Blockchain Benefits Have Given a Shot In The Arm To Various Industries. How?

While the future is unpredictable, none of us visualized that blockchain technology will exceed far beyond its beginnings in banking and cryptocurrency.

A big thanks to all the buzz related to blockchain record-breaking exploits that are more than big enough to sustain its relevance for the upcoming generations.

Today, Blockchain technology benefits many businesses globally, which was not foreseen during its conception. However, companies need to keep their data secure so that it is not vulnerable to people. Blockchain’s approach to security makes it a valuable technology for companies looking to share data easily.

Due to its growing popularity, there is no doubt blockchain development technology can provide potential advantages to the business world. Transparency market research says the global blockchain development market is projected to be worth $20 billion by the end of 2024.

As per Gartner stats, Blockchain development has a lot of potential to reduce costs, especially for the financial domain due to which blockchain’s business value-add is going to grow to $176 billion by 2025.

Growing Global Opportunity

If you are considering adopting blockchain development, first understand it fully and find out how it can help your company. For this, you need to have a clear strategy and solid reasons to adopt new technology, no matter how much bustle it is generating these days.

In this blog, we will discuss how blockchain benefits all the other industries.

Check out the primary reasons below:

1)  Auditable transactions

In blockchain development, each transaction is sequentially and indefinitely recorded which provides an indelible audit trail for the life of an asset. This is very important if the source data is essential to verify the authenticity of the assets. 

For instance, in the food supply chain, if there is a problem with the product, it is essential to track where it came from and when. It can help quickly remove all of the affected products from shelves. This would save consumers from getting sick, and also helps to improve food safety in general.

So, blockchain technology benefits the food industry by providing an immutable audit trail for each product as it moves through the supply chain from farm to table.

2) Secure transactions 

In blockchain development, as each transaction is verified within the network using complex cryptography, the authenticity of the information can be guaranteed. This can securely record all digital transactions in a sequential chain by using cryptographic digital keys that are verified by the network as an authentication key.

Here, the block contains digital information, and the chain is the public database.  Every block in the chain includes a timestamp that is linked to the previous block. The chains keep on growing with the addition of new sets of recordings called “blocks” and this forms a ledger. 

All the blocks are encrypted in such a way that makes it impossible to manipulate transactions and other information. In this context, Cryptography comes into play, where the owner owns a unique cryptographic key that can add a new record to the particular chain.

At the same time, no one else can manipulate the transactions or the data inside the record. Here is the role of blockchain development companies in play as to how well they incorporate these features in the app or software.

Bitcoin’s ledger was the first blockchain, but after this, the technology begins to spread across the global economy. The insured information is one of the fundamental keys to unlocking the benefits of the Internet of Things, which is a closed-cycle autonomous cybernetic process that links assets with actions. 

3) Decentralized 

Decentralized

With the help of Blockchain development, you can divide everything into small pieces and distribute them throughout the computer network instead of uploading data to a server in the cloud or storing them in a single location. It is a digital ledger that lacks a central control point. Each node or computer has a complete copy of the ledger, so one or two nodes that go down will not cause any data loss.

Moreover, there is no intermediary required to process a transaction. So you can easily rely on a decentralized blockchain. It is a peer-to-peer network that enables trust, transparency, and security. Thus, it becomes more difficult for cybercriminals to commit fraud.

4) Efficient data

Efficient Data: Blockchain Benefits

The settlement of each transaction can be quick as the transactions are completed directly between the relevant parties without any intermediaries and with digitized information. It’s one of the best benefits of blockchain technology. So, the data is shared quickly and efficiently between all parties involved in a transaction, which can help to reduce costs and speed up processes.

Besides, blockchain also provides the ability to operate ‘smart contracts’ that automatically activate commercial actions based on compliance with the criteria established in the contract. It can drastically simplify processes and also eliminate the time and cost of every transaction.

5) Impossible to hack

Blockchain Benefits

Hackers can quickly enter traditional networks and can find all the data in a single repository and filter or corrupt it, but blockchain technology makes it unbearably difficult. The data is encrypted, decentralized, and controlled by the entire network. Once a record is in the general ledger, it is almost impossible to modify or eliminate it without being noticed and invalidating the signature. 

In blockchain development, each legitimate transaction is confirmed by multiple nodes in the network. The best benefit of Blockchain technology is that it makes data transparent and incorruptible. So, it becomes very difficult for hackers to hack the system.

6) Commercial transparency

With blockchain development, you can have commercial transparency for your business. This is because the lack of commercial transparency can sometimes lead to delays in trade and a collapse in business relationships.

