Blockchain has come a long way and its widely adopted in almost all sectors. But what about mass adoption? Is blockchain ready for this? This article explains why the demand for blockchain is soaring and how industries are leveraging blockchain.
Learning Of Blog
- Introduction to Blockchain- A New Era
- Why Demand for Blockchain is Soring
- Various Industries Leveraging Blockchain- A Step Forward
- Conclusion- Is Blockchain Ready for Mass Adoption?
Introduction to Blockchain
Blockchain is a chain of data “blocks” stored on thousands of devices or servers distributed over a wide geographical area. It is a distributed ledger technology that maintains a copy of all the financial transactions. Today, blockchain is the most hyped technology that has grown along with the popularity of cryptocurrencies. Many organizations are leveraging blockchain to simplify their internal tasks. The technology allows companies in various industries, be it healthcare, finance, supplychain, and many others, to cut costs and increase revenues while providing customer service and fulfilling customer’s expectations.
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Why Demand for Blockchain is Soring
As government agencies, tech companies, several startups, are seeing the potential in blockchain, the demand for blockchain is soring at an alarming rate. But what are the reasons behind this? The answer is simple and straightforward, ‘blockchain properties’ are the core reason that can solve the issues of scalability, transparency, high transactional costs, and security.
Let’s explore the benefits of using blockchain technology.
In today’s financial services industry, the emergence of online banking has made most transactions a relatively straightforward process, despite the straightforwardness of such transactions, there are still many intermediaries involved, which results in higher transactional costs, which the payee and payer have to bear. Blockchain offers a solution to this problem, where you have to trust the cryptographic algorithms instead of trusting any middleman.
Transparency is a big issue in the current industry, and centralization is the core reason behind that. With the help of blockchain, the organizations are utilizing a complete decentralized network where there is no need for a centralized authority, improving the transparency of the system.
The technology also offers high-level security, which is due to the cryptographic algorithms which are being run behind the blockchain. So one only needs to trust cryptographic algorithms, such as the ECC algorithm, SHA algorithm, or RIPEMD-160 algorithm that are used by major companies.
Moreover, the technology offers faster dealing and cost savings. It eradicates the paper-heavy processes, which are time-consuming, prone to human error, and often require third-party mediation.
Various Industries Leveraging Blockchain- A Step Forward
Since industries differ in several ways, we should not expect any two industries/companies to leverage blockchain identically. Let’s start with blockchain in financial services.
Financial firms have explored blockchain solutions as ways to streamline and facilitate performance in areas such as digital payments, know-your-customer(KYC), data validation and verification, tokenized assets, asset transfer, trade finance, and beyond.
TMT stands for Technology, Media, and Telecommunication, that are pursuing blockchain solutions for efficient working. When it comes to technology, various cloud providers are utilizing blockchain development tools service to offer complete traceability to the cloud. Companies in Telecom can use technology as a way to reduce roaming and other fraud-related issues. Media companies can use blockchain to enforce digital rights and payments to content creators and investors.
Blockchain in Supply chain
Various top companies (such as IBM) are leveraging blockchain technology in the field of manufacturing for tracking and tracing the supply chain. Blockchain capabilities are helping industries and business relationships through trust, transparency, flexibility, and newfound collaboration.
Even Walmart’s latest decision to join the blockchain consortium Hyperledger shows the potential of the technology. Sanjay Radhakrishnan, the vice president of Walmart Global Tech, stated that “We’ve seen strong results through our various deployments of blockchain, and believe staying involved in open source communities will further transform the future of our business.”
Healthcare today suffers from fragmented data, delayed communications, and disparate workflow tools induced by the lack of interoperability. Blockchain provides the opportunity to enable access to complete, and tamper-aware medical records that are stored in fragmented systems in a secured fashion. This is the reason why healthcare departments are switching to distributed ledger technology, i.e., blockchain.
Conclusion-Is Blockchain Ready for Mass Adoption?
As we have seen, more and more industries are switching to blockchain for varying purposes, we can say that the blockchain market is in for serious qualitative changes in 2020. But there needs to be improvements in terms of scalability, interoperability, legality, government rules, and much more for mass adoption.