions between two parties without the need for a trusted intermediary.”
Blockchain offers a lot of opportunities especially in the areas of speedy transaction, security, privacy and transparency.
However, only a few industries are tapping from this amazing tech solution. Parvin Mohmad, observes that “many industries are discovering that blockchain technology is superior to current methods for completing critical elements of work”.
This article explores the industries disrupted by blockchain technology
Top 5 Industries Poised for Blockchain Disruption
1. Blockchain Disruption In Banking and Finance Industry
Blockchain technology is already providing top level financial services to businesses, people, governments and corporations around the world. It is bridging the gap of financial inclusion, especially in third world countries where millions of people have not reaped the benefits of traditional banking.
For example, the use of cryptocurrencies like Bitcoin, Ethereum, BNB, Doge coin, Shiba, etc allows anyone from any location to transact with other users from around the world. While it takes traditional banking systems to take several hours, sometimes days to completely process financial transactions, it takes blockchain only about a few minutes.
Technology of the Future observes that to really uncover what it is doing in the banking industry; you must understand its use. The tech expert goes ahead to discuss transparency, efficiency and cost reduction as some ways we can experience blockchain disruption in industries.
In real life though, blockchain impact on industries is really profound in financial transactions. It is very fast and reliable for international and peer to peer transactions.
Such transactions take some traditional banks about three to five days to completely process while it takes blockchain a matter of seconds or minutes.
Also, the application of blockchain in the banking and finance industry is experienced in verification. Traditional banking systems still depend on manual methods of verification which is tiring, and takes several days to complete.
But with the use of blockchain technology, verification is pretty fast and secure too. Blockchain verification system is reliable for risk reduction and fraud detection. To
With IBM predicting that 15% of banks will be using blockchain in the year 2027, the technology offers a secure and almost tamper-proof way of verifying the identity of customers.
2. Blockchain Disruption in Supply Chain Management Industry
In the supply chain management sector, blockchain offers a platform where they can monitor and record activities with a high level of transparency. According to Consensys, the technology offers the following benefits;
· Transparency in purchase and delivery of consumer goods
· Effective and efficient accurate asset tracking
· Enhanced licensing of services, products, and software
The use of blockchain technology in the supply chain ensures efficiency in management and deliveries. It also reduces unnecessary delays, saves time, resources and wastes.
Furthermore, if you are looking for ways to enhance your supply chain business in the areas of traceability, transparency and tradability, blockchain is your go to tech solution.
With the technology, supply chain management experts improve their mappings and visuals for monitoring purposes. It also generates immutable data to consumers, offering valuable, verifiable information for informed decisions.
If it has to do with transparency, blockchain helps supply chain experts as well. You can explore Ethereum for best results. Blockchain can provide the required certifications for public data views/handling which can be verified by other parties – third parties inclusive.
Through traceability, blockchain also offers amazing benefits to supply chain investors. You can have a modernised marketplace with monetisation plans. In other words, you can tokenize your assets.
Supply chain giants like Provenance, Fluent, and Blockverify are examples of blockchain companies working in this space.
3. Blockchain Disruption in Cybersecurity Industry
You may be asking, “how does a technology with so much transparency offer so much security”? That is one amazing thing about the blockchain. It does not play around with security.
This is why Infosys agrees that “Blockchain offers a different path toward greater security, one that is less travelled and not nearly as hospitable to cybercriminals.”
Cybersecurity in the blockchain way reduces a lot of security risks This is why, it’s open to the public ledger and uses advanced cryptography for data encryption. It also verifies ownership and checks for integrity. Its authentication methods patterns are top-notch
Infosys further acknowledges that Blockchain eliminates security weaknesses using collaborative consensus algorithms. An advanced security method that watches for malicious behaviours and acts on its own to beef up security.
Blockchain offers strong cybersecurity to industries in the areas of data protection and privacy, smart contract security and public key infrastructure management. However, this does not mean business should not practice other cybersecurity best practices.
4. Blockchain Disruption in Forecasting Industry
Blockchain’s transformative potential in industries stoles into the Forecasting business. It is a viable tool for research, consulting, analysis and even forecasting. You can use Blockchain technology to collect and analyse data for enhanced predictions.
Blockchain disruption in industries is also a viable tool for solving forecasting problems.
Ramya Donekal claims that Blockchain improves the quality of data for demand forecasting. It is important to therefore use this technology to increase sales and offer services that will make customers happy. The tech scholar further states that Blockchain technology uses data safety to its advantages in two ways; creating trusted network-wide data and keeping proprietary data separate and secure.
Blockchain uses quality data in new promising ways. To this end, Ramya posits that businesses can leverage the blockchain technology to improve data integration from all stakeholders in their supply chain.
5. Blockchain Disruption in the Insurance Industry
The idea of Blockchain technology largely has something to do with trust. It offers very interesting managerial methods for trust. For example, with blockchain technology, data validation in insurance schemes will be very smooth.
