Industry Sectors That Have Adopted Blockchain Technology

Blockchain was propelled into prominence with Bitcoin's rise as a cryptocurrency based on distributed ledger technology. Blockchain technology can trace its roots back to Merkle Tree from the 1980s-1990s with Stuart Haber and W. Scott Stornetta's work; their system relied upon cryptographically secure blocks so no one could alter timestamps of documents and alter timestamps without their authorization.

A Peer-to-Peer Electronic Cash System" became viral, its impact could only intensify. Unfortunately, Bitcoin became synonymous with blockchain technology, and applications outside the financial and digital currency sectors were relatively unheard of just now. Blockchain technology may still be in its early days, yet its application spans multiple sectors - including digital currency.

This article highlights how Blockchain can be implemented across industries. Please read it, then contact us for further details or feedback.

Distributed Ledger Technology (DLT), Blockchain Technology and Blockchain Networks are Used in Various Industries

Financial Services and Banking.
Healthcare Technology.
You can also get Insurance.
Cybersecurity.
Supply Chain Management.
Transport and Mobility.
Enjoy the Entertainment.
Information and Communication Technology.
Energy and Infrastructure.

Start with finance and banking, the two most often discussed industries.

Financial Services and Banking

Blockchain offers several benefits in the financial and banking industries, including increased transparency, enhanced security and accurate record keeping. As such, it makes an ideal solution for anti-money laundering purposes such as client onboarding or fraud prevention. Blockchain's transparency allows better monitoring while its traceability offers improved oversight - plus faster analysis due to being digital.

Thirdly, sharing distributed ledgers with regulators would reduce reports while helping identify risks faster and automate procedures more quickly - leading to reduced costs and quicker decision-making times. Blockchain will play a vital role here.

Why have these applications suddenly surfaced on so many websites? What new information can I learn by reading this article? Introducing RegTech (Regulated Technology). While RegTech has existed for some time, only some understand its existence or use.

RegTech is the Regulator of Technology

RegTech refers to applying new technologies within the financial industry to meet regulatory requirements, particularly risk management, compliance monitoring, transaction tracking and transparency enhancement using Blockchain or cryptocurrency solutions. Its primary function is regulatory requirements compliance monitoring for risk, compliance management and transaction monitoring purposes.

The Big Problem

RegTech emerged after the 2008 global financial crisis. This crisis had numerous ramifications, such as an almost 492% increase in supervision regulations between 2008-2015; fines levied against large banks increased 45 times between 2009 and 2014. Financial institutions must now comply with control system requirements designed to combat fraud and protect user data security.

Financial sanctions resulting from inadequate regulation implementation cannot be avoided despite significant expenses on implementation; since 2008's global financial crisis, only the U.S. has fined banks more than this amount in fines alone.

Banks spend an estimated annual approx $70 billion on regulatory compliance costs, so RegTech provides ways to cut expenses while improving quality and efficiency significantly.

RegTech Benefits

RegTech can bring many advantages, from improving data processing through business intelligence software to streamlining risk analysis and detection processes.
Future results could include technology-enabled processes, data aggregation and sharing, real-time monitoring with anomaly detection capabilities or Blockchain platforms that promote compliance.
RegTech has experienced exponential growth due to the stringent regulations applied by financial institutions. New technologies can reduce human error costs, storing of data costs, adapting regulations costs, as well as fraud and penalties significantly.
Banks and financial institutions can utilize Blockchain's features - its ledger and smart contracts in particular - to address problems within their institutions, as it offers transparent distributed ledger technology and public/private networks for use.

Healthcare Technology

Healthcare technology shares many similarities with emerging technologies in other sectors; therefore, blockchain healthcare applications could reach approx $5.61 Billion by 2025! We owe it all to Blockchain for solving urgent issues costing billions annually across industries that use this revolutionary solution.

This section of our article will focus on healthcare industry challenges and ways Blockchain could provide solutions.

Urgent Healthcare Problems

Lacking a universal system for patient identification and records management is one of the key challenges. Why does this matter? Mismatches between EHRs (Electronic Health Records) and Digital Personal Medical Records could occur.

Statistics reveal that up to half of patient medical records don't match when transferred between systems; even within one system, one of every five records may be less than 100% accurate.

