Since Bitcoins launch in 2009, it established itself as the first peer to peer electronic system and became the pioneer to the altcoins. Tech enthusiasts quickly realized that the underlying technology behind bitcoin called blockchain has enormous potential to change the world for the better. With DeFi, DApps, Smart Contracts and other developments on the way, after just one decade we already see blockchain being integrated in different sectors. As blockchain can be useful in many ways, this post should break down the main industries which will get disrupted with crypto.
10. Content Creation Platforms
Let's begin with an industry which has seen an tremendous growth in the past: Content Creation Platforms.Although Spotify, YouTube, Twitch and other content platforms enable sharing your content with a growing community, it has also proven to have serious flaws which can be solved using DLT. Some advantages blockchain would bring into the space include:
- peer to peer payments: blockchain startups are working on a solution to allow creators getting paid directly from their subscribers without having to give a large percentage to the platform itself. Especially small creators who try making a living out of their content can benefit from this feature.
- transparency: It's no secret that most centralized platforms are not being transparent about e.g. the ads income, user data that gets tracked and so on. Tech giants like Facebook make millions selling user data and placing unwanted ads on the platform while the end consumer ends up on the losing side. A DLT solution that gives insight what data gets extracted and for what it's being used for will gain the trust of customers and build up the platforms reputation.
- censorship resistance: Latest scandals like the crypto ban show that freedom of expression is often disregarded by the platforms and why it's time to decentralize the web. Although decentralized content creation platforms lack user adoption, we must remember that the crypto market in general is still in an early stage and the platforms could experience a breakthrough in the future, once blockchains real potential is unveiled.
The global insurance market is based on trust management. Blockchain is a new way of managing trust and can be used to verify many types of data in insurance contracts like the insured persons identity. So-called Oracles can be used to integrate real world with blockchain smart contracts. This technology is very useful for any types of insurance hat relies on real world data. Some insurance application which are being developed include:
- Fraud detection & risk prevention: Storing insurance data on a DLT could help eliminate common sources of fraud in the insurance industry. By storing insurance claim records permanent on a blockchain, insurance companies can easier identify suspicious behavior across the entire ecosystem. Although an enormous level of coordination among insurers is required, implementing blockchain into the system could be hugely beneficial in the long run.
- Property and Casualty insurance (P&S insurance): Compared to traditional claim procedures e.g. car accidents, property damages are harder to evaluate and have a complete different process for claims handling. In a car accident the procedure is clear: submit a claim to your insurance company. The insurer examines the claim, and then recover the claim for the at-fault driver’s insurance company. The problem with P&S insurance claim is gathering the necessary data to evaluate and process claims. Tracking physical assets on a distributed ledger technology can automate claims processing through smart contracts. Thus, process claims can be faster and cheaper than in the traditional way.
- Reinsurance: In order to protect insurers from a large number of claims coming at the same time(e.g. natural disasters), reinsurance is used. With the current reinsurance process, each risk in a contract is individually underwritten and contracts take a while till both parties agree to sign it. As this is very inefficient and complicated, using smart contracts, reinsurances can be secured and the flow of information and payments between insurers and reinsurers simplified.
8. Cyber security
As the internet grows each day, the demand for a secure web and protection against hackers increases. Implementing blockchain in the cyber security industry would solve traditional tech problems websites have to deal with every day.
- no single point of failure: The ledger is distributed between many servers (nodes), therefore any system that implements blockchain technology becomes resilient to single point of failure and DDoS attacks by default, since hackers would need to attack more nodes at the same time which is nearly impossible.
- efficiency: Furthermore, the blockchain eliminates the need for middleman making it more efficient than many legacy systems and cyber security companies.
- Anti-tampering: Even though the blockchain ledger is public, the data is verified and encrypted using advanced cryptography. As the structure grows, the data is less pron to be hacked or changed without authorization.
- Zero proof knowledge: Zero proof knowledge allows identifying a person without having to store their personal data. With this concept, hackers will never find sensitive information, even if the hack was successful.
7. Internet of Things (IoT)
Whether it's self-driving cars or smart fridges, the concept of an IoT connected world has been around since the early 19es. Couple decades later we are witnessing the slow rise of the IoT industry with amazon, IBM, bosch and other tech giants leading the space. A distributed ledger technology could take the industry to the next level. Having a decentralized network of IoT devices that operate like a public ledger would eliminate the need for a central location to handle communications between them. Devices could communicate directly, update software, manage bugs and monitor energy usage. This would make our daily life much simpler as the devices would take care of our daily tasks like grocery shopping, driving, cleaning up the house and so on.
