Blockchain has been around for a while now, and while it was mostly associated with cryptocurrency, the security benefits have been something that more industries have looked to use. Blockchain offers a transparent and secure way to manage transactions, improve efficiency, reduce costs, and reduce fraud.
So, what industries have benefited from the secure way in which companies like NGS Crypto work?
How does blockchain work?
If you’re not familiar with blockchain, then don’t worry – you’re not alone. Essentially, blockchain is a massive digital ledger that everyone has access to.
It records all transactions and keeps them transparent and secure. The system allows for peer-to-peer transactions and is decentralised. However, the technology that it uses to make this possible is what is interesting when applied to different industries.
The name blockchain gives away how it is built, it is built of blocks of information (transactions) that are linked together via a chain. Each of the blocks is completely secure and that is why it is almost impossible to steal, tamper with or alter the data.
What are the benefits of using blockchain?
There are some big benefits to using blockchain rather than the traditional systems that we have in place right now.
● Blockchain is efficient, and what that means is that it will streamline processes – leading to the next benefit.
● Reduced costs for transactions.
● The security that blockchain uses is quite unlike almost anything else, so it makes it hack and fraud resistant – vital for all companies that deal in data of any kind.
● There is a high level of trust when blockchain is used, because it removes the need for ‘middle men’.
So what industries could and should be using blockchain?
Energy
The energy market has been one of the most volatile in the last few years, and millions of people are feeling the squeeze. When it comes to blockchain usage, though, it can be used to help to create more transparency within the market by helping to create new energy contracts.
Supply chain management
There are a lot of moving parts in the supply chain, and at any one time those items need to be tracked between leaving their origin point and their destination.
To make sure that the goods that left the origin and the ones that arrived at their destination have not been tampered with and are not counterfeit. And, another area where blockchain can help is to help improve efficiency and the supply chain process in total.
Financial sector
Almost everything in the finance sector needs extreme care of security.
Millions of people make applications to financial institutions, and many hold private data including personal information. Although most financial institutes have tight security and strict policies they are by no means risk free.
Blockchain is a well known application and solution for the financial industry because it is so deeply tied to transactions, wallets and fiat currency. Blockchain makes absolute sense when implemented into financial businesses.
While the currencies that are usually tied to blockchain aren’t centralised and are not subject to government control, that doesn’t mean the technology they use can’t be applied elsewhere.
Blockchain presents an opportunity for financial institutes to make new ways to trade bonds, stocks and potentially a whole range of financial assets.
If blockchain were to become more of a feature in the financial industry there would be a higher transparency between trading (thanks to the ledgers being public) and they may also become more efficient too.
NGOs
Non-profit organisations might not be an obvious place for blockchain to be implemented but, it would prevent many of them coming under fire for not being transparent with what they do.
There have mee more than one NGO that has been found to be sending donations to the pockets of owners rather to the causes that it had stated during collection.
When blockchain comes into play, every transaction on there has to be public, which means there is more transparency than ever.
A key point where it could be used to great effect is by tracking donations, and if NGOs begin to accept cryptocurrency as a new form of possible donation.
Education
While it is something that most of us wouldn’t do, there are millions of people who will lie about what qualifications they have achieved and when.
Saying you have a diploma or a degree from years ago could be hard to track. Although there are much newer systems in place now to help companies check the legitimacy of these claims – not everyone does.
If blockchain were to be used somewhere in education, it could be used to great effect when it comes to businesses being able to quickly and efficiently check to see what diplomas and certifications people really have.
What does the future of blockchain look like?
Although blockchain has been around for a long time, there are still many uses that are yet to be thought of. Not only that but as every technology advances, there are more applications being found all the time.
As a technology, it could still be classed as the early stages, which means there might be some significant and exciting impacts in the future.
While the industries above are some of the places that are already exploring and implementing blockchain technology, there are some other industries that would be likely to also make additions to their systems.
Cybersecurity is an obvious place for blockchain, considering blockchain is so secure. Voting systems could see blockchain used to ensure that votes are accurate and there can be no tampering. And, perhaps another interesting application would be in identity management.
Over the next few years we should expect to see more industries putting blockchain somewhere into their processes, and it should mean that they are more secure and efficient than ever – exciting.
One area that we haven’t mentioned but is using blockchain and exploring all of its possibilities is retail: The impact of blockchain technology on retail: from payments to supply chain.
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