How Does the Blockchain Technology Impact Different Industries?

CIOReviewIndia Team | Friday, 12 June 2020, 05:09 IST

blockchain benefits

Since more than 80% of the banking experts believe the blockchain technology will cause many changes in the next two decades, this means profound changes will occur on how people will manage online transactions. However, many new solutions based on this technology had shown its applications go beyond the world of finance. Healthcare, commerce, security, travel, and many other economic sectors could benefit from some of the benefits coming with the blockchain.

# Transparency

Cryptography is used to approve transactions in the blocks attached to the distributed ledger (a.k.a. the blockchain). All transactions processed since the blockchain had been launched are visible and transparent. Given the increased transparency, this technology could be used in various sectors:

  • Voting systems – elections could be traceable and equitable since records will be very difficult to tamper or remove.
  • Accounting – fraud will be difficult when all the past changes in the blockchain are fixed. Systems requiring audits will benefit from the increased trust.
  • Finances – whether it is for the traditional currency system or Bitcoin trading, the blockchain had proven to be a trusted technology, having the potential to change how money can be used.
  • ID storage – self-governing data is a concept already gaining traction, especially in Europe.

The three main drivers of economic activity are productivity, credit, and trust. Blockchain transparency can have a leading role in enhancing trust in many different industries, reducing the need for extra regulation or bureaucracy.

# Decentralization

All transactions recorded on the blockchain are being recorded in multiple locations to prevent data loss. This brings decentralization into the discussion as the second most important quality of the blockchain. As a result, there won’t be any need to have a central authority so heavily involved in the business sector. At present, the government intervention and the monopolization by big corporations led the many inequalities all around the world.

In a decentralized world, there is less censorship and decentralized networks are more likely to open development platforms. At the same time, a meritocratic system could be easily developed. There’s still low interest in decentralizing all industries because they are slow to develop and interact with, as well as more expensive, but as the time goes by, the blockchain seems poised to further enhance the trend towards decentralization.

# Deep integration of technology

As long as the blockchain will bring transparency and decentralization, the people’s reluctance towards a deeper integration of technology will gradually drop. Right now, technology is being used for the benefit of the few and more like a control tool, rather than one that should create opportunities for the broad public.

More technology integration will benefit all industries, increasing productivity, reducing human error, as well as reducing the effort people must put at their workplace. It is not necessary to replace people with machines when we can teach them to integrate technology into their daily activities. Will blockchain lead to such things happening? Leadership, both in government and business will play a leading role since it is a tool able to be integrated in many different forms.

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