By providing each detail of every transaction against the commercial construct, you can enlist more confidence in the process and thus provide a more stable business relationship based on transparency rather than negotiation.


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Which Industries Can Make Use of Blockchain Benefits?

In this aspect, the financial services landscape is the first one to win the race. The benefits of blockchain technology have been long recognized by the financial sector, which is in a strong position to adopt and implement the new technology.

The benefits of blockchain technology are not just restricted to the financial sector. Many other industries can make use of blockchain technology to streamline their processes and become more efficient.  So let’s take a look at all these sectors which can be disrupted by blockchain technology.

See how blockchain is bringing transformation across different sectors globally:

Blockchain Benefits in Banking Sector

Blockchain technology has disrupted the banking industry by its prominence. Banking experts and investors have praised its niche bitcoin since its inception. But what about the traditional banking system, will they accept this transformation or not?

It renders financial services like payments and securitization without involving banks as the intermediary. You can use its tools like “Smart Contracts” to automate manual processes like compliance and claims processing.

Blockchain technology offers a high-security, low-cost way of sending payments. It cuts down on the need for verification from third parties and beat processing times for traditional bank transfers.

Swiss bank UBS and UK-based Barclays are experimenting with blockchain so that it can accelerate back-office functions and settlement. At the same time, other banking industries have witnessed a $20 billion cut in middleman costs. 

Blockchain Benefits in the Education Industry 

We all have academic credentials at the primary, secondary, and university levels. However, at specific points in time, educational institutions, and organizations where we apply for jobs verify it. Just think how difficult it is for them to cross-check every profile of students.

Hence, implementing a Blockchain solution in the education system eliminates manual processes like paper documentation and case-by-case checking. It streamlines the verification procedure and reduces the fraudulent claims of un-earned educational credits.

A software startup, learning Machine collaborated with MIT lab and launched Blockcerts toolset that provides an open infrastructure for academic credentials on the blockchain. It also simplifies administrative tasks and decentralizes learning materials to make them more accessible.

Blockchain Benefits in Healthcare Sector

The influence of blockchain benefits has knocked almost every industry so far, and our healthcare sector is also not way behind. The only complex thing that the healthcare sector is facing is its ability to share data securely across platforms. 

By deploying blockchain technology in the healthcare value chain, hospitals and payers can share access to their networks without worrying about data security and integrity. This also results in a positive outcome for the doctors as they can effectively diagnose and treat their patients cost-effectively.

A startup named Hu-manity collaborated with IBM on an electronic ledger to provide the patients with fair trade data practices. It will allow the patient to have more control over the data they want to share or not.


blockchain benefits in healthcare


Blockchain Benefits in Video Streaming

Video Content on any platform is predicted to acquire 82 percent of internet traffic worldwide by the year 2021. With the help of Blockchain technology, you can reduce the cost of video traffic dramatically. Decentralizing video encoding, storage, and content distribution are some of the methods through which we can decrease the video traffic in the video distribution system.

VideoCoin decentralized network is providing cloud video infrastructure including stages, viz encoding, storage, and distribution in the form of an algorithmic market. This network is running in a new blockchain where the clients have to spend Videocoins to rent the services.

Stream and Livepeer are two similar blockchain-based platforms that decentralized a network that allows content creators to share their live video by requesting the broadcaster to accept stream tokens by performing video transcoding.

Blockchain Benefits in Supply Chain Management

It is quite strenuous for a logistics company to look at all the processes between procurement and shipping. Also, increasing the human workforce is not an effective way to have a positive ROI; instead, it will drain the profitability of the company. 

Deploying blockchain in the supply chain industry enables more secure and transparent monitoring of transactions. As the product moves in a series of transaction phases,  the transactions need to be documented in a permanent decentralized record which further reduces time delays, added costs, and human errors.

Many blockchain startups are plunging into the logistics sector and offering supply chain and logistics solutions with the innovation of technology in it. Hiro, for one, is offering an alternative platform for diving into the global supply chain.

Also, Walmart joined hands with IBM’s food trust network as they own a blockchain distributed ledger. Here, the retailers ask the suppliers to add their product data to the blockchain ledger. With this, it becomes easier to trace the origins of the food.

Blockchain Benefits in Retail

Aside from all the sectors, blockchain has marked its steps in the Retail industry as well. Creating a sense of trust in the mind of customers is the only essential element of the retail and eCommerce sector these days.

However, Blockchain is one such technology that will decentralize the trust of your customers, giving your retail sector a chance to attach more sellers on various marketplaces and platforms.

