When Bitcoin arrived in 2009, people were fascinated by the concept of cryptocurrencies and the brave new world they seemed to herald. However, it soon became apparent that digital coins were not a universal favorite: their success has been mixed, and mainstream adoption remains elusive.
On the other hand, blockchain – the technology underpinning cryptocurrencies – has come to be regarded as one of the greatest innovations of the digital age. It has the potential to transform virtually all industries, delivering tremendous economic benefit in the process: according to Gartner, blockchain technology will generate over $176 billion worth of business value by 2025, the amount surging to $3.1 trillion by 2030.
Despite the growing pains associated with the implementation of any new technology, these five industries are already proving that blockchain adoption can bear ample fruit.
- Financial Services
Blockchain seems to be an excellent fit for this industry. Systems incorporating the technology can settle transactions almost instantly, allowing significant savings in terms of time and fees. In addition, payment records are immutable, which ensures traceability and accountability.
Aside from cost reductions, improved transparency, speedy transactions, and enhanced security, blockchain is helping financial institutions identify new product opportunities in the digital space and improve their existing offerings.
This is an industry where the secure storage and transmission of data is critical. At the same time, breaches constantly plague the sector, resulting in enormous costs. By applying blockchain-based solutions, the industry is boosting medical records security and facilitating collaboration among healthcare providers, which, in turn, improves outcomes for patients.
Equally beneficial is the ability of blockchain systems to improve consent acquisition and management, simplify the hospital admission process, automate contract execution, verify doctor credentials, and facilitate compliance. “The adoption of the blockchain technology could save the healthcare industry up to $100-$150 billion per year by 2025 in data breach-related costs, IT costs, operations costs, support function costs, and personnel costs, and through a reduction in frauds and counterfeit products,” as noted in a recent Healthcare Weekly article.
With autonomous vehicles poised to disrupt their industry in a major way, car manufacturers look at blockchain as an ally. Leading automotive companies are using the technology to streamline their supply chains, enhance security, combat fraud, improve car services, and facilitate payments.
The importance of blockchain for this industry is highlighted by the rapidly growing investment in technology. According to one estimate, the automotive blockchain market will grow at a compound annual rate of 31.2% from 2020 through 2030, its value rising from $350 million to $5.29 billion.
Besides being one of the fastest-growing industries, iGaming is also among the leaders in blockchain adoption. Traditionally a technology-hungry sector, it is capitalizing on the ability of blockchain to automate critical processes via smart contracts. This enables operators to scale with greater ease and lower costs.
Moreover, the security and transparency of blockchain-based systems help build trust and foster loyalty among customers. The technology has also enabled the introduction of alternative payment methods for casinos that accept PayPal, expanding access to iGaming platforms and facilitating regulatory compliance across jurisdictions.
- Real Estate
In an industry where multiple parties intersect, blockchain has emerged as an effective tool for reducing the enormous volume of paperwork, verifying ownership, improving record-keeping, and ensuring transparency. This results in faster transactions and reduced costs.
These are only a few industries reaping the benefits of blockchain implementation. The technology is gaining traction across the board, and its transformative potential is perhaps best summed up in the words of William Mougayar, tech entrepreneur and author of The Business Blockchain (2016). As he put it, “The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.”