Between 2009 and 2018, an estimated total of over approx 176 Million patient records have been exposed due to breaches in data security, such as banking or genomic testing records being exposed or stolen. Healthcare breaches increased 44.4% month over month during October 2019 (over 600 000 records exposed or stolen); unfortunately, a paper system would likely have provided better protection, but with so much new information emerging each day, this is impossible to keep track of securely.

Insurance fraud is another significant problem plaguing the healthcare industry, affecting unnecessary treatments, illegal medication prescriptions and false claims for corruption. Medical fraud costs the U.S. economy approximately $68 billion yearly; the figure recovered so far was approx $5.7 Billion by government authorities, but this only accounts for part of it all.

Illegal drug sales represent a serious challenge to healthcare organizations worldwide. According to estimates by the Health Research Funding Organization, approximately 10%-30% of drugs sold in developing nations may be counterfeit medicines; an even bigger issue lies with them having incorrect ingredients (16% and inadequate amounts of components 17%) because counterfeit medicine could cost approx $200 billion every year for pharmaceutical firms worldwide alone.

Healthcare Blockchain: Solutions for Healthcare

Research estimates that Blockchain companies could save healthcare sectors at least approx $100 billion per year by 2025 due to cost savings associated with data breaches, I.T. operations and personnel support functions, and frauds or counterfeits in insurance policies or healthcare services.

Blockchain technology enables pharmaceutical companies to track pharmaceutical drugs throughout their supply chains more easily, making theft harder for thieves and faster detection of irregularities. Our data remains safe, transparent and up-to-date, allowing faster detection of fraudulent insurance claims and mitigating future fraud cases.

Estonia was among the early innovators of Blockchain technology. Their electronic medical record system integrates data from other sectors. At the same time, healthcare uses Blockchain solutions, making Estonia one of the pioneers of this revolutionary solution.

Blockchain technology enhances data, system logs and integrity protection. The United Arab Emirates is another leader using this method for secure management, employing it, e.g. for tracking licenses of healthcare professionals through blockchain technology.

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The Insurance Sector: Problems

As the insurance industry expands rapidly, new challenges emerge. Blockchain could offer insurance firms help in terms of fraud detection and underwriting reduction and cyber insurance policy improvement.

By 2023, the global blockchain market for Insurance may reach approx $1.39 Billion and promises reinsurance companies to save up to approx $10 Billion while helping reduce risks by improving information sharing and automating processes - no wonder why 66% of insurance executives consider DLT essential in maintaining a competitive edge for their company!

Insurance Fraud Activities

Insurance fraud remains a top challenge to this industry despite best efforts at its control, especially given that costs remain such an enormous factor; over 7 000 insurance companies collectively collect premiums worth over approx $1 trillion every year, and this vast market provides opportunities for illegal acts worth approx $40 billion per year that cannot be easily detected using conventional methods of detection.

Underwriting

Underwriting processes nowadays rely heavily on paper record-keeping with few online applications or tracking tools available; this leads to high costs, disputes and record management difficulties, which affect both underwriters as well as their clients.

Cyber Insurance

Cyber insurance policies are relatively new offerings designed to cover costs related to hacking, cyberattacks and data breaches.

Ransomware attacks continue to rise yearly; during the first three months of 2019, 105% more ransomware attacks were seen than during this same time frame in 2018, with hackers demanding an average ransom payment of approx $224,871 per incident to unlock data.

Blockchain Technology is a Potential Solution for the Insurance Industry

Blockchain technology enables faster and safer information storage across all parties within the insurance industry, creating an additional trust layer to facilitate transactions more safely while building stronger bonds between parties. More market-specific products can be developed thanks to Blockchain's use in product creation processes.

Insurance is an increasingly competitive market where customers search for value. Blockchain can bring greater efficiency and transparency into asset management firms while cutting costs significantly.

Implementing blockchain solutions can reduce fraud while enabling real-time information sharing between parties.

Smart contracts could save P&C insurance companies over approx $200B annually in operating costs and lower their operating ratio by 5-13 percentage points. Furthermore, smart contracts could automate record keeping regarding agreements, transactions and valuable information gathering - although only very rarely is blockchain technology being applied within this sector.

