Distributed Ledger, popularly known as Blockchain, is the technology behind making the background of any digital advantage immutable, i.e., the origin and journey of the electronic asset are rendered accessible and transparent, through decentralization and cryptographic hashing.
But, the technology penetrated quicker and at a much bigger scale. The famous usage case of Blockchain, the Bitcoin, attracted the much-deserved spotlight to the tech and the rest has been history.
It took a long time, but Blockchain has been unequivocally recognized since the pragmatic solution to some very pressing challenges across industries. Overall investment in the technology is increasing and many incumbents have either acquired a Blockchain development company or have recruited an in-house team.
Five Big sectors who have begun observing the first wave of disturbance because of Blockchain development are:
In reality, FinTech startups were the first to embrace Blockchain technology when the rest sectors considered it only a frill and not potent enough to have practical use cases. FinTech not only imbibed it but additionally enrolled return on investment via Blockchain adoption.
Blockchain supplies a safe method to register immutable records of those millions of transactions which take place within a Financial Services organization. The decentralized and dispersed ledger system relieves the possibility of frauds which have been ailing the Finance pipeline. It is also purported that trades would be cheaper on the broader adoption of their technology.
In the Insurance business, underwriting and claims processing will be the most labour and time-intensive processes. Hence, it is only logical that the early adopters look for Blockchain use cases in these areas of operation. Insurers can associate with a Blockchain growth business to deploy tools which supply them visibility in present and past insurance policies or claims related to property/insured in the question.
In underwriting, Blockchain can decrease costs, improve dynamic pricing, improvise threat assessment, and enhance client onboarding. In any case, underwriting and claims; Blockchain apps can provide seamless, and clear knowledge in binding new policies to insureds.
- Data Management
Data Management is not a business per se, but an underlying function in all businesses. In every workflow, it’s vital that the data is accessible to only authorized users. Blockchain applications can function as permission-based programs and help stakeholders in discovering data tampering. Even if an attacker manages to gain access to a Blockchain network along with the associated data, he/she won’t be able to retrieve the information. It’s because the data blocks are fully encrypted guaranteeing steady flow for the intended users.
Lately the focus region of Blockchain app development has shifted to easing secure communication protocols around the Blockchain network. Such protocols are theoretically immune to man-in-the-middle attacks in which the attacker intercepts the network, nevertheless can’t invent the interlocutor’s individuality or ingest any information under transit.
- Real Estate
Real estate is one traditional sector that would soon be seeing disruption, thanks to Smart Contracts or Cryptocontracts. In a simple definition, Smart Contract is a computer application easing the direct transfer of digital currencies/assets between two parties. Such contracts can allow assets such as real estate to be tokenized and traded like bitcoin or ether and transactions can be done online.
- Product Supply Chain
Blockchain use-case in streamlining the Product Supply Chain requires a special mention as the COVID-19 crisis has put tremendous stress with this business function. Supply of crucial medical equipment and pharmaceuticals continues to be acutely affected due to this health-crisis led disruption. International multi-party contracts worth millions of dollars, which take anywhere months to years to negotiate, are becoming signed in a matter of hours. However, the principal limitation has been the lack of trust involving the trio–need, supply and the financial tool.
Blockchain applications can serve as a trading and funding tool to guarantee distributed ledger-backed obligations to factories which are introduced as and when pre-agreed production milestones are achieved and as goods traverse the supply-chain.