Let’s see how startups in the retail sector have been benefiting from its implementation?

OpenBazaar, a startup has developed a decentralized blockchain utility that will connect sellers and buyers without getting in touch with the intermediary and other associated charges. It offers its merchants no fees and no restriction on the items being sold through its open-source, and peer-to-peer network.

Buyers buy items using their cryptocurrencies, and the sellers are paid back in a variety of cryptocurrencies. Here, all the associated data is distributed across the global network of blockchain instead of storing it in the central database.

Louis Vuitton, a French luxury conglomerate, built a platform in collaboration with Microsoft and ConsenSys, a blockchain startup so that it can authenticate luxury goods through blockchain. 

It reduces cybersecurity risk by eradicating the human intermediaries, which in turn lessens the threat of hacking, corruption, and human error.

One high-profile project here is Enigma, which claims MIT and Flybridge Capital as supporters. Enigma is the developer of Catalyst, an off-chain decentralized exchange and investment platform that works without the need of a third party to act as a clearinghouse.


Read Also: Blockchain Trends 2022: In-Depth Industry & Ecosystem Analysis


Final Words

Now you must be aware of the numerous blockchain benefits. Not only does blockchain make the transaction secure and transparent, but it also has a distributed electronic ledger that connects multiple parties within a network of integrity and trust.

And, aside from all this, it has brought a significant transformation across several industries so far with its wide-ranging potential, which is again no surprise.

In case you are planning to give a boost to your online business, then you should hire blockchain developers in India. You can contact us at PixelCrayons where we have a proficient team of blockchain developers who can help you with your development needs.

FAQs

Q-1. What is Blockchain?

Ans. Blockchain is a digitalized, decentralized, public ledger of all cryptocurrency transactions. It constantly grows as “completed” blocks are added with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Q-2. What are the characteristics of Blockchain?

Ans. The characteristics of blockchain are:

1) It is a distributed database that is open to anyone.

2) It doesn’t have a central authority controlling it.

3) It is transparent, as all transactions are visible to everyone on the network.

4) It is efficient, as there is no need for intermediaries to verify or approve transactions.

Q-3. How can Blockchain be used in the retail industry?

Ans. Blockchain can be used in the retail industry in many ways, such as:

1) To create a decentralized marketplace where buyers and sellers can connect directly without the need for a third party.

2) To track the provenance of products, from manufacture to sale, to ensure that they are not counterfeit.

3) To create loyalty programs that reward customers for their purchases and allow them to redeem their points for discounts.

4) To streamline the supply chain by tracking products and components moving from manufacturer to retailer.

5) To create a “digital passport” for each product that contains all the information about that product.

Q-4. How can Blockchain be used in the healthcare industry?

Ans. Blockchain can be used in the healthcare industry in many ways, such as:

1) To create a decentralized database of medical records that is secure, transparent, and accessible to all authorized parties.

2) To track the provenance of pharmaceutical drugs, from manufacture to sale, to ensure that they are not counterfeit.

3) To streamline the clinical trial process by tracking patients, treatments, and outcomes.

4) To create a “digital twin” of each patient that contains all the information about that patient, from their medical history to their current condition.

Q-5. What are the benefits of Blockchain?

Ans. The benefits of blockchain are:

1) It is secure, as each block is connected to the one before and after it, making it very difficult to tamper with data.

2) It is transparent, as all transactions are visible to everyone on the network.

3) It is efficient, as there is no need for intermediaries to verify or approve transactions.

4) It is immutable, meaning that once something has been recorded on the blockchain, it cannot be changed.

5) It can potentially disrupt several industries by eliminating the need for intermediaries and reducing costs.

Q-6. What are the challenges of Blockchain?

Ans. The challenges of blockchain are:

1) It is still a new technology, and there is a lack of understanding.

2) It is energy-intensive, as it requires a lot of computing power to verify transactions.

3) It is vulnerable to hacks, as evidenced by the recent attack on the Ethereum network.

Q-7. Why is Blockchain considered to be disruptive?

Ans. Blockchain is considered to be disruptive because it has the potential to eliminate the need for intermediaries and reduce costs. It also has the potential to displace existing business models that are based on trusts, such as banks and governments.

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3 thoughts on “Blockchain Benefits Have Given a Shot In The Arm To Various Industries. How? How blockchain is making data more secure & helping various industries? Learn about the amazing blockchain benefits in this blog.

  1. Great Blog! It helped me understand certain important aspects of Blockchain Development. Hacking this technology may never be really possible.

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