The fourth industrial revolution is all around us, we are living in the times of change that is happening faster than at any other period of the recorded history. The benefits of technological leaps and disruptive innovations are undeniable, and yet many people stay conservatively resistant to technological transformation. They lack the vision, the urge, and the persistence to master and utilize new approaches that would inevitably make their life more fulfilling. But technological innovations, naturally, tend to impact not only our personal lives but entire industries as well. With the emergence of new technologies, business is forced to keep up or threatened to be replaced. One of the latest technologies that brought major disruption was blockchain. Many industries will soon be disrupted by blockchain, and you know it, so let’s consider 5 industries blockchain could transform in the near future.
Today banks, or rather governments, create, support, and distribute fiat money. They are considered to be “trusted” financial institutions that function as a third party while conducting transactions, and keeping balances in check. But at the same time, the amount and scale of the problems faced by banks today is no secret to anybody.
The banking industry is unarguably one of the most centralized and often nontransparent industries. And that is where blockchain technology comes into play. An inherently secure system, blockchain, is up for the task to solve at least some of the banking problems, and maybe even transform outdated financial ecosystem altogether. This technology can easily secure and store permanent records of multitudes of transactions that take place in any bank every day. And this, in turn, will significantly diminish the risks of fraud. At the same time, with the help of blockchain, money transactions could become faster and cheaper.Major international banks, like JPMorgan or Bank of America, are highly aware of the potential that blockchain technology holds and invest in the new technology accordingly.
Real Estate Industry
Anyone who has ever dealt with the amount of paperwork while purchasing or selling a house knows how exhausting it may be. Blockchain technology can revolutionize the industry by reducing the cost, time, and increasing the security of the transactions. With smart contracts that release funding only after certain conditions are met, blockchain can potentially eliminate the whole escrow process, while contributing to the reduction of the frustrating commission rates. Blockchain technology has obvious potential to induce efficiency and transparency in the industry while removing drawbacks and additional costs of the existing system. And with the evolution of blockchain technology, it will force more and more companies in the field to revisit their business model, strategy, and processes.
Digital advertising is another example of an industry blockchain that could transform. It is no secret that this massive revenue-generating field is deeply flawed and tends to waste time and money on all sides. Today internet users are bombarded with the increasing amount of irrelevant advertisements, and even though user data is collected and exploited on the industrial scale, the targeting leaves much to be desired.
But what if you could have complete control of what ads to view? What if advertisers would be able to pay you directly to watch their ads? Great, right? Well, it is exactly what blockchain can introduce to the industry. As a result, many ads that were normally blocked would reach their audience, while decreasing rates for advertisers and achieving the ultimate targeting.
The energy industry was always at the forefront of progress and innovations, and there is no reason to believe that with the blockchain technology, it will be any different. Big companies from the US, Europe, and Asia are already leading the way. According to public data, energy blockchain start-ups are raising millions every year. Enabling a peer-to-peer energy trading model will be especially beneficial for renewable energy. As solar panels become widespread, people will be able to connect to the grid and sell their excess power. And the smart contracts will take care of the rest – controlling transactions, securing the execution of the predefined rules, and balancing supply and demand. Therefore, there is no doubt that blockchain technology in the energy sector can become a major milestone on the road to new business models across the industry. And it very well can become indispensable for managing the sector’s growing complexity.
Large-scale industries always demand an ever-increasing amount of raw computational power. According to some estimates, the cloud computing sector will see a further increase in value and will reach USD 623.3 billion by 2023. Any computationally intensive company heavily relies on the rapid development of the industry. Still, the operation of technological giants like Amazon, Microsoft, and IBM, has led to the oligopoly and increased rates. And blockchain technology can fix this problem because unlike traditional providers, blockchain-based cloud computing services will rely on the idle computational power spread across millions of computers worldwide, rather than on centralized data farms.
Of course, many more industries will be affected by blockchain than just these five mentioned above. And this transformation and disruption is definitely a good thing, especially if wisely addressed. Whether you are ready to embrace new technologies or not, they are already knocking on your door, so you might as well get used to it.