How Blockchain is Revolutionizing Various Industries?
The future of blockchain is around the corner, and banking isn’t the only industry affected. Multiple industries, particularly finance, are adapting the blockchain, the underlying technology behind cryptocurrencies. Blockchain technology, a virtual ledger capable of recording and validating a large volume of digital transactions, which served as the foundation for digital currencies like Bitcoin, is now spreading its wings across a wave of industries.
Currently, one of the most well-liked technological trends worldwide is blockchain. The word blockchain is now synonymous with every 3rd person. This is also what nations are discussing. The technology has some unique attributes like immutability and decentralization, which have made it popular worldwide, and many businesses and domains have already started implementing it.
According to the report by CB Insights, funding to blockchain startups surged by 713% to reach $25.2B.
Now, with the emergence of the Metaverse, blockchain technology has become more significant that cryptocurrency and NFTs will enable transactions, purchases, and value storage in virtual reality.
According to Statista, “the spending on blockchain will reach about $19B by 2024.”
But how does this technology benefit various sectors of the economy? Does it have the potential to change the world? What does the future hold for it? Let’s find out!
The Success of Blockchain
So let’s talk about the success of blockchain. What has this technology achieved, and what impact has it created so far?
There are at least 3 (but not limited to) multibillion-dollar sectors that have shown 10x improvement over the preceding technologies. The 3 industries are as follows:
– Bitcoin over Gold
It is believed that Bitcoin is known as the better gold.
Bitcoin is definitely lighter than gold. The large amount of Bitcoins can be transported cross-borders within a blink of an eye.
It is more liquid and divisible than a gold bar.
– Cryptocurrency over Wire Transfers
It comes as no surprise that international wire transfer between 2 banks takes days.
On the other hand, if two parties or contractors are willing to transact through cryptocurrency, it’s quite easy. Thanks to Ethereum!
An Ethereum transaction appears in seconds on-chain and settles in minutes. The technology has made Ethereum a vast network where projects are now building, and transactions are happening 24*7.
– Ethereum over Crowdfunding
Today, we have entered a completely new age of crowdfunding.
7 years ago, Ethereum raised about $15M, which was then recognized as one of the largest crowdfunders of all time. However, the advent of ICOs and IDOs has completely demolished all previous records.
Thanks to blockchain, now tens of millions of dollars from all around the world can be sent and received within 30 seconds.
4 Industries Blockchain is Disrupting (And Has The Potential to Disrupt)
The 3 aforementioned areas clearly demonstrate that the world has already seen the 10x blockchain-driven innovations. The remaining industries are subject to execution and distribution. The fundamental, zero-to-one innovation in these 3 areas is no longer in question. However, nobody has come up with a use case for blockchain 10 years from now.
However, blockchain enthusiasts still have faith in the technology and believe that the blockchain is likely to disrupt many industries in the coming 5 to 10 years.
Here are some of the industries it’s already begun to disrupt.
1. Banking and Payments
Blockchain is doing to banking what the internet did to the media.
Blockchain allows anyone to transfer their money faster, more efficiently, and securely without requiring any middleman.
Not only this, according to Reuters, a lot of banks have begun to adopt the technology.
Using advanced cryptography, all data is verified and encrypted in blockchain, making it resistant to unauthorized hacks and changes.
3. Internet of Things
Kamil Przeorski, an expert in Bitcoin and Ethereum capabilities, says:
“Blockchain has the potential to address the critical security concerns since it decentralizes all of the information and data.”
4. Rentals and Ride-Sharing
Although Uber and Airbnb appear to have decentralized networks, the platform owners actually have complete control over the system and charge a fee for their services.
Blockchain can develop decentralized peer-to-peer ride-sharing applications and enable auto-payment for parking, tolls, and fuel for vehicle owners.
Numerous articles have been written on how the blockchain will ultimately change everything. Although some will take years or decades to fully play out and likely go through numerous iterations before succeeding, I genuinely think we will see the majority of the envisioned use cases come to pass. However, that long-term optimism is based on an empirical assessment of the specific achievements that the blockchain has so far recorded.
The only reason I expect the blockchain to achieve so much more is that it has already done so much for us.