By now you may have heard of Bitcoin, a decentralized digital currency, but chances are you haven’t heard about the technology behind it called blockchain. Blockchain is basically a public ledger that allows users to securely and automatically verify and record a high volume of transactions digitally.
Many have recognized the potential for blockchain to help companies securely manage large amounts of data and verify transactions instantly and without a central authority. A number of top financial institutions are already employing the technology to speed up transactions while at the same time cutting costs and lowering risks of fraud.
Beyond finance, there are plenty of use cases for transactions that need to be verified and organized by a decentralized platform. Here are 10 industries blockchain technology is about to Disrupt:
1. Cybersecurity
Blockchain uses advanced cryptographic techniques to verify and send data. The technology not only ensures that data received is from the correct sources, but that it also was received without any interceptions along the way. Should more businesses adopt this technology, we will most likely see a decrease in hacking.
2. Voting
Voting is an industry rife with the potential for voter fraud, and so far, no one has come up with a way to ensure votes are collected and tallied without tampering. Blockchain can authenticate voters’ identity, secure record keeping to track votes, and accurately and securely count the tallies to determine the winner.
3. Academia
A software skills program based in California announced it would be using blockchain technology to authenticate academic certificates. This would make it impossible for students to use accreditation they didn’t earn. Should more school adopt blockchain it would reduce fraud by making certificates, transcripts and diplomas transparent.
4. Online Music
In the near future you may pay Taylor Swift or Kayne West directly, cutting out the middleman. Not only would payments be made directly to artists but smart contracts would automatically solve any licensing issues. Cutting out the middleman also means more direct engagement with artists and fans.
5. Car Sales and Leasing
Many have dreamed of an easier, less-slick way of buying or leasing a car. Well blockchain may one day make that dream come true. Recently, Visa and DocuSign partnered on a new idea to stream car leasing. The goal is to turn a frustrating process into what they call a “click, sign, and drive” process.
6. Ride Sharing
Just when you were getting used to Uber, the app that totally disrupted ride sharing, blockchain comes along to turn what is basically a centralized service into a decentralized one. Instead of using a centralized network that must comply with regulations, use of blockchain technology could bypass all of this.
7. Stock Trading
Buying, selling, and trading stocks has never been an overtly easy process, but there are start-ups in this industry who believe blockchain can change this by automating and securing the process. TØ.com, a subsidiary of Overstock, wants to enable stock transactions online using blockchain tech. Overstock has already used the technology to issue private bonds, and the SEC has approved TØ.com to issue public bonds. Other startups are currently working with Nasdaq to enable the trading of shares in private companies through a blockchain.
8. Real estate
Sure, buying and selling property can be exciting, but it can also be a pain in the assets. But the lack of transparency during real estate transactions, the copious amounts of paperwork, public recording errors, and possible fraud, can be fixed through blockchain. Real estate blockchain applications can help record, track, and transfer land titles, property deeds, liens etc. as well as ensure the documents are accurate and verifiable.
9. Cloud storage
While cloud storage technology offers tremendous benefits, it definitely comes with risks. By using a centralized server, there is far more network vulnerability from attacks by hackers. Because of its decentralized nature, blockchain offers a safer cloud storage option and at a fraction of the cost.
10. Gift Cards and Loyalty Programs
Quick, what do you do when you suddenly remember it’s your kid’s teacher’s birthday? Get her a Starbucks gift card of course. Blockchain technology will soon help retailers be able to offer gift cards and loyalty programs that care cheaper and more secure while reducing fraud prevention.
Blockchain’s magic comes from its elimination of any kind of middleman. Maybe someday very soon, we’ll all wonder how we put up with middlemen for so long.