The diverse real-world use cases of blockchain technology bring us to the question – Why is blockchain popular?
Although the technology is difficult to comprehend, it is certainly one of the greatest innovations to date.
As more and more companies are realizing the impact of blockchain in business, its demand has been soaring high.
Before we begin unwrapping its usefulness and future potential, let’s have a brief idea of the technology first.
What is Blockchain Technology?
It is a decentralized digital ledger where all your data and transaction records are stored safely.
These data are individually encrypted meaning any change, copy, deletion, or hacking of data from the system becomes impossible.
Hence, for businesses, Blockchain serves as a secure and safe network to track and trade valuable assets.
Why is Blockchain Popular?
The primary reason behind the hype of this technology in the market is – security.
Though several attempts have been made in the past to digitize money, most failed to establish the trust and security a business needs.
Then came the Blockchain – a revolutionary technology that facilitates secure and anonymous peer-to-peer connection over a decentralized network.
Most importantly, by maintaining a tamper-proof digital public ledger, Blockchain eliminates the need for an intermediary or central authority.
In the initial phase, implementation of Blockchain was mostly observed in MNCs such as IBM, Microsoft, etc.
And, it was still incomprehensible on the common mass level. However, a new chapter was unveiled when Blockchain and Cryptocurrency came together.
Digital currencies like Bitcoin came into existence only because of Blockchain.
The reasons behind Blockchain popularity, especially in Cryptocurrency, are manifold. Some of its key advantages are:
- Secure transfer or transactions of digital currencies that are end-to-end encrypted
- Frees you from banking fees or charges and limitations on larger transactions
- Superfast and efficient transaction process with no “middleman” or central banks
- Easy and improved access to all digital records of asset transfers and transactions
- Seamless trading in the international market by helping you get rid of levies, transaction charges, etc.
- Unlike banks, there is no third-party control over your funds. You control your own assets and money
Apart from its importance in Cryptocurrency, this virtual ledger holds tremendous potential to change the future of business.
Why is Blockchain Important for Business?
Blockchain has already set its footprints in industries like automotive, banking, finance, healthcare, supply chain, media, travel, and telecommunications.
Most importantly, its superior level of accuracy in data keeping and verifying is the key driving factor behind its growing popularity in these sectors.
The industrial applications of Blockchain have helped us get introduced to the real power and capability of this technology.
The following examples of use cases of this technology in the real world are proof of its significance in business.
1. Supply Chain Management
Supply chain management demands efficient collaboration, seamless operations, and most importantly, a trusted network.
Blockchain offers a secure and error-free transactional environment as well as ensures transparency in the network.
Thus, it improves coordination across the chain of producers, suppliers, logistics service providers, banks, and retailers.
Further, it infuses resiliency and visibility across the network of stakeholders in the supply chain.
2. Automotive Industry
The business ecosystem in the automotive industry revolves around a network of data, transactions, and information. And, Blockchain ensures there is absolute efficiency in the business process.
Firstly, it safely stores every single piece of information related to cars, hardware, ownership, and history of car usage.
Secondly, this data becomes easily accessible to customers, manufacturers, parts suppliers, and safety regulators.
Lastly, it assures safe and secure transactions and ownership payments.
3. Banking and Finance
Banking and finance are the storehouses of critical information and data.
Blockchain has improved customer service with better infrastructure, systematic record-keeping, easy payments, and improved security.
Clearly, no other sector has benefited the way banking and finance have from Blockchain technology.
So, it is clear that the future of blockchain technologies in financial markets and banking is quite permanent.
4. Healthcare Industry
Blockchain also brought a great impact on healthcare by streamlining the management of patient records, health profiles, track of past illnesses, hospital billings, and so on.
Further, with the application of blockchain, supply chain management of healthcare equipment and medicines has also become easy.
The telecom industry has also gained immensely from blockchain technology. How?
It enhances data immutability, identity management, theft prevention, and SLA monitoring.
Furthermore, it also provides easy management of partner settlements of roaming networks among the telecom service providers.
6. Travel and Tourism
Blockchain technology allows the travel industry to serve customers with better service and communication.
Particularly, the tourism sector made the most of it and is helping enthusiastic travelers with hassle-free flight and hotel bookings online.
Apart from all these sectors, gaming, media & entertainment, and advertising are some other fields that leverage blockchain to perform better.
Why Blockchain is Here to Stay?
Blockchain is, indeed, a boon to those business verticals that lacked accountability earlier.
For instance, in gaming, Blockchain solves the problems of in-game purchases, security, verifiability, and digital asset transactions.
In addition to this, Blockchain opens great opportunities for digital creators. It prevents wastage of resources, time, and money by facilitating the easy and secure sale of digital assets (NFTs).
By providing an extraordinary exchange platform, Blockchain is expected to move the NFT market to a new horizon.
Further, the use of Blockchain in IoT and Metaverse is a sign that this pioneering technology has a long road ahead across various industries.
Summing it up
The benefits that blockchain provides and a multitude of use cases are evidence of the fact that blockchain is going to dominate the world in the upcoming years.
The need for safeguarding asset ownership and providing transparency in business operations explains the question of why blockchain is popular.
To conclude, the capability of blockchain to create a secure environment for data storage will make it a mainstream technology in businesses soon.
Need a blockchain-based application for your business? Feel free to contact Webgen Technologies to discuss your project.
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