You may or may not have heard about the huge disruptions that blockchain is likely to cause in a number of industries. But, before we get ahead of ourselves, it is important to know that it will be quite difficult to appreciate the extent if we don’t get specific.
But, first things first.
Blockchain is basically a highly decentralized system that is designed to authenticate and manage information. In essence, there’s no singular authority on how data is owned or controlled. Instead, the technology uses smart codes and algorithms as a substitute for third party entities. This makes cryptocurrencies like Bitcoin and Ethereum possible, so if you’ve ever participated in some Bitcoin gambling, or even just exchanged Bitcoin for a different currency, you should know that it wouldn’t be possible without blockchain technology.
The main point of a blockchain is to create a simple but robust network where transactions are authorized and verified automatically.
Moreover, the system is designed in such a way that there are less security concerns on how data is managed. So, the data that is generated through the interactions is logged and safely stored on a secure cryptographic ledger.
The role of the ledger is to protect the data from threats of hacking and manipulation.
Now that you have an idea of what the blockchain technology entails, we hope you can already picture the kind of impact it could have on different industries.
Without further ado, here are a few industries that are likely to take the hit from blockchain disruptions:
Of the parts involved in the blockchain technology, cryptocurrencies seems to be the most popular. For instance, the word out there is that in the coming decade, digital assets may likely take over fiat systems in the finance world.
What’s more? The only requirement to revolutionize the world of finance with this technology will be stable internet. And, in no time, professionals and entrepreneurs are empowered.
As it is today, you’d need intermediaries like brokers and lawyers if you want to buy/sell a property. These intermediaries, among other things, help verify details on the property and input new data in a certain database (like details of the new owner) at the end of your transaction.
With blockchain technology, the correct historical data of every property will be available to anyone looking to buy such a property from the rightful owner (fraudsters won’t be able to provide potential buyers access). This will reduce paperwork, fraud and the number of intermediaries needed and, as a consequence, reduce costs associated with buying a property.
Establishing a person’s credentials or claims is a big issue in the education sector. We’ve had many fake doctors and all what not. Therefore, to prove you have the qualifications you claim, there is currently the need for a central authority that can send things like a copy of your transcript. There’s also the matter of intellectual property and plagiarism.
With blockchain technology, all records of your degrees, certificates, awards and more can be stored securely and accessible to you to show proof of your claims. Furthermore, blockchain technology will help in the management of intellectual property as a non-centralized database will record who owns an intellectual property and note every citation made of such (with appropriate remittance of payment to the copyright owner) all without the need of a central supervising authority.
These are just 3 of the industries that are most likely take the hit of blockchain disruptions. But the list goes on to include intellectual property, supply chain, healthcare, voting, and charity, among a host of others.