Also, it is very easy to connect real world data to Blockchain’s technology smart contract. So, if you run an insurance business that deals with real world data, the blockchain is your number one tool.
In the insurance landscape of business, Blockchain has all the needed potential to lead the change. The technology can help in achieving the following;
· Save time
· Cut costs
· Improve transparency
· Comply with regulations
· Build better products and markets.
Consensys identifies 7 use cases of Blockchain technology for Insurance.
Registries of high-value items and warranties
Blockchain is shaking up insurance by offering reliable ways of recording histories and ownership in secure ways.
The technology offers these services in such a way that it reduces the risk of fraud. This could bring much-needed transparency to the industry.
Know-your-customer (KYC) and anti-money laundering (AML) procedures
Blockchain simplifies the traditional time wasting KYC and AML processes. It ends up creating a database that organizations can easily and quickly utilise. With this, in conjunction with blockchain’s data quality values, there would be no errors and no more wasted time
Parametric (index-based) products
In the world of parametric insurance, blockchain’s magic touch would automate practically everything. Policies could be written in smart contracts, and when a specific loss event occurs (thanks to a digital feed oracle), the contract executes itself. No need for manual intervention – it’s all done seamlessly.
Reinsurance gets a boost too. Blockchain would let insurers, reinsurers, brokers, and regulators share data instantly and securely. Risk modeling, audits, and compliance checks would happen like clockwork. Imagine all those towering risk contracts neatly time stamped on smart contracts – it’s a game-changer.
Claims handling? Say goodbye to shady practices. Blockchain would create an unbreakable, industry-wide record of claims. Fraudsters would have a harder time, thanks to the elimination of data silos. Plus, customers would have more control over their data, deciding who gets to see what.
When it comes to distributing insurance, blockchain’s coordination abilities shine. Multiple parties can work together seamlessly on an online marketplace. Customers can access a bunch of carriers on one platform, managing all their policies hassle-free. And transactions? Lightning-fast, easy, and cheap.
Peer-to-peer (P2P) models
Blockchain uses smart contracts and automation to keep funds safe. This allows token-based decisions to thrive. This approach can be the shining light for insurance business.
Blockchain Disruption in Industries – Other Industries
Here are other industries that are currently being shaken by blockchain technology.
Blockchain Disruption in the Cloud Storage Industry
A central server’s data is vulnerable to attack, data loss, and human mistake. This calls for strong security against unauthorised access and malicious attacks. Blockchain technology increases the security and resistance of cloud storage.
Solana, Avalanche, Polkadot, Cosmos, and NEAR etc are top examples of companies that use blockchain storage.
Blockchain Disruption Government
Many governmental processes are frequently sluggish, confusing, and dishonest. By using blockchain-based solutions, government operations might become much more secure, efficient, and transparent while dramatically cutting back on bureaucracy.
Governments can use blockchain in the following areas;
· Foreign aid
· Government smart contracts
· Law enforcement
· Recording keeping
· Central banking
· Public healthcare
Blockchain Disruption in the Healthcare Industry
Another sector around the world that primarily depends on outdated technology and is vulnerable to change is healthcare.
As a result of their old traditional infrastructure and lack of a secure platform for data transfer and storage, hospital data commonly become targets of hackers.
There are several ways blockchain technology can work in the healthcare sector. For example, Hospitals may be able to securely store data, such as medical records, and exchange them with authorized personnel or patients.
This will also increase speed, data security, and even diagnostic accuracy.
Examples of areas in the healthcare where blockchain is applicable;
· Medical record management
· Clinical trials
· Prescription drug traceability
· Supply chain management
· Medical device management
· Drug development
· Personalized medicine
· Health insurance
Blockchain’s Transformative Potential in Shopping
Your trust in the retail system and your trust in the store or market are intertwined when you shop.
When a retail utility is powered by decentralized blockchains, it functions in a unique way: it will easily link buyers and sellers without the use of a middleman and the fees that go along with it.
In these scenarios, trust is obtained through built-in reputation management systems, exchange security, and smart contract systems.
Here are examples of big retail companies that use blockchain technology.
· Home Depot
· De Beers
· LVMH Group
Blockchain Disruption in the Energy
Energy management has always been a very centralized sector of the economy. Energy producers and consumers must use the public grid or a reliable commercial intermediary instead of transacting business directly with one another.
Blockchain is changing the energy sector in the following ways
· Energy Trading
· Peer-to-Peer Power Trading
· Electric Vehicle Integration
· Smart Grid Management
· Carbon-Free Energy (CFE)
Blockchain technology has emerged as a disruptive force across a wide range of industries, fundamentally changing the way businesses operate and deliver value. The impact of blockchain is profound and multifaceted, with each industry benefiting from its unique features and capabilities.