Blockchain technology is one of the innovations that changed the world as we know it. Although it became widely known for the use of cryptocurrencies, it came to life long ago when Merkle trees put the base of digital signatures. Digital cash was no longer a SF notion, as digital documents entered the mainstream, PoW algorithms were created, and finally, Bitcoin was launched in the market in 2009. Since that moment investors have started to research on how to purchase Bitcoin.
Since then, blockchain has evolved considerably, especially with the development of Ethereum, the cryptocurrency and network approaching a diverse outlook on digital assets. NFTs, dApps, DAOs and much more have initially been built on the Ethereum blockchain.
Being supported by unparalleled innovation, blockchain technology has improved and now has the potential to transform traditional systems forever. Here’s what industries would benefit from it the most.
Accessible and Fast Capital Markets
Capital markets are essential for a healthy economy, but they’re often threatened by market manipulation, financial crises and regulatory issues. However, blockchain would have the capacity to solve some of these challenges, aiding issuers, fund managers, investors and regulators.
First, issuers would benefit from blockchain introduction since it can enable fast and affordable access to capital. Considering how rapid security issuance can become, issuers are advantaged by flexibility and customization possibilities.
On the other hand, fund managers get transparent settlements that minimize systemic market risks. That’s because with blockchain, faster processing is possible, and costs will be reduced through superior effectiveness.
Investors might also have access to new instruments through blockchain as it mitigates liquidity and less capital costs. Finally, regulators can leverage blockchain for asset tracking to improve their risk prediction.
In other words, blockchain is great for capital markets because it enhances:
- Issuance;
- Sales and trading;
- Collateral management;
- Exchanges;
- Stablecoins;
Safer Digital Identity
The problem of digital identity deepened in the past years with the emergence of GDPR and consumer online safety. Verifying someone’s identity went through various issues, from keeping up with changing regulations to preventing and managing fraud. Building consumer trust is, by far, the biggest problem since managing concerns in a world of uncertainties is almost impossible.
However, strengthening digital identity and security is possible with blockchain technology. Companies need blockchain to eliminate inaccessibility, data insecurity and fraudulent identities. First, many people around the globe have no proof of identity due to poor paperwork processes and lack of access to better technologies. That’s why introducing the concept of digital identity puts the base of a decentralized identifier. Hence, blockchain helps data monetization and portability.
A decentralized identity, as peculiar as it sounds, is the best approach to protecting people’s identifiable information. By building a DPKI (decentralized public critical infrastructure), governments offer a trusted ecosystem where identity holders can safely store their encryption keys.
Sustainable Energy
The problem of sustainable energy has been discussed in the past decade as a consequence of climate change and its visible effects on nature and people’s health conditions. Renewable energy is the best solution to these problems such as solar, wind, and geothermal energy. However, the high installation cost and lack of infrastructure hinder its development.
Blockchain can transform the energy sector through smart contract technology and interoperability. For instance, distributed ledgers can be used by providers and suppliers to track the chain of custody for raw materials, lowering process inefficiencies. At the same time, stakeholders benefit from superior transparency.
In order to achieve a more sustainable energy cycle, blockchain has the potential to impact the following sectors:
- Wholesale electricity distribution. Along with IoT services, blockchain can be used to connect end-users with the grid to reduce consumer bills;
- Peer-to-peer energy trading. Leveraging blockchain in P2P businesses provides a more decentralized manner, connecting communities without borders;
- Electricity data management. Immutable ledgers ensure efficiency and secure updates on energy usage data while reducing the chances of monetary exploitation;
Enhanced Healthcare Systems
Labor shortages and worldwide diseases considerably challenge the healthcare system. However, it’s also hit by cybersecurity issues, increasing healthcare needs, and a lack of equity. In many areas of the world, healthcare is still recorded and based on paperwork, which is an inefficient way of assigning proper statistics and addressing actual problems.
Luckily, blockchain can change that by providing healthcare providers with a reliable and safe database. It can positively impact sectors such as EHRs, drug traceability and patient consent management with a simple network that connects all participants. For instance, blockchain can secure EHRs systems (electronic health records) through structured data sharing methods in decentralized databases that protect patient’s privacy.
On the other hand, patient consent management can be improved by offering them control over the visibility of their health condition by stakeholders and other healthcare providers. They can choose to share specific information about themselves based on their level of trust in certain companies.
Drug traceability is a constant challenge in the pharmaceutical industry. Still, it can now be solved by using blockchain to register products and track them during the supply chain process to ensure they get from the source to the end consumer safely.
Finally, blockchain should be used to provide incentivization through micropayments to encourage patients to continue their treatments. For example, they could benefit from Bitcoin or Ethereum coins whenever they reach a certain goal in their treatment plan or are willing to share sensitive data for clinical research; in these cases, they would not only be the direct beneficiary, but they could also help others in need and boost the industry’s research sector.
What Do You Think about Blockchain Technology?
Blockchain technology is one of the most revolutionary business tools discovered in recent years because it can ensure a safe, decentralized and transparent ecosystem without expensive tools and software systems. Indeed, it might take a while for companies to get used to these new technologies and employ the right people to manage them. However, it won’t take that long until blockchain becomes significantly accessible to the world and can be introduced by small businesses and even startups as basic databases.
