Though far from a mature technology, blockchain’s core characteristics of decentralization, transparency, immutability, and automation have found its use cases in the world of banking, finance, retail, and transport. Here are the key sectors where distributed ledgers are catching on first:
1. Financial services
Blockchain has unlocked game-changing digital transformations in the world of finance such as Central Bank Digital Currencies (CBDC) and decentralized finance (DeFi). It has enhanced overall efficiency of digitization of financial instruments, which experts say will lead to an increase in liquidity, lower cost of capital and reduced counter party risks.
2. Digital Identity
Blockchain identity management systems provide an integrated, and inter-operable infrastructure that makes data tamper-proof. Identity theft, inaccessibility or breach of data can all be prevented with blockchain-powered identity management platforms.
3. Energy and sustainability
The uses of blockchain in energy and sustainability are often overlooked. The main benefits of blockchain in the energy sector are cost reduction, meeting environmental sustainability goals and for stakeholders, an increase in transparency. Utility providers can also improve their efficiency by tracking their equipment and materials through the use of a chain of custody indelibly noted in a distributed ledger.
4. Insurance claims
A real-time traceable and trustable exchange of data between the various parties involved will significantly reduce incidences of fraud while simultaneously bringing about improved transparency, more efficiency, lower costs, faster payouts, and a reduced risk of insurance fraud.
5. Media and entertainment
The application of blockchain in media and entertainment has allowed artists to sell their work directly peer to peer, leapfrogging costly intermediaries. Blockchain–based platforms can safeguard artists’ original art works by controlling licensing and managing distribution so royalty payments are seamless and streamlined. Blockchain also has the ability to log data of media usage. This enables real-time, flexible, and transparent consumption-based pricing mechanisms that can enable micropayments.
The field of healthcare is plagued by counterfeit drug production. Blockchain technology can mitigate the possibilities of distribution or production of counterfeit drugs by securing the supply chain, enabling traceability, and maintaining a record of the composition of drugs, etc.. At the same time, distributed patient data will lead to more secure data management.
7. Govt. and Public sector
Legacy systems in the public sector are insecure and costly. By leveraging blockchain technology, governments can secure data, streamline and reduce labour intensive processes, reduce fraud or corruption and abuse while building trust and accountability at an accelerated pace.