With majority of companies being stuck in the exploration phase, Blockchain has a big potential of transforming operation models of multiple industries. Blockchain technology is rapidly booming in Financial Services sector and IDC predicts that at least 25% of the global banks will incorporate Blockchain in their operations by 2019. However, it is not only the financial sector that Blockchain is set to disrupt; manufacturing, healthcare, retail, telecom, government, and education will also see rapid evolution and acceptance of this technology.
According to the World Economic Forum, investing on Blockchain startups is estimated at US$1.4B in the past 3 years. The emergence of multiple Blockchain platforms through companies and start-ups such as Private (e.g. Multichain) or Consortium (e.g. HyperLedger) or Public (e.g. Ethereum) is providing organizations at different avenues to meet their requirements.
Financial companies are taking different approaches to adopt Blockchain by establishing Blockchain labs and developing in-house projects (e.g. Citibank developed Citicoin, BNY Mellon is backing up bank transactions with Blockchain).
Adoption of Blockchain has few challenges, which includes understanding and implementation of the technology, lack of standards and robust platforms. The applications to run on Blockchain is a future important aspect of Blockchain technology.
Blockchain Adoption by Different Industry Sectors
The potential of Blockchain technologies to grow across various domains can be illustrated with a few possible use cases as shown below:
- Financial Services – Features such as smart contracts, real-time transactions, digital currencies can impact on global remittance, fraud detection, banking experience etc.
- Manufacturing, Supply Chain – Goods inventory and product origin tracking, inventory, multi-party agreements could be implemented using smart contracts.
- Healthcare – Smart contracts can implement automated claim processing. Digital identification can enhance patient records privacy. Medicinal inventory trafficking could be trusted to eliminate fraud.
- Telecom and Communication- Distributed cloud storage, billing systems automation and call detail record verification are different functionalities that can be implemented.
- Internet of Things – Blockchain technology would enable automation, decentralization and secure transactions between IoT devices.
Advantage of Private Blockchain over Public blockchain