The technology that has brought a ray of hope in small business (struggling to reduce their costs) to large business (struggling to increase the speed of their business operations) is Blockchain technology!
In this blog, we will discuss some applications of this amazing technology and then we will talk about its future.
The term 'Blockchain' is being widely used in various articles and blogs on the internet. However, most of these write-ups do not clearly explain what this blockchain actually is.
There is a misconception about ‘Blockchain’ and ‘Bitcoin’. People think that Blockchain and Bitcoin are one and the same thing. But, unfortunately, it is not the case.
Here, we would like to clarify that both of these terms are quite different.
The blockchain is a technology on which cryptocurrencies like Bitcoin are based. This powerful technology has the ability to provide the utmost security, high speed and efficiency to any business network.
Bitcoin is one use case of blockchain technology. Here, we are going to share some use cases that can help you to have an idea about what blockchain can do for you?
Cross Border Transactions
Banks are always looking for an efficient way to manage nostro or vostro accounts. These accounts are used to facilitate trade and foreign exchange transactions through reconciliation.
Blockchain, if used, can make this process easier and quicker as the reconciliation of accounts will become automated.
In any business, the task of obtaining approvals from various legal organizations such as customs, trucking or rail transportation entity, port authorities, etc. is time-consuming and hectic.
Here, blockchain can play an important role. All the legal entities can use blockchain for signing all the approvals. In a blockchain network, all the participants have equal access to all the information about approval status and transactions.
Electronic Medical Records
Nowadays, electronic medical records are kept in data centers. Moreover, access to these records is limited to the hospital and caretakers.
Since this information is centralized, therefore it is quite expensive and prone to security hacks.
Blockchain can be quite helpful here.
In the blockchain network, the medical histories of each patient are shared among doctors, hospitals, and regulators.
If this shared ledger is updated, then the change is transferred to all the people having authorized access in this blockchain network.
So, blockchain provides a tamper-resistant way of storing electronic medical records.
Exchange of capital, goods, and services across the international border is known as global trade. Cost of trade documentation comes around one-fifth of physical transportation cost.
The reason is that different supply chain participants such as manufacturers, insurers, banks, customs, and border agents depend on different systems for processing transactions.
Here, blockchain distributed ledger technology can be quite helpful to speed up goods on their journey from manufacturer to market. This is because blockchain provides a single view of reality.
Healthcare Payment Pre-Authorization
In the case of healthcare claims, people do not submit all the required documents. So, as a result, payers need to request for additional information and this process adds costs and delays.
Blockchain technology makes this process easier by automating the collection as well as sharing of information.
Blockchain permits a permanent and permitted record that has all the information about food origin, processing data and shipping details.
This usage of blockchain technology results in a secure sharing of permitted data through an efficient food supply chain solution.
If in case anybody wants to alter the food item, blockchain identifies it and notifies the producer before the item reaches a retailer. A pictorial representation is shown here to make it more clear.
These are some of the applications of the blockchain. Blockchain technology is revolutionizing the world. It has the ability to increase efficiency and security in almost every industry.
According to PWC global blockchain survey 2018, Gartner has found that 82% of reported blockchain use cases were in financial services in 2017. But this stats dropped down from 2018 to 46%.
More on Blockchain
Here is a video that shows various industries whose efficiency can be improved through blockchain technology.
Future Predictions for Blockchain Technology
If we talk about the year 2017, then cryptocurrency took the entire world through the storm in that specific year. Moreover, Bitcoin price went up to $20,000.
There are certain predictions that experts have made for the future of blockchain.
- By the year 2030, almost all the governments will adopt some form of virtual currency
- By the year 2030, A major part of world trade will be performed with the help of blockchain technology
- By the year 2030, considerable improvements in the world’s standard of living will be attributable to the development of blockchain technology
- Till 2030, a blockchain based cross border self-sovereign identity standard will come out for individuals as well as physical and virtual assets.
Moreover, here are some additional predictions by tech experts about the future of blockchain technology. Let’s look at them.
- Enhanced transparency across industries
- Blockchain-based security measures
- Increase in distributed data models
- Distributed Ledger technology based government systems
- Credible Crypto Backing
- Self Negotiation and Trade
Effects of Blockchain on Business
Since blockchain technology has the amazing capabilities to enhance speed, data security and to minimize the money fraud, more and more industries are adopting it in their business operations.
Due to this increase in demand for blockchain-based applications, custom blockchain development and outsourcing companies in India are gaining popularity with the increase in time.
Blockchain technology has revolutionized industries across the world. This disruptive technology has the capability of increasing the efficiency of the workflow of any industry.
It is a permanent ledger that is shared across all the participants of a blockchain network. Any alteration in the ledger is transmitted to all the participants in chronological order.
There are absolutely no chances of tampering.
Hence, we concluded that industries from the various sector such as food, healthcare, trade finance, and global trade are getting benefited by this powerful hyper ledger technology.
With an increase in time, this innovative technology is going to broaden in the future.