Cybersecurity

Estimates suggest that, approximately 1.7 MB per person and a second of data will be created; that amounts to more than 2.5 quintillion bits a day! However, given its widespread storage capabilities, data and information could easily become vulnerable to security breaches.

Estimations suggest that human error accounts for 95% of security breaches. In comparison, other sources include hacking (45%), phishing (22%), ransomware (17%) and malware (17%) are also significant sources. Ransomware costs companies an estimated annual recovery cost of over approx $75 billion.

Cybersecurity: What You Need to Know

Internet and digital technologies have become essential parts of modern business operations. At the same time, their introduction through 5G networks has enhanced speed significantly, benefitting both businesses and consumers alike. On the downside, however, such higher speeds present serious cybersecurity threats, which were highlighted in an Oxford University Press Journal of Cybersecurity article published recently.

At present, businesses face several significant cybersecurity problems that include the inability to detect threats, inexperienced employees and breaches caused by remote work, human error or targeted ransomware; the slow implementation of security patches; and the lack of attention paid to this issue is seen primarily as I.T. problem and not a financial problem.

Cyber security is a top concern of SMEs and large organizations that invest countless resources to protect themselves from online attacks. Blockchain technology can provide crucial support in these situations for cybersecurity purposes.

Read More: What is Blockchain Technology and its Benefits in 2023?

What Role Can Blockchain Technology Play in Cybersecurity?

Blockchain technology provides a natural security system due to its consensus-driven framework and breach-resistant principles such as decentralization and trustlessness. Automating data storage solutions like Blockchain storage solutions can also address cyber security's primary concern: human error.

Blockchain solutions utilize nodes that utilize automatic comparison mechanisms and flag incorrect or out-of-place information, blocking hackers' ability to manipulate it through distribution methods.

Now it is possible to counter hackers through blockchain technology by decentralizing digital assets and security infrastructure - for instance, by decentralizing DNS entries that could prevent DDoS attacks.

Blockchain technology provides an efficient means to verify security patches, firmware upgrades and installers before their execution - protecting systems against unwitting malware or threats that have entered through unintended channels. Blockchain and encryption techniques for validating access will further prevent unauthorized ingress into system processes, eliminating unauthorized ingress into your network. Blockchain services could help identify your company's specific security needs while helping address them accordingly.

Supply Chain Management

Supply chain management can be an arduous, uphill task requiring big data and insight. Paper record keeping is still prevalent within maritime supply chains that make up much of international supply chains - digital transformation in this space remains key for supply chain managers to remain effective and efficient.

Businesses operating within this sector have endured huge financial losses due to supply chain disruptions brought about by the COVID-19 pandemic, as reported by many global firms such as McKinsey, Deloitte, EY and others. Yet this also presents a tremendous opportunity.

Supply Chain Problems: Current Major Issues

Supply chain management (SCM) is currently experiencing major data exchange and storage bottlenecks, particularly among small suppliers and rigid employees in its operation process. Security remains an obstacle to digitalization adoption despite significant losses experienced by various industry stakeholders due to delays, lost paperwork documents and corruption. These represent major obstacles that must be surmounted before going digital can benefit businesses.

Reports also revealed other issues concerning Supply Chain Management, such as cyber security threats, rising tariffs and transaction costs, delays with cash flows, etc. Furthermore, monitoring supply changes closely and eliminating redundancies were all discussed within these same reports.

Blockchain technology remains one of the least-utilized approaches for solving issues, which indicates an overall need for more awareness regarding SCM blockchain applications and their benefits.

Supply Chain Problems can be Solved Using Blockchain Technology.

Blockchain technology is being leveraged in SCM supply chains to create smart contracts - the initial application. By improving efficiency, transparency, and security in supply chain transactions facilitated using this new form of digital currency - its positive ramifications would become even greater in international transactions.

Second, blockchain applications could enhance information sharing and security. Storing data on blockchain solutions provides high security while making access easy - as any attempt at changing stored information without incurring consequences would likely fail.

