Top tips is a weekly column where we highlight what’s trending in the tech world today and list out ways to explore these trends. This week, we’ll discuss how blockchain is revolutionizing industries today.
Crypto bros since 2008 have known blockchain technology as a trustworthy platform where they can trade their Bitcoin and other cryptocurrencies. Originally created under the pseudonym of Satoshi Nakamoto, blockchain allows for digital transactions without any intermediaries such as banks, financial institutions, or government agencies, effectively creating a decentralized and distributed digital ledger. It does so by creating records, or “blocks,” that are linked to the previous ones, thus creating a chain of data that can be verified by a network of miners, and it cannot be tampered with or altered.
Although initially developed as a safe technology for cryptocurrency transactions, bitcoin technology has evolved into a lot more than just that. The market share of blockchain is expected to grow at a rate of 87.7% until 2030, from a valuation of $17.46 billion in 2023. Financial institutions, supply chains, and healthcare industries are all showing keen interest in fully adopting this technology to bolster their operations. Here, we’ll pick out five top applications for blockchain in industries that exist today.
1. Supply chain management
Blockchain and supply chain management have been associated for a while now. This technology has empowered companies with a whole new level of visibility and accountability for the products that go through their supply chain. Companies that use blockchain, like Costco and Walmart, are now in a better position to improve their food quality and safety standards thanks to the visibility they now have into their supply chain.
Now, companies can also keep track of their products from manufacturing to retailer, reducing the chances of conflict and counterfeit, especially for high-value products. They can also maintain a digital ledger of every transaction made, right from procurement to delivery, allowing them to keep immutable digital records.
2. Smart contracts
Blockchain technology serves as the foundation for smart contracts, which are essentially automatic digital contracts where the terms of the agreement are directly written into code. Since these contracts operate on decentralized blockchain networks, there is no central authority that governs their execution. There is no need for trust from the signing parties since the terms and conditions are enforced automatically and transparently.
Since these contracts are written in code, and the blockchain records cannot be tampered with, these contracts are entirely immutable and cannot be altered. Smart contracts automatically trigger specific actions when certain conditions are met. For example, a payment can be automatically made when goods are delivered and verified. This helps reduce human intervention by a lot and speeds up the process.
3. Decentralized finance
Blockchain has left an indelible impact on the world of finance by eliminating the need for banks or other intermediaries for financial services to transact. Decentralized finance (DeFi) allows users to borrow and lend money from each other without any need for banks. Smart contracts allow lenders to deposit money into a liquidity pool, and borrowers can take the loan against collateral, such as cryptocurrency.
Blockchain technology also allows users to create a synthetic representation of real-world assets, such as stock, real estate, and other valuable commodities. Crypto tokens can give users a representation of ownership over real-world assets, such as gold, and also assign value to them, enabling users to trade these assets digitally.
Overall, blockchain technology is transforming the financial ecosystem by providing more accessible and efficient financial services as well as the opportunity for faster wealth creation.
4. Healthcare
Blockchain is improving how the healthcare industry handles patient data security and transparency. Patients have total control over their personal and medical data and can share the data with their healthcare providers completely hassle-free.
Using this technology, pharmaceutical industries are also empowered with visibility into their entire supply chain, ensuring authentic and safe medications are being delivered. It also ensures that remote monitoring and telemedicine data is securely stored with restricted access and shared with healthcare providers in real time.
Blockchain also helps to streamline the process of health insurance claims, reducing fraud, errors, and delays. Smart contracts can initiate payments every time all the criteria are met, reducing the time taken for insurance claims to go through.
5. Intellectual property and royalties
Blockchain can provide transparency, security, and automation, making it the ideal technology for handling complex intellectual property (IP) rights and ensuring timely royalty payments. Using blockchain, users can create a time-stamped record of ownership of their IP, greatly reducing the likelihood of any IP disputes or claims.
Users can also license their IP, such as music and art, in decentralized marketplaces directly to consumers or businesses without the need for any intermediaries. IP assets can also be tokenized, i.e, represented as tokens, which can be traded or sold on blockchain platforms. Digital content, such as music, videos, or articles, can also be protected by blockchain from unauthorized use and piracy.
There’s no breaking this chain
Blockchain technology is revolutionizing industries by equipping them with increased transparency and efficiency. From streamlining supply chain management and automating financial transactions through DeFi to enabling secure IP rights and royalty distribution, blockchain offers a robust framework for tackling complex challenges while also paving the way for a more decentralized and equitable future.
