Blockchain Technology: Its Applications and Impact on Various Industries

 

Distributed Ledger systems such as Blockchain gained mainstream recognition after serving as the underlying technology behind cryptocurrencies. Today, multiple industries are embracing the variety of applications that implement Blockchain technology.

 

There is a growing demand for services today that embrace transparency and data security. A distributed ledger technology provides a way to record and transfer data that are not only safe and transparent but also auditable and resistant to change. The key behind this is to have an open and decentralized system, where transactions between two parties can be recorded by individual ledgers in a verifiable and permanent way. The first of such network-to-network chain, Blockchain, was developed by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency Bitcoin.

 

Today, industries across all fronts are utilizing the technology to make them more democratic, decentralized, efficient, and secure. According to a Progressive Markets report, the Blockchain Distributed Ledger Market is set to grow at a CAGR of 55.69% from 2018 to 2025, as a result of being implemented in the following major sectors.

 

 

Impact on Banking, Financial Services, and Insurance (BFSI) Sector

The rise in the prominence of cryptocurrencies is a testament to the robustness of Blockchain technology. It enabled a secure and decentralized way to conduct monetary transactions and has greatly disrupted the BFSI sector off late. Many experts believe that Blockchain will revolutionize banking in the same way Internet revolutionized media. Blockchain technology can be used to provide financial services to billions of people around the world, including those in third world countries who don’t have access to traditional banking. In addition, it also has the capability to make financial transactions more secure and transparent while reducing the total cost by eliminating the need to hire a mediator. Processing claims for insurance is a cumbersome method that’s error-prone and fragmented. Blockchain technology not only enables the system to be risk-free and transparent but also allows insurers to capture the ownership of assets to be insured.

 

 

Impact on Healthcare and Music Industry

In developed and developing countries, the personal health records of citizens are stored by the healthcare industry. These records often undergo numerous transactions – from hospitals to patients, from hospitals to health insurance providers and also in between medical facilities. Gaining access to health records increases the chances of tampering with them, an action that could be detrimental to the healthcare of a patient. Blockchain technology allows such records to be encoded and stored on the distributed ledger with a private key granting access to specific individuals. In the music industry, smart contracts can create a comprehensive and accurate decentralized database of music rights, which can eliminate issues regarding royalty distribution and ownership rights.

 

 

Impact on Cybersecurity and Cloud Storage

Blockchain can aid cybersecurity, especially the security of the Internet of Things (IOT’s). The information pertaining to the millions of inter-connected IOT gadgets are difficult to be stored in a centralized system and are prone to be hacked. Using Blockchain, the information can be distributed in the public ledger system and only accepted and released to trusted parties. Moreover, ownership and transferability of the appliances can be protected using Blockchain encryption. Similarly, the chances of private information being exposed on a cloud server can be minimized when the storage is distributed among multiple ledgers that are a part of a Blockchain system.

In today’s digital world, corporations and individuals are constantly on the cusp of securing their online data, assets, and information. The problem arises when these details have to be transferred to another party – and Blockchain ensures that the data is not only safe and secure during the process, but also the transaction in itself is transparent. Blockchain has already started to transform how our society functions and will disrupt the archaic processes of several industries in the future.

 

 

About the Author

Rajarshi Mukherjee is a Content Writer at Progressive Markets. Holding a Master’s degree in Hydrology and Water Resources, he one day wishes to educate the public regarding the imminent dangers of Anthropogenic Global Warming. For now, he finds solace in writing about breakthroughs in science and technology. He also possesses an avid interest in world politics and football.

 

 

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