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The Big Industries That Can Be Transformed By Blockchain


Nick James

Blockchain technology, which originated as the foundation for cryptocurrencies like Bitcoin and can now be used across a wide range of businesses, is simply a virtual ledger capable of recording and validating large volumes of digital transactions.

Despite slipping from a record high in 2018, annual financing to blockchain startups has more than quadrupled since 2017 compared to its origins in banking and cryptocurrencies. Because of the success of Bitcoin, blockchain's potential for use outside of finance has been clear to investors and entrepreneurs alike. One of the examples of this is the gambling industry. There are various gaming providers like Spinomenal and Habanero that enable their clients to play crypto slots at Winz.io casino based on blockchain technology allowing consumers to safeguard their sensitive data and information to the greatest extent possible. Transparent, verifiable registers of transaction data have nearly limitless applications, thanks to blockchains' decentralized foundation, which eliminates the need for central oversight and makes them impervious to fraud.

So what are some of the biggest industries that can be transformed by blockchain technology?

Financial Services

The future of blockchain and finance is bright. To put it another way, banks are the value storage and transmission centers. Because they are digital, secure, and unchangeable ledgers, blockchains have the potential to improve the accuracy of financial transactions and the exchange of information within the financial services industry. Through the disintermediation of core bank services, such as payments, clearing, and settlement, blockchain has the potential to upend the $5T+ banking sector as we know it. Financing cross-border transactions generate $224 billion in payments income for banks each year. Instead of relying on third parties for verification, blockchain technology allows users to transmit payments securely and cheaply while also cutting down on processing times compared to conventional bank transfers.

Recently, new blockchain-focused firms are attempting to automate and safeguard the stock trading process in a way that hasn't been possible with any previous solution. This indicates that the stock market and financial markets, in general, will be more appealing to investors if blockchain technology is used. There is a natural match with blockchain capabilities in the crowdfunding business, which evolved to "disintermediate" capital creation by allowing supporters (also known as "pledgers") or individual investors to directly finance artists and entrepreneurs.

Entertainment

Content producers are employing smart contracts, which are based on blockchain technology, to distribute money from the sale of creative work according to predetermined license agreements. By decentralizing video encoding, storage, and delivery, blockchain has the potential to significantly cut video traffic costs. Netflix, YouTube, and the whole of the video-distribution industry may be affected.

In recent years, online gaming has evolved into a competitive sport with highly sought-after titles, substantial monetary payouts, and even a black market. Game players now have an equal opportunity to compete, earn rewards, and trade assets across digital worlds thanks to blockchain technology. Digital tokens may be safely traded for cryptocurrency on the blockchain without the involvement of a third party.

It's no secret that the online gambling industry has grown rapidly in the last several years. However, many of its fundamental problems remain unresolved, chief among them being the enormous transparency gap. Because records on the ledger cannot be falsified, "the house always wins," as the saying goes, is a thing of the past. Some websites are based on the concept of "trustless betting," in which trust is not required since the system is decentralized. Decentralization provides a certain amount of privacy for gamblers, which is critical. For hackers, sites that demand a lot of paperwork or proof deter individuals from participating in the game. By using blockchain and tokenization, the art market will be more accessible to buyers all over the world, while also saving money on transaction fees. The usage of nonfungible tokens, or NFTs, is becoming more common in the digital art industry.

Travel And Mobility

A good example of how blockchain technology may be used to monitor ownership using a tamper-proof, impartial, and robust system is the recording of tangible assets, such as vehicle components. Instead of relying on paper documents, which may be falsified or destroyed due to age or misuse, and centralized databases that can be breached or corrupted due to human mistakes or manipulation, blockchains provide an audit trail that cannot be altered.

The usage of blockchains might be put to good use in tracking down and eliminating fake components from a supply chain. The technology will also have a significant impact on vehicle recalls, which accounted for 13 million in the first half of 2020 alone. By keeping track of where components have been all the way from the manufacturer to a specific car, blockchain might help with targeted recalls in the future.

There is a coalition led by Ford, BMW, Honda, and General Motors (GM) called the Mobility Open Blockchain Program (MOBI) that has been working on a vehicle and components tracking initiative since 2015. When it comes to vehicle registration and maintenance history, the Vehicle Identity (VID) Standard offers "birth certificates" that may be traced across borders.


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