July 23, 2019, | AtoZ Markets - Different international companies and technological giants, including IBM, Facebook, Goldman Sachs, and many others, use the blockchain technology for solving various tasks. It gives a hint to think that the day of the global blockchain adoption is quite close.
Despite disagreement upon the term of the cryptocurrencies existence, most of the experts in the crypto community believe that the blockchain technology came here to stay for long.
The experts have estimated that by 2025, 10 percent of the global GDP will be stored on the blockchain. In which areas the blockchain technology is successfully used and flourishing nowadays? Atoz Markets decided to find some examples.
The adoption of blockchain technology in the car industry
Aviv Lichtigstein an entrepreneur, the founder, and CEO of 101Blockchains.com - a cross-industry community of leading Blockchain practitioners believes that "blockchain’s impact just cannot be ignored.
"If you are like me, then you already know that there are a plethora of blockchain use-cases out there. Out of which, I think, the most impact would be on the supply chain, and then followed by healthcare. Blockchain is a boom for the supply chain," Lichtigstein added.
Now you can observe different examples of blockchain applications in different industries, including artificial intelligence and the auto industry.
Last year, IBM, the multinational IT company stated in its report, entitled as "Daring to Be First", that, the blockchain technology can revolutionize the auto industry, by making supply chain management and financial transactions transparent. According to the report, 62% of car manufacturers believe that the blockchain technology will be a "disruptive force in the industry by 2021.
Many financial companies, like Goldman Sachs and JP Morgan, have already invested or plan to invest in the blockchain technology. The blockchain experts believe, that this technology can significantly simplify traditional banking operations making them less time-consuming. Transactions that are carried out on the blockchain network have four main advantages:
- economic efficiency;
The proponents of the blockchain adoption in the financial institutions believe that it reduces the risk of interference from the scammers, due to database decentralization.
Blockchain can also help significantly reduce transaction costs in the identification and verification of customers procedure (“Know Your Customer”). In addition, the blockchain also could be applied in the sector of cross-border payment and help to combat money laundering.
Healthcare and blockchain
The easiest use of the blockchain in healthcare is to track the supply chain of conventional drugs or drugs that contain narcotic substances and are subject to special control. Moreover, the blockchain platform can be used to store patients' vaccination records or any other medical data. Storing medical records on the blockchain reduces the risk of personal data being transferred to third parties or lost due to system failure.
The blockchain technology in supply chain management
Depending on the product, a modern supply chain can consist of tens or even hundreds of stages and stretch over thousands of kilometers across the world. Transportation is managed by dozens of specialists who have to work with tons of documents, and logistic processes are sometimes delayed for weeks and months.
The blockchain logistics system increases the reliability and transparency of the supply chain. It helps to avoid discrepancies in the documentation.
In the food industry, it is imperative to track each product accurately. Blockchain Food Safety Alliance in China that has been set up by the joint venture of Walmart and IBM, uses blockchain to monitor Chinese pork shipments. Similarly, the blockchain is used, in particular, in Nestle and Unilever. The blockchain technology for the evaluation of each stage of supply chain management is more secure and transparent than the traditional network technology.
Aviv Lichtigstein the blockchain entrepreneur:
"The current way of handling supply chain is full of loopholes and inefficiencies. With blockchain, the supply chain can become more streamlined, trustful, and transparent. IBM, for example, is already working with Walmart on their Food Trust.
It is an excellent showcase of how blockchain can change the world. Target’s ConsenSource is yet another supply chain project which utilizes Hyperledger Sawtooth. Apart from the supply chain, I also believe that blockchain will have a significant impact on healthcare. Right now, healthcare requires reform. The centralized approach is flawed. The only decentralized approach or a hybrid approach can change how healthcare is maintained. "
The blockchain technology in fine arts
The blockchain helps to solve the key problems of the art market: issues of origin, copyright, transparency, ownership, and authenticity. In recent years, the share of sales of paintings online has increased significantly - in 2016, it accounted for 8.5% of the total market (15% more than in 2015).
One of the means of blockchain technology’s adoption is public services in governmental institutions. Different national authorities have already shown interest in the blockchain. Records of the public can be easily stored in a decentralized data management structure through this technology. Other use cases include voting, public records, and education.
In 2017 the government of Georgia signed an agreement to use the Bitcoin Blockchain to safeguard and authenticate state operations, including property transactions.
Last April the state of Arizona House of Representatives’ Rules Committee passed the bill that would enable residents to pay their taxes with cryptocurrencies.
A month later, the Florida State Taxation Authority announced a partnership with BitPay processing service in order to start accepting taxes and fees for property, driver's licenses, identification cards, car numbers and other documents in Bitcoin and Bitcoin Cash.
The same year, the State of West Virginia tested the first government-run, blockchain-mediated voting system.
As you can see, the use cases of the blockchain technology may vary, but the benefits derived from it remain unchanged. Blockchain network ensures security, redundancy, immutability, and transparency of the data.
What main obstacles the blockchain adoption could face?
"Blockchain makes it easy for organizations to implement a better solution than previously imagined. However, the implementation can be hampered by obstacles.
As a blockchain enthusiast myself, I found that, it is hard to find relevant and useful information. There are other implementation challenges include energy-hungry consensus mechanism, blockchain regulations, standardization adoption, integration, scalability, and security.
Blockchain is undoubtedly a ground-breaking technology, but the adoption challenges are real. One more adoption challenge is the lack of skilled developers. As I mentioned, blockchain is new. It means that there is a lack of qualified blockchain developers out there. With every single passing year, you can find an ever-rising increase in blockchain-related positions.
Another challenge that I think is worth mentioning is standardization. With different organizations or enterprise working on their blockchain solution, it becomes had to standardize. This means that it is hard to collaborate on projects.
Blockchain is innovating at a rapid pace. I think projects like Hyperleder is what we need, which is working towards frameworks that can help enterprise adopt blockchain in a more standardized manner."
Think we missed something? Let us know in the comments section below.