Although blockchain technology has been around for over ten years, it has only recently started receiving the traction we are now seeing across varying industries. Originally, blockchain was created to ensure the security surrounding Bitcoin transactions, but since its inception, this technology has grown into something much more flexible with many more industries taking advantage of its numerous benefits.
In its essence, blockchain is a decentralized digital ledger that keeps transactions as secure as possible due to its transparent nature. The technology also allows parties to complete business with each other without the need for a middleman/third-party such as financial institutions or banks. This boost in transparency has helped to maximize efficiency and lower costs, ultimately transforming businesses that use it.
If, even with all these benefits, you haven’t warmed up to the idea of blockchain, Bitcoin, and cryptocurrency, you’re not the only one. It’s estimated that less than 20% of people own some form of digital currency, with most of these being investors who have made purchases over the last couple of years due to the increasing media hype around the technology.
Regardless of whether you are looking to make personal investments, run a business, or use Bitcoin instead of fiat currencies, it’s likely that you’ll be affected by cryptocurrency in the future. Here are the transformations we are expecting to see in the coming years.
Industries Benefiting from Bitcoin
There are many industries that are benefiting from the use of Bitcoin and other digital currencies. Here are a few of the most affected.
Gambling
The introduction of cryptocurrencies such as Bitcoin has had a profound effect on the gambling industry. The extended levels of privacy, security, and convenience that it offers makes it a much more favourable way to gamble for online players. Bitcoin has seen a wide increase in acceptance from many gambling establishments: an updated Bitcoin casinos list in CryptoNews shows the latest online casinos that accept deposits in cryptocurrencies.
The reduced transaction costs compared to conventional payment methods have further transformed the gambling industry. The removal of a third party has helped reduce this cost due to the decentralized network that comes with Bitcoin. Users can benefit from much lower transactional costs when putting funds into their accounts from their Bitcoin wallets and withdrawing funds from their accounts.
Online casino users are given complete anonymity with their financial transactions, reducing the risk of financial data breaches and identity theft. Crypto users do not need to provide any sensitive information such as bank account numbers or social security numbers when making a purchase.
The speed of these transactions is also changing the way the gambling industry works. Previously, players would have to wait days, sometimes weeks for a transaction to be processed, but the use of Bitcoin is instant, making it ideal for those players who value speed and security. Deposits and withdrawals are streamlined for players, maximizing their bankrolls and allowing them to play for longer or more frequently.
Finance Industry
The financial industry was among the first to adopt blockchain technology. With the advent of cryptocurrencies like Bitcoin and Ethereum, blockchain has evolved into a powerful tool for transacting safely and transparently without middlemen.
Blockchain technology also allowed for the development of smart contracts, which automate the execution of contracts. Smart contracts also remove the requirement for a middleman, by allowing the two parties to interact with one another securely, ultimately enhancing efficiency.
Cryptocurrencies and smart contracts are among the applications in which blockchain technology is used, as well as fraud prevention, KYC (Know Your Customer) compliance, and AML (Anti-Money Laundering) compliance. Transparency can be enhanced and fraud risks reduced by using blockchain technology in financial institutions.
Healthcare
There is also potential for significant gains from blockchain technology in the healthcare sector. In this industry, privacy, interoperability, and data security are among the biggest challenges. Blockchain technology has the potential to alleviate these challenges.
Patients receive much more control over personal health data through using blockchain technology, ensuring that all sensitive information is kept private and as safe as possible. Researchers, doctors, and any other healthcare members or staff can be given blockchain health data information by patients with need-to-know access.
With blockchain’s ability to promote interoperability between different healthcare systems, doctors and other healthcare workers can access patient data instantly. Patient outcomes and diagnosis accuracy could improve, and overall care for patients could be better.
Supply Chain Management
One of the industries taking true advantage of blockchain technology is supply chain management. Incorporating blockchain into a business can lower the level of fraudulent opportunities, counterfeiting, and in this case, supply chain inefficiencies, by allowing more secure and transparent tracking of supplies and products.
Every stage of the supply chain can be traced and recorded with the introduction of blockchain in an open and safe way. Businesses can do this to reduce the chances of fraud and counterfeiting while also identifying and addressing any bottlenecks found in the supply chain.
Blockchain technology can also boost customer confidence and compliance with regulations by facilitating greater transparency in supply chain operations.
Mainstream Companies Are Already Adopting Blockchain
Things began when the CEO of MicroStrategy, Michael Saylor, endorsed Bitcoin publicly. Saylor came out and stated that Bitcoin is “superior to cash” which raised intrigue for many institutions, ultimately beginning a snowball effect for the digital currency we know today. Other global companies that have pushed the use of cryptocurrencies are:
PayPal
PayPal was one of the first major companies to promote digital transactions. The company has always allowed for simplified transactions across the world in a matter of moments, making the jump to cryptocurrencies an obvious segue.
PayPal customers have recently been given the ability to make transactions and purchases with various digital currencies, such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. However, many crypto lovers have criticized PayPal for not allowing the ability for users to transfer coins into private crypto wallets—they remain stored on PayPal instead. This feature is something we can hopefully see happening in the future; the steps being made are definitely in the right direction.
Tesla
The creator of Tesla, Elon Musk, has made stirs in the media with his connection with digital currencies. Being the cult leader of meme-coin Dogecoin, with his Twitter efforts to get ‘to the moon’, Musk has turned his endeavours to Bitcoin. Altering his Twitter bio to include Bitcoin and later purchasing $1.5 billion of Bitcoin for Tesla has brought international acceptance towards cryptocurrency. Tesla previously allowed customers to buy their vehicles with Bitcoin, but later withdrew this, and now only accepts Dogecoin as payment for electric cars.
Conclusion
With the development of transparency, efficiency, and security, blockchain technology has the ability to change lots of different industries. Blockchain has become the perfect medium for making transactions trustworthy and safe, removing the need for middlemen or third parties that ultimately slow down the process, and has a lower potential for users to fall victim to fraud.
The use of blockchain and its many consensus mechanisms is already transforming industries and business models across many sectors, from healthcare to gambling, and many more. In the years to come, we can expect it to be adopted even further, as the technology continues to mature and develop.