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Blockchain is a decentralized digital ledger that stores data in blocks that cannot be hacked or changed. It involves a database of transactions that are stored on a network of computers making it secure and reliable.
Introduced as a technology to build cryptocurrency Bitcoin, Blockchain development services are now used to develop applications in various other systems.
As per a report published on Market and Markets, the Blockchain application development market was valued at $7 billion in 2022 and is projected to reach $39.7 billion in 2025.
This blog post explains various industries where Blockchain solutions are being applied to modernize business processes.
Leading Applications Of Blockchain Technology in 2023.
Blockchain has the potential to revolutionize various sectors by providing secure ways to conduct transactions and store data. Here are the top use cases for Blockchain in 2023:
Banking and Finance
The finance sector is getting revolutionized by Blockchain at great speed. By providing efficient and secure ways to conduct transactions, financial institutions can eliminate the need for intermediaries. This helps in reducing costs and risks associated with the process. A leading financial services provider, JP Morgan & Chase has already built its blockchain based payments system for facilitating faster and more secure cross-border transactions.
The healthcare sector is a complex industry with critical data involved at various touchpoints. Also, maintaining documents, patient privacy, and correct medications are essential for any healthcare business to survive. By using blockchain, healthcare service providers can transfer patient data, reduce high administrative costs, and improve patient outcomes without any compromise. Medicalchain is one such establishment that allows patients to securely store and share their information on its blockchain based platform.
Supply Chain Management
Transparency, Security, and Speed are core attributes of Blockchain technology. Supply Chain Management faces various challenges including inefficient processes, fraud, and counterfeiting. Such challenges give rise to a lack of trust among parties and can lead to financial loss ultimately. Applying blockchain can be a surefire solution to enable transparency through a tamper-proof ledger for all transactions and events.
Recently, Maersk developed a blockchain-based platform “Tradelens ” to track shipping containers and enable real-time collaboration with different parties.
The education industry is revolutionizing with new tech-oriented learning practices. However, there are concerns with credentials, data privacy, and so on. A minor challenge in the learning process can break employee trust and affect recognition of the achievements of students. In addition to this, document forgery has become a new pain for hiring managers and educational institutions.
Blockchain being a highly secure system can easily exercise transparency in both the process. Furthermore, certifications can also be issued on Blockchain which can be easily validated by the authorities.
The Real Estate industry generally has high-ticket transactions which require greater trust and reliability. By leveraging Blockchain technology in the real estate industry, businesses can create a tamper-proof, immutable ledger of ownership and transfer history. This assists in preventing fraud and disputes over property ownership.
Blockchain technology is a highly adopted tool for cyber security. Since it can create a secure record of transactions and data, it can help prevent data breaches and cyber attacks by offering a decentralized network.
Blockchain-based encryption practices also help secure communication through distributed ledgers. Using this technology, communication remains private and secure.
The patent ecosystem involves multiple parties, including, patent offices, lawyers, and investors. With multiple stakeholders involved, it can be challenging to ensure the security and maintenance of the patents.
Blockchain technology can provide a secure, transparent, and immutable platform for managing patents through the entire lifecycle. Also, Blockchain development can be used to create smart contracts for automating licensing agreements, ensuring that the terms of the agreement are always followed. This comes in handy to reduce the number of disputes over patent licensing.
Anti Money Laundering
Anti-Money Laundering (AML) is an area where blockchain technology can play a vital role in the coming years. AML regulations require financial institutions to monitor transactions to prevent the laundering of illegal money.
Blockchain being fully decentralized, allows the creation of a tamper-proof digital ledger of all transactions. This assists financial institutions in real-time monitoring of the transactions to validate the legitimacy of all parties involved in a transaction.
Digital identity represents an individual’s identity on any digital platform. So, it is important to ensure the privacy and security of our identity attributes. Issues such as password breaches, username theft, and so on are some common threats to digital identity
Blockchain technology can be a promising solution to this problem by enabling secure and decentralized digital identity management platforms. While traditional identity management works on centralized databases, which are vulnerable to hacking attempts, Blockchain uses a centralized approach.
Asset tokenization involves converting a physical asset into a digital token that can be traded on a blockchain network via NFTs. Since blockchain is an immutable public ledger, it can be effectively used to ensure that your ownership of the token is never at risk. Asset tokenization on a Blockchain network helps in transparency, accessibility, and liquidity. Also, blockchain development services can help you with smart contracts to automate various tasks in Asset Tokenization reducing the chances of errors.
From being a small technology for a cryptocurrency coin, custom blockchain development is now being adopted in sectors including Blockchain for Real Estate, Fintech, Payment, and many more. Its capabilities to provide a secure, fast, and reliable environment for transactions have helped businesses across the globe. Blockchain has evolved in various industries and experts believe that the technology is yet to reach its true potential.