Blockchain technology offers Supply Chain Management solutions that enhance traceability, documentation requirements for transportation (waybills and bills of lading), fraud reduction, delay management and cost savings. At the same time, its trustless aspect addresses issues of trust between stakeholders in SCM transactions.

Blockchain technology holds great promise to address the problems encountered in supply chain management (SCM) and increase profitability for current business models.

Transport and Mobility

COVID-19's unprecedented effects have immensely affected the transportation and mobility industries, possibly one of the worst-affected sectors. The crisis has profoundly transformed people's travel habits; in Europe, cars remain the predominant form of transport while the shared mobility market is expanding quickly - it may reach $751 billion by 2030!

Recent trends and issues related to supply chains and logistics industries are changing quickly, presenting us with several challenges and issues, many overlapping between sectors and worth discussing briefly.

Blockchain can help Solve Current Issues in Transportation and Mobility.

Autonomous mobility trends are increasing rapidly and require communication among vehicles in an interdependent system. Security threats for these vehicles exist, and Blockchain can provide them with protection through encryption that would be nearly impossible for intruders to breach.

Recording mileage has become more urgent due to several high-profile instances of odometer tampering. Smart odometers utilizing Blockchain and GPS offer a solution by storing GPS data securely within an autonomous distributed blockchain network.

Sharing transportation requires direct two-person interactions without third-party intervention (I2I). Blockchain solutions offer one such form of interaction among connected vehicles or devices.

As discussed in our section on Insurance, Blockchain plays an integral part in auto insurance. A vehicle information network built using this technology would prove just as advantageous.

Enjoy the Entertainment

Entertainment was among those industries most transformed by COVID-19 Pandemic's rapid shift toward digital technology, reaching almost approx $30 billion globally by 2022 and creating both opportunities and challenges in its rapid growth - such as technological progress, digitization, personalized marketing strategies targeting certain demographic groups or generational differences as well as pandemic outbreaks.

Entertainment industry problems today resemble those from before the pandemic, only on an even greater scale. Although Blockchain has already made inroads into the entertainment industry, more adoption opportunities remain.

The Entertainment Industry: Challenges

Cyber security poses a grave risk to the entertainment industry. With digital distribution expanding exponentially, so has the demand for uninterrupted services with safeguards protecting intellectual property rights, member transactions and member privacy.

Content piracy has become an issue within the entertainment industry since the digital transformation and the high costs associated with streaming and storing content via platforms like Netflix or Amazon Prime. Examine various possible solutions for these problems.

Read More: 5 Ways That Blockchain Technology Is Changing the Business World

Blockchain Technology: What is it?

Smart contracts and distributed ledger technologies have already been successfully leveraged with blockchain technology to achieve a more equitable content distribution for all stakeholders. Revenue can then be automatically allocated based on a contractual agreement. 2021 saw blockchain startups in T.V./Film industries seeing a funding increase of 713 per cent year over year to approx $25.2 billion investment. This trend should only increase further over time.

Decentralized media libraries using blockchain technology have begun to make an appearance. Many larger corporations have acquired startups using the tech; Spotify acquired the media chain as one example.

Blockchain technology could also play a pivotal role in gaming by providing more transparent rewards distribution and competition. Cryptocurrencies have seen rapid adoption within betting shops. Blockchain has played an instrumental role in developing NFTs, Metaverses and digital assets.

Information and Communication Technology

As is true for every other technology revolution, ICT's introduction transformed every facet of society and business - its impact can only increase with each passing year, reaching a approx $5.5 trillion global market valuation by 2022.

Following the COVID-19 pandemic, fast ICT adoption across various industries led to trends like remote working becoming widespread across industries. As part of the COVID-19 pandemic's aftermath, rapid adoption led to certain trends, such as prevalent remote work among various sectors.

Business and government entities are creating roadmaps or digital strategies to chart their nation's course for the coming decade. Now, let us examine some of the major concerns in the ICT sector today.

ICT Industry: Current Concerns

The International Telecommunication Union reports that ICT sector stakeholders are concerned with carbon emissions. While technological efficiency improvements have helped mitigate carbon emission rates, additional hardware and software interventions will still be required as individuals and organizations seek to expand computing/storage capacities; large organizations with spare capacity could offer access to individuals or other organizations to share computing/storage capabilities that benefit both themselves as well as their environment.

