How World's Leading Industries Got Disrupted by Blockchain Technology

Digitalisation is important to the success of a more cohesive and sophisticated world. It has created countless business opportunities and has played a significant part in making people's lives easier, more affluent, and more connected. The twenty-first century has witnessed the pinnacle of the digitalisation revolution, whether it be the rapid acceptance of IoT technology, 5G technology, or the incorporation of artificial intelligence (AI) into human lives. Blockchain is one such game-changing and innovative tech that has created countless possibilities for sectors while also contributing to a safe digital economy. Developed in 2008 by Satoshi Nakamoto as a support structure for the most popular and first cryptocurrency, Bitcoin, Blockchain technology has progressed to become much more than just an architecture for a digital currency. It has been a hotly discussed topic due to its rapid acceptance and the multiple benefits it provides.

This post aims to shed light on blockchain technology and why it's attracting serious investments from leading industries. Before moving further to the main topic, let's get a brief overview of blockchain and why it is considered a groundbreaking technology. This post seeks to shed some light on blockchain technology and why it attracts significant investment from major industries. Before we go further into the meat of the talk, let's look at blockchain and why it's such a game-changer.

A Synopsis of Blockchain Technology

Blockchain is a database that stores a record of any information, such as transaction details, a directory of stakeholders, personal information of people working for a certain organisation, or pieces of bank account holders. A blockchain can be used for storing any material that could be regarded confidential but needs to be reviewed by multiple persons. Blockchain is primarily defined as a distributed and decentralised ledger that holds data in the form of blocks. Every block in the ledger is chained to the previous block, so all blocks are inextricably linked to the ones before them. When a block's capacity to contain information is exhausted, new information is placed in a new block, then chained to the preceding one.

The blockchain's most essential feature is that any member can access the data stored in the form of digital blocks. Once data is saved in blocks, it cannot be changed, making the blockchain a trustworthy and secure database. In addition, the system's transparency and visibility improved considerably because all participants could see any modifications made in the chain. As a result, blockchain is extremely secure for storing sensitive transaction data and classified information that only a certain group should have access to.

Insights on the Blockchain Technology Market

Blockchain technology is a game-changer, and its market value is the ultimate measure of its success. According to Statista, world spending on blockchain solutions is estimated to reach 6.6 billion dollars by the end of 2021; by 2024, the figure will likely reach 19 billion dollars. According to another survey, the banking industry, with a market share of 30% in 2020, would have the largest portion of global blockchain market revenue, followed by process manufacturing, with a share of 11.4 percent. Let's learn more about the industries that benefit the most from blockchain technology.

Top Industries Transformed by Blockchain Technology

The promising benefits of blockchain technology, such as security, transparency, and improved system confidence, have prompted major industries to invest in blockchain solutions. Let's look at some of the key sectors that rely on blockchain technology to complete their most vital operations and get consistent outcomes.

Banking Industry

The banking and finance industry has emerged as the major player in the blockchain business, accounting for 30% of net global blockchain market revenue. However, many of us are already aware of cryptocurrencies such as bitcoin, dogecoin, Ethereum, and others that have fundamentally disrupted the finance business. Cryptocurrency is actually a type of digital currency that uses blockchain technology to operate. It is a distributed and decentralised network that spans several computers and functions as a currency that can be used to provide services and purchase things. Cryptocurrencies are protected by cryptography, considered the most stringent security mechanism. Cryptocurrencies are protected by cryptography, which is regarded as the most strict security mechanism.

Cryptocurrencies based on blockchain technology are resistant to manipulation since it is practically impossible to modify the data stored in blocks since they are safeguarded by cryptographic hashing. Furthermore, the blockchain stores information about every transaction executed, which can be viewed by any participant, providing complete transparency. Today, large corporations such as Starbucks, Microsoft, Virgin Galactic, Shopify, Tesla, and many others accept cryptocurrencies such as Bitcoin as payment. Aside from cryptocurrencies, blockchain technology can record transactions and employee and customer information and increase transparency and security.

Cybersecurity

The increased reliance on the internet and digital world has, without question, improved the quality of human lives, but it has its drawbacks as well. It is now quite simple to obtain anyone's personal information via social media and other online banking apps and payment gateway apps. These systems appear to have created Pandora's box for cyber thieves, fraudsters, and unscrupulous individuals. According to the FBI's Cyber Crime Complaint Center's annual report for 2020, the centre received 791,790 complaints about various internet crimes with alleged damages of roughly $4.2 billion, an increase from 300,000 complaints received in 2019.

Blockchain technology has grown as a potential solution for defending systems and the public from internet crimes in the cybersecurity industry. Blockchain-based storage solutions are being used by platforms such as eCommerce, travel booking, social media, and others to record users' sensitive personal information. As we all know, only parties with the access id for a specific blockchain may access the data stored in it; hence, the likelihood of an outsider obtaining the information is extremely unlikely. Furthermore, even if an infiltrator gains access to the system, it would be nearly impossible for him to get every user's information in certain conditions. As a result, the likelihood of data theft and a threat to the security of millions of users is greatly reduced.

Logistics and Supply Chain Management

Supply chain management has always been a complicated undertaking, and incorrect item handling or even little neglect can result in a loss for the company and its customers. Management becomes more difficult when the supply chain includes valuable metals and perishable goods. In addition, supply chain management is frequently jeopardised due to problems such as product mishandling by the department of logistics, vendor fraud (i.e., the vendor sends fewer quantities than ordered or deploys decaying goods), theft, and so on. As a result, organisations look to effective blockchain solutions to prevent such incidents and limit potential losses.

A blockchain system appears to be the most efficient way to address all supply chain challenges. Blockchains store supply chain data such as item quantity, price, dispatch date, the shelf life of the article, certification, dispatch location, destination, number of intermediate stops, and other relevant information. This blockchain should be made available to workers directly involved in the supply chain to promote clarity and keep everyone on the same page. RFID tags are often placed on every item in the supply chain and store all of the object's details, such as the date of manufacture, expiry date, batch number, etc. These tags feature unique identifiers that can be saved on the blockchain and tracked to improve supply chain traceability and ensure that every item arrives at its destination on time and in good condition. As we all know, data saved in a blockchain cannot be altered; hence, all critical supply chain data is safe and cannot be tampered with, drastically lowering the likelihood of counterfeit and fraud.

Non-Profit Organisations

Most potential donors scrutinise non-profit organisations because of a lack of transparency and control over who receives financial assistance from the organisation. Due to recent scams and money laundering issues, there is a lack of trust in NGOs' administration and functioning techniques, prompting organisations to adopt blockchain technology to establish trust among the public by giving more transparency. NGOs can utilise blockchain solutions to store various data, ranging from donor information and the amount provided to information about the beneficiary who received assistance from the organisation. This blockchain solution is available to all Non-profit members, including donors and beneficiaries. NGOs can check and guarantee that the amount stated by the donor for donation equals the amount received; donors can also check what amount has been awarded and to whom it has been granted. As a result, the operation of an NGO becomes more transparent and hence trustworthy.

To sum up

Along with AI, IoT, AR, and VR, blockchain is a technology that has fundamentally revolutionised the twenty-first century. Founded in 2008 as a layout for Bitcoin, blockchain technology found its usage outside of currency in 2014 as a mechanism to securely store documents and build improved transparency. Almost every major business now uses blockchain technology to construct systems that improve security and transparency. This essay reviewed some of the major industries that have benefited and been altered by blockchain technology. The cases of blockchain technology adoption are not restricted to the ones stated above; as the technology's popularity grows, more and more businesses are moving toward implementing blockchain solutions.