Blockchain Technology in Different Sectors

IOTRIC
3 min readMay 5, 2022

How blockchain is transforming different sectors?

In this era of rapid industrialization, blockchain technology unlocked new values across businesses and industries. To sustain continual growth, the businesses are attaining a sense of ecosystem-level collaboration and optimization. Meanwhile, blockchain promises to provide trusted data, end-to-end visibility, and automated workflow. The technology helps to optimize multipart workflows around trusted data, streamline shared processes, minimize disputes, and increase product authenticity with asset tokenization. Due to such contributions, an increasing number of sectors are adopting blockchain.

Blockchain Technology in different sectors:

Banking and finance

Blockchain has the most significant impact on the banking and finance sector. It influences the user’s trust in the financial world’s universal currency. Under blockchain, old processes of record management can be transmute by innovation, security, speed, and transparency. It can reduce the rate of fraud and crime to meet the collective trust of the users. Moreover, it ensures operational simplification, faster settlement, and automated compliance.

  • Operational simplification met through real-time tracking of bank guarantees and credits.
  • For faster settlement, there is a point-to-point transfer of funds between financial institutions with no interference of third parties.
  • Automated compliance depends upon more accurate and faster compliance and reporting. It draws on immutable data records.

Healthcare

Currently, the healthcare sector is facing a high rate of challenges related to access of private information. As the information is centrally located, it takes hours to locate the right file, and lead to the chances of data theft, breaches, or losses. Thus, blockchain is important to this industry to eliminate the need of central authority and enable rapid data access. Meanwhile, the distributed ledgers of blockchain containing sensitive health data are not easy to hack, to resolve the security issue for private medical information. An American company ‘United Healthcare’ has already deployed a blockchain based Medical Record Management system to improve privacy, interoperability, and security of the medical records.

Supply chain management

Blockchain ensures a resilient, trusted, and transparent supply chain with its extensive features. The conventional supply chain didn’t always provide visible, transparent, and trusted data. It was a major threat to the product authenticity and responsible sourcing for the stakeholders. However, blockchain helps supply chain leaders to handle data disruptions and build resilient solutions for the future. Moreover, the blockchain addresses the limitations of the current world ERP systems and financial ledger entries. It also reduces supply chain conflicts oriented to information, finance, and inventory flows.

Crowdfunding

Blockchain based crowdfunding platforms can open different possibilities for startups to create their own digital currency. It is a peer-to-peer fundraising model to remove the need for intermediaries. Moreover, it doesn’t rely on any other platforms to create funds. The startups have no need to be compliant to any rules due to the decentralized nature of blockchain. Any person on the internet can contribute to any project that raises a universal opportunity of fundraising. Meanwhile, blockchain relies on asset tokenization to provide investors equity of ownership.

Miscellaneous

Other than discussed sectors, blockchain is ready to transform a wide range of sectors such as automotive, government, insurance, telecommunications, retail, travel and transportation, manufacturing, oil and gas, etc. These industries can rely on blockchain records, supply chain traceability services, trustworthy financial transactions, and innovative mobility services.

Conclusion

The application of blockchain is beyond banking services. There is an increasing number of sectors that can reconsider the potential of blockchain to transform their entire supply chain and meet more visibility, transparency, and compliance. It can further reduce fraud and information threats, and enhance overall business growth.

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IOTRIC

IOTRIC stands out as a prominent, end-to-end software development firm focusing on MVP and Product development solutions.