The rise of cryptocurrencies, which was boosted by the increased value of Bitcoin, also led to the popularization of blockchain – the innovative information recording system where data is stored in a way that is hard, or even impossible to change.
Bitcoin is a great example of how virtual currencies and blockchain technology can revolutionize an entire business area, and some say that it’s only the tip of the iceberg. In this article, we’ll be taking a look at some of the industries that are most likely to be disrupted by crypto:
Blockchain has the power to disrupt commercial banking systems by providing users with a peer-to-peer system that supports high-security payments with low fees. Within such systems, there is no need for a central authority, and each transaction is recorded in a ledger that gives the user autonomy over their payments.
This approach to finance takes away some of the basic functions of traditional banks as we know them, giving more power to decentralized technologies that can fulfill anything from payments to settlements and clearance services.
However, some of the big industry names are doing their best to enter the blockchain space and modernize their offering. For instance, JPMorgan Chase introduced the JPM Coin which is used by their business clients to simplify cross-border payments that happen in real-time.
When it comes to entertainment, the music industry is mostly using blockchain to provide creators with fair sharing processes by introducing smart contracts that ensure the revenue on purchases will automatically be forwarded to the right accounts. Spotify, for example, obtained a startup called Mediachain which has created a decentralized media library that enhances the identification of the music rights holders.
As for video streaming, blockchain is projected to significantly reduce the current video traffic cost by decentralizing video storage, encoding, and distribution, which could disrupt the leading video distribution brands like Netflix and YouTube. For instance, the decentralized VideoCoin Network provides a cloud infrastructure powered by a new blockchain where users can exchange VideoCoins for distribution and other services.
Blockchain is also affecting the gaming market, enabling players to enjoy more space for competition, reward programs, and asset exchange. The technology allows the players to exchange digital tokens for cryptocurrencies without any third-party involvement. Decentralized money is working its way to becoming a popular payment method in online gaming, and today there are a growing number of casinos that accept crypto payments.
Today’s retail systems that currently dominate the industry hold the majority of consumers’ trust as the sales channels where the purchases are made. For instance, a great deal of Amazon’s success lies in the trust they managed to gain over the years.
However, that trust is threatened to be decentralized by blockchain which is likely to take it away from the marketplaces and attach it to the sellers themselves. In fact, some companies are already developing decentralized utilities that are used to connect brands, manufacturers, third-party sellers, retailers, and consumers without having to involve middlemen.
Moreover, a German software company Gambio developed GAMB, a decentralized marketplace designed to give the retailers full control over their selling space. On the other hand, some retailers are also entering the metaverse.
Walmart, for example, intends to launch a cryptocurrency of their own, as well as their own NFTs. It is also expected that blockchain will transform the e-commerce landscape by increasing transaction security and by reducing transaction costs. In 2020, the global giant Alibaba already filed a patent for a transaction system powered by blockchain.
The storage of people’s health data as it is can cause a number of problems since all the information is stored in centrally located files that are not fully protected from unwanted access. Whenever someone requests a piece of information, locating the right file can take hours, which may lead to data losses, breaches, or theft.
The way blockchain technology helps resolve this issue is by eliminating the need to use central authority and therefore enabling quick access to data. Since each block is connected to another one, and they are all together distributed across the nodes, it is much harder for hackers to corrupt the files.
In addition to that, blockchain also helps control the issue of counterfeit medication which is another huge problem in healthcare. Counterfeit medication is pretty hard to differentiate from real meds, and blockchain technology puts that in order by using precise supply chain management protocols where each medication can be easily traced.
Countless industries are expected to be transformed through decentralized technologies as the popularity of cryptocurrencies continues to rise. The innovative blockchain systems are definitely here to stay, and it will be exciting to see how they modify today’s markets when even more companies decide to open their doors to the new possibilities they provide.