When it comes to voting, trust plays a key role. Currently, voters rely on tellers to honestly process their vote. But since government is known for bribing tellers, its time to question the own governments honesty. By having a immutable,publicly-viewable ledger of recorded votes elections would be more fair and democratic. Some other advantages DLT could bring is:
- time saving: during the election day, voters often have to wait hours before being able to vote. Voting online would reduce the voting process tremendously.
- vote counting: Tellers have to process votes manually. This is very time consuming as each vote is processed individually. By being able to vote online, a program could process votes automatically. This system would be more efficient and time saving.
- no corruption: Since blockchain removes the need for middle man, voting can be more transparent.
Education needs to be digitized, that's a fact. Looking on how education has changed in last decades, it is quite shocking that no real progress has been made. We still use still outdated methods to educate the future generations. Whether you want to store, track and process student's data, build partnership platforms between students and teachers to have easier communication or using a DLT to control dispersal of copyrighted material across the internet, blockchain and distributed technologies are the perfect technology to fill the market niche.
4. Government Administration
Governments are progressively becoming more open implementing blockchain technology in the administration sector. They rely on old systems which are associated with high maintenance costs, unnecessary complexity, large bureaucracy and other cons. The main benefits of
applying blockchain technology into government system are:
- reduction of different kinds of costs such as maintenance and economic costs
- information can be exchanged using a DLT without using papers which will increase security and reduce bureaucracy
- prone to corruption is unlikely, as blockchain allows more transparency
- automation of governmental processes with the help of smart contracts
- increased automation, transparency, auditability and accountability of information in governmental registries for the benefit of citizens.
Healthcare plays a main role in every country. Unfortunately, not everybody has the privilege to live in a country with a good healthcare system. One of the reasons why africa and other countries failed at healthcare is a bad developed infrastructure. The medicine programs are very outdated and have big security risks. Exploits can lead to fraud claimers. Using a global blockchain that contains data of each patient's history and prescriptions can eliminate fraud claimers. Moreover, at the same time fraudulent drug dealers can be avoided. Given the transparency blockchain has to offer, pharmaceutical companies can just look up the database if the numbers stack up. Thus, in case numbers don't match, fraud is easily detected. Furthermore, DApps enable empowerment of patients by allowing them to participate in telemedicine without paying for a middleman costs.
2. Supply chain management
Supply chain management can be applied in different sectors such as eCommerce or especially food industry. The main question arises: "Where has my product already been?". Especially in the 21st sentury, where more people attach great importance to buy fair-traded goods and services, a decentralized blockchain-based solution to monitor supply chain is the right answer. Using a public ledger where goods are securely monitored and tracked bring a lot of pros with it:
- reduction of time-delays and human mistakes.
- verify authenticity or fair trade status of products by tracking them from their origin
- transparency, as middle man are not necessary
1. Banking and Payments
You may already have heard of the phrase "Long Bitcoin, Short the bankers". To understand it's meaning, we have to understand why Bitcoin was created. The 2008 financial crisis has shown, that banks and government can't be trusted. After the financial crisis, the government used tax money to bailout banks from going bankrupt. Satoshi Nakamoto, the bitcoin founder(s?) came up with Bitcoin as an alternative monetary system that does not rely on third parties like banks. The Bitcoin creation has brought many advantages compared to traditional banking like:
- protection of inflation: The crisis of venezuela is a great example showing why money needs to be decentralized. Inflation is eating our savings account alive. Bitcoin offers the solution by having a limited supply of 21 million and nobody is having the control over it.
- moneys people: As of right now, 4 BILLION people are shut down from the world economy. Either they are not allowed or can't afford having a bank account. Bitcoin solves this. Download a bitcoin wallet and you are part of the financial infrastructure.
- you are your own bank: Leaving money on a bank is a high risk as the money can be gone within seconds. Bank goes bankrupt? You lose your money. ATM is not working? You lose your money. Financial crisis happens? You lose your money. Bitcoin offers the unique possibility to be your own bank. This comes with a great risk as you are responsible for your money. If you lose your private key, your funds are gone forever
- instant cheap peer-to-peer payments: blockchain allows peer to peer payments without any middle man. Compared to SWIFT-transfers which can take up to one week and are associated with large fees, cryptocurrencies enable instant money transfer with very low fees.
- anti money laundering: Often it is said that Bitcoin is used for money laundering, which is a myth. As the blockchain ledger is public and visible to anybody, with so-called "blockchain analytic tools" every transaction can be traced backed to the owner of the wallet. In this way, governments can use the blockchain to prevent terrorist financing.
Thank you for reading! Do you agree with my top 10 list? Let me know down below :)