By 2022, worldwide spending on blockchain solutions will reach $11.7 billion, according to TechJury.
This is just one statistic that supports the notion that businesses see it as their imperative to adapt to rapidly-developing technologies.
We are now seeing companies moving to blockchain in increasing numbers as they recognize its ability to resolve the challenges that come with traditional business processes and conventional ways of thinking.
Fighting the obsolescence and redundancies in industries like banking, e-commerce, supply chain, traveling and healthcare with novel technologies like blockchain means that their status quo is finally being questioned.
This is primarily being done through cutting costs and intermediaries and creating a fair and transparent environment for establishing business relations.
The global blockchain technology market is estimated to accumulate $20 billion in revenue by 2024.
By implementing blockchain tools in their infrastructure, companies are able to eliminate the need for the dual recording of money movement and have access to immutable transactional records at all times.
In essence, this is already completely changing the banking system. The role of banks as central institutions that record and authorize financial transactions is diminishing as blockchain is getting a better hold over our lives with more and more entities choosing to switch to blockchain every day.
Not only are these enormous databases prone to being targeted by malