The Industry Gamechanger – The Impact of Blockchain Technology
Intuitively, the term blockchain is associated with cryptocurrencies. That could be because digital assets were the first application for novel technology. However, the hype surrounding Bitcoin and Co. is almost over, and the virtual coins have now primarily established themselves.
But the experience gained with the fast, secure and anonymous transactions has shown something significant. There is much greater potential in blockchain technology that can and will revolutionize entire industries.
The way people conduct financial transactions these days will undoubtedly soon be a thing of the past, thanks to blockchain. By this, we don’t just mean payments in cryptocurrencies, which are already officially recognized in some countries worldwide. The new technology will also fundamentally change traditional financial transactions because it offers something that banking has always lacked: faster and more efficient processing of all banking transactions. The reason is that a distributed data book enables the automation of financial processes. At the same time, the blockchain also offers enormous security due to the encryption used, which corresponds to the highest security standards of banking institutions.
The result is faster and also cheaper financial services. This will positively affect all customers of the banks, but especially billions of people in third-world countries. Blockchain technology will enable them to access banking services for the first time.
Optimal Management of Supply Chains
The decentralized recording of all transaction data characterizes blockchain technology and makes it unique. As a result of this aspect of the technology, all data sets can be managed remarkably securely while also being transparently available to all parties involved. Supply chains in various production branches of the economy can benefit from this because you can monitor the entire supply chain in real-time. Automatic processing also helps to reduce potential human errors to a large extent. Such optimal management naturally means lower costs. For example, using the blockchain, customers can trace the origin of the products they purchase back to their provenance. With this, it will be possible to ensure their authenticity and whether they have been produced following fair trade standards.
The Internet of Things (IoT) Network
This promising application for the “distributed ledger” technology, as the blockchain is also called, is quite apparent. Because blockchain technology is decentralized, and that will be of particular benefit to the billions of network-enabled devices. The public ledger does not require a central location to manage IoT device communications. Direct data exchange between the individual participants in such a global network is simply in its nature. As a result, one can realize a huge undertaking that has pushed every other network technology to its current limits.
Elections And E-government
What until now has sounded like a political party slogan will soon be a reality, thanks to blockchain. The prerequisite for this is, of course, that politicians have the necessary will to implement it.
Falsifying the election results will only be possible with the transparent processing that characterizes the blockchain. A register of votes cast visible to all voters and parties will ensure that changes or even removals of legitimate votes are noticed. Blockchain technology represents the future of electronic vote counting that is fair and impervious to any manipulation.
Another positive impact of the blockchain will be the significant bureaucracy reduction. The so-called e-government can automate administrative processes and make them much more efficient and, above all, more transparent. This will be a crucial step in the fight against corrupt activities.
Crypto: Entertainment and Arts
The potential applications of blockchain technology in the entertainment industry are so numerous that they can easily boggle our imaginations. Some of these have already become a reality. In the crypto casino, for example, you can deposit and place bets with digital funds. Passionate gamblers benefit from the enormous security of payment processing, whereby transactions also occur quickly. This is a big plus if you want to get straight to the point, i.e. if you’re enjoying the numerous casino games without the hassle of waiting.
The blockchain will also ensure that artists are fairly rewarded. The much-discussed intelligent contracts, also based on blockchain technology, will automatically eliminate any problems with artwork licenses. It will also allow musicians and other creatives to bypass record labels and intermediaries and get paid directly by their fans.
The technology, originally intended only for cryptocurrencies, has given birth to new works of art that only exist digitally and are inimitable. We will all admire art in the form of Non-Fungible Tokens (NFT) very shortly.
The effects of the blockchain on all possible areas of our lives listed here still need to be completed. Only the future will tell what great opportunities and surprises await us regarding blockchain.