We can’t talk about revolutionary technologies in the modern world and fail to mention blockchain.
A report prepared by Grand View Research shows that the blockchain market was worth $5.92 billion in 2021. This market is expected to grow at a compound annual growth rate (CAGR) of 85.9% from 2022 to 2030.
Why are people so bullish? Blockchain is known for its core characteristics: transparency, immutability, automation, and decentralization. Many associate blockchain with cryptocurrencies. It goes beyond that. Let’s look at the different applications of this technology.
Archaic operational processes have been the order of the day in the financial sector. The sector suffers from slow processing speeds where some parties have to wait days for international payments to process.
There are also security vulnerabilities where some people have lost money when making transfers. Blockchain eliminates most of these challenges by introducing peer-to-peer transactions, meaning there is no intermediary in-between.
Transferring BTC from one wallet to another takes a maximum of 40 minutes; some cryptocurrencies can handle instant transfers.
The current capital markets have loads of challenges, such as barriers to issuance and counterparty risks.
A typical capital market has various players; fund managers, issuers, regulators, and investors, who stand to benefit from blockchain, as highlighted by CONSENSYS.
Issuing becomes easier, fasters, and cheaper through programmable digital assets and securities. It takes a few minutes to issue new securities, and their corresponding obligations and rights are automated and encoded.
Central Bank Digital Currencies (CBDCs)
Even though the original idea of crypto was to have decentralized digital currencies, centralized organizations are taking advantage of the revolution. Governments are creating CBDCs to tap into the technology.
Governments can now track expenditure and reduce corruption through centralized digital currencies. The records are immutable, meaning suspicious spending is trackable. CBDCs also offer faster and cheaper transactions and help governments fulfill mandates.
If you are active on social media platforms, there’s a high chance that you may have different usernames on platforms such as Facebook, Instagram, Twitter, and TikTok. Convincing people that you are the same person may be a challenge.
Identity management has always been a challenge. An identity system on a blockchain is interoperable and unified. The tamper-proof infrastructure protects users against identity theft and offers them greater sovereignty over their data.
Healthcare and Lifesciences
Sometimes healthcare can be a matter of life and death. The management of medical data has been a challenge. In emergency cases, medics struggle to get patients’ medical data to avoid administering the wrong medications.
Blockchain-based healthcare solutions make it easy to store and track such data and improve healthcare services. These systems utilize public and private blockchains to group data that can go to the public and data that can only be accessed by authorized personnel.
The adoption of blockchain technology in various sectors is a wave we cannot ignore. However, there must be the proper infrastructure to make the adoption real and sustainable. Individuals, enterprises, and governments have invested so much in research, and it is only a matter of time before we see the technology embraced by most global industries.
15 Applications for Blockchain Technology | The Motley Fool
The idea of a ( blockchain was first conceived as the mechanism supporting Bitcoin CRYPTO:BTC). To solve the double-spending problem associated with digital currencies, Satoshi Nakamoto devised an immutable ledger of transactions that chains together blocks of data using digital cryptography.
9 Blockchain Uses and Applications in 2022 | SoFi
Blockchain technology involves the use of a decentralized, distributed ledger of transactions on a peer-to-peer network. One of the main reasons this discovery has been so revolutionary is that for the first time, people can do things in the digital world without needing a third-party intermediary.
Blockchain Use Cases in 2021: Real World Industry Applications | ConsenSys
What are the Use Cases and Applications of Blockchain Technology? Blockchain technology's core characteristics include decentralization, transparency, immutability, and automation. These elements can be applied to various industries, creating a multitude of use cases. Here are what we believe to be the most pertinent blockchain use cases for enterprises, institutions, and governments.