Blockchain technology is the current buzzword of the financial world. The promise of eliminating third parties and finding usable applications in business has sparked enthusiasm among blockchain fans, firms and entrepreneurs who have identified its potential to change a whole series of sectors and industries.
Here are a few things that a decentralized structure like blockchain could change.
1. The traditional financial system
The blockchain proposes a structure that eliminates middlemen and increases transparency in transactions. While banks play a central role in cross-border transactions as part of a complex infrastructure that has not undergone radical transformation, blockchain technology will allow for the creation of direct communication between institutions without the interference of banks. Additionally, blockchain technology will provide transparency and accessibility to records for regulators.
2. Security of any type of transaction
A shared ledger irreversibly records all transactions. Thus, information of a sale cannot be altered. Blockchain is tamper-proof and immutable due to decentralization, cryptography and consensus.
3. Health records storage and portability
It can be a headache when signing up for a new health policy as you might have to submit records from previous providers and medical care institutions. Blockchain would make it much simpler by registering all details with no possibility to tamper with private data.
4. Counterfeit and luxury goods
Not only designer fashion pieces fall under this category, but also precious stones and antiques. As the blockchain is a tamper-proof system, the origin and history will be included on a shared ledger. Again, having a recorded history of transactions, items will be traced and catalogues properly, establishing a clear record of all information. This will help to guarantee and evaluate luxury goods’ status and prices.
5. Transparency in the global food supply chain
Given the transparency a blockchain platform offers in recording transactions, we will all be able to verify whether those “fair trade” bananas are what the label says. Additionally, products will have a tracking record that could validate the “freshness” many marketers claim on food packaging.
6. Fake news
Fake news might be Trump’s favorite word, but with social media spreading manufactured lies fast, it is no longer easy to disentangle lies from truth. Many of us did fall prey to social media ads, blog posts and news which were planting lies and seeking to mislead. On a blockchain though, such news would have to be approved by the network, and this step of verification would make it difficult to publish and share.
7. Content rights management
The power of the blockchain will help authors protect their copyright and will offer guarantee to
customers about the uniqueness of the purchased works.
Existing business models require time-consuming back-end processes and lead to more complications due to the use of multiple systems. Eventually, people will become frustrated with the demand of dealing with daily operations. A blockchain ecosystem can automate your operations with additional help from AI and robotics, for example.
9. Climate change
Imagine you could actually engage in projects that could give you the tools to do something about your carbon footprint and help support the attempts for a greener planet. Let’s say you took a flight this month and the equivalent of the CO2 emissions could be bought in the form of coins that support a green project.
10. Lower transaction fees and increase of privacy
We live in a world that is increasingly digitalized. We transact online for almost everything, and the convenience of it is something billions enjoy. However, traditional payment systems often are criticized for their limitations and lack of transparency. A blockchain technology-based platform could easily offer your favorite subscriptions in one place, and would guarantee lower fees, high-level security and full transparency of transactions. With a shared ledger system, you would eliminate the double-spending problem or miscommunication about recurring payments.
In today’s world, it is believed that blockchain products perform better, they cost less and last longer. How we look at data, privacy, transactions, and ownership promises to serve as the foundation of a new wave of products and services. One thing is sure – we are standing at the threshold of a disruptive transformation in the ways businesses are built. The next generation of services will be much more flexible, rewarding, trustworthy, and profitable for users and entrepreneurs alike.