ICT services providers must also uphold privacy and security for users' data. With IoT technology increasingly deployed across industries, addressing security concerns has never been more pressing. Businesses offering ICT services are also responsible for safeguarding users needing more technical experience to provide these services to consumers.

Blockchain can be Used to Help

ICT professionals currently face many significant problems; blockchain-based apps provide one solution. Decentralized blockchain cloud solutions enable organizations to share idle resources or surpluses with others for rewards; this may take the form of either public or private ledger systems and allows a mutual sharing of resources across a network of devices.

This solution could provide many advantages, such as increased transparency, wider coverage of services and resources, lower maintenance costs, less network congestion, fewer environmental impacts, and reduced costs.

Distributed ledger technology solves ICT security concerns by decentralized hosting data across nodes - meaning nobody can hack in and alter any records; no government or organization can censor content!

Blockchain can also play a vital role in sustainability by increasing energy efficiency and optimizing utilization, helping reduce ICT sector carbon emissions. Indeed, the European Union's digital strategy heavily emphasizes using blockchains for climate change mitigation.

Energy and Infrastructure

Governments around the globe prioritize providing access to clean and affordable energy resources as an integral component of development. Around 80 per cent of public research funding goes towards low-carbon technology research & development efforts - and its use continues to rise rapidly. Global energy consumption fell during the COVID-19 epidemic in 2020. Still, it rebounded rapidly a few months later by rising an astounding five per cent!

Recent trends in infrastructure investment show an estimated deficit of approx $15 trillion - or 0.5% of GDP - representing nearly one-fifth of investment funds worldwide. At the same time, gaps can differ by region and even subregions. Below is an interactive source map that showcases these disparate investment gaps.

There are numerous challenges facing global energy and infrastructure sectors beyond investments; we will discuss some briefly here.

The challenges that Must be Faced

Energy Sector

Energy systems are transitioning, becoming increasingly digitized and decentralized over time. Governments and businesses must increase exploration, consideration, and adoption of distributed technology solutions to keep pace.

Emerging ICT technologies are adding significant value to energy markets, especially through concepts like smart grids and meters, as well as prosumers who gain significant traction in this space. Our ICT section addresses any concerns related to control, trading, customer service or resource sharing arising from these innovations.

Infrastructure Sector

There remains an overwhelming gap between investments necessary to maintain global immensely impact governments around the globe.

Infrastructure can immensely impact the environment, sustainability, poverty and economy. Infrastructure investments may include increasing power production capacity or upgrading telecom networks or sanitation and rail infrastructure - even increasing water supplies to homes or supplying municipal water facilities with sufficient supplies of potable water for consumption.

Blockchain Technology is a Great Way To Use Solutions

The Energy Sector: Blockchain Technology

Blockchain solutions hold great potential to disrupt energy markets. Here are a few solutions in use today in this sector of industry.

Automating distributed consumer and generator billing could be more streamlined with smart meters or blockchain-based solutions like smart contracts. Blockchain Trading Platforms may advance wholesale energy markets and commodity trading activities while improving risk management and forecasting capabilities.

Grid Management

Blockchain solutions offer many practical advantages to grid managers for managing and storing their data securely while supporting interactions among entities, providing interoperability between entities, and protecting transmissions of sensitive information. Blockchain technology has proven helpful for sharing charging solutions for electric vehicles and future mobility solutions.

Marketing and Sales

Utilizing A.I. with machine learning and Blockchain can enhance marketing and sales by helping companies adapt more easily to individual consumption patterns while protecting user privacy via blockchain technology.

The Blockchain Technology for the Infrastructure Sector

Blockchain technology could immediately affect infrastructure, contributing to factors that contribute to global infrastructure development. We've explored some of these contributing factors, such as supply chains, financial services and insurance products which help enhance this development of infrastructure growth.

What can you do to Improve your Business?

Globally, blockchain technology is being widely adopted across industries and professions. Blockchain tech can be found everywhere, from financial to legal industries.

Expectedly, more blockchain solutions will enter the market. This trend is especially prevalent for new blockchain startups. Therefore, your business must assess where Blockchain could provide benefits as soon as possible.