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How Ground-Breaking Blockchain Technology is Helping Industries

Posted In Business - By Techtiplib on Tuesday, November 13th, 2018 With No Comments »

It is common knowledge that Blockchain is a disruptive technology that is slowly streamlining and simplifying most industry workings and business processes. But before going into details on how Blockchain has blended into traditional industries, it will be relevant to understand the nuances behind Blockchain.

Blockchain Technology

In Blockchain, a series of blocks is used to maintain a rapidly growing database and volumes of records. It is a chain where every block in it is time-stamped and linked to the previous block. Every Block added to the chain has to be validated with this whole database being closely supervised through a peer-to-peer network.

By its very structure, a Blockchain is resistant to modifications. Once a data is recorded, it cannot be altered retroactively without changing all subsequent blocks, thereby making it a very secure system. This high safety attribute has made Blockchain technology the much-preferred option today for recording events, processing transactions, maintaining medical, financial and land records and other record management activities.

There is a wide range of industry level applications of Blockchain. Given here are some of them in three traditional industries.

Supply Chain and Logistics

In Blockchain, a shared ledger can be used to register goods and commodities officially. This helps to remove all ambiguities and offers solutions to problems of transparency and traceability in logistics. It is very useful in monitoring and tracking products in transit from the original despatch point to its final destination, thereby going through the total supply chain process. Apart from this factor, Blockchain also authenticates products, ensuring that they are within the expected standards.

This technology can also be connected to IOT (Internet of Things) enabled devices to keep track of crucial functions like storage conditions and making sure that the goods are being handled well. Major companies like FedEx, Wal-Mart and British Airways have hired top Blockchain Consulting agencies to optimise their supply chain and logistics issues.

Insurance

The Insurance industry is highly susceptible to frauds and one of the solutions to avert such a possibility is to move records and information into a ledger that is both tamper-proof and immutable. It works well for the insurance companies as well as purchasers of their policies. Insurance sellers can quickly verify and authenticate data of their clients who can, in turn, verify through smart contracts on Blockchain whether the seller will provide the services as bought. The technology identifies suspicious behaviour and enables better coordination, thereby reducing the risk factors.

Integrating Blockchain technology in the Insurance industry also helps to reduce the quantum of premiums. Since all data stored in the Blockchain is safe, immutable, secured and transparent, there is a corresponding reduction in the possibility of frauds. This has a direct impact on the cost of premiums.

Banking

The very nature of Blockchain technology makes it ideal to be implemented in the Banking industry. Bitcoin and later all major cryptocurrencies have shown how this decentralised technology is safe and secure for all transactions of digital or fiat currency. Solutions offered by Blockchain Australia in the Banking sector have proved that this technology is the perfect fit for this industry. Time for transactions is dramatically reduced and a trade finance deal that would earlier take about seven to ten days to go through can be completed in less than a day. This has a cascading effect and decreases costs while leveraging information and security. Risks are minimal as unlike conventional banking channels, Blockchain has a decentralised ledger with no centralised vault.

It will be interesting to note some live examples of the use of Blockchain technology in industries.

The city of Teresina in Brazil has implemented this technology in their public transportation management. All information such as fulfilment of service orders and travel reports is made accessible to all. “Follow my vote”, a start-up is building an online voting platform that will ensure a higher degree of electoral transparency. Sony Global Education has partnered with IBM to develop a Blockchain educational platform which will securely store all students’ grades and relevant information.

Blockchain is a revolutionary technology and will surely be widely used in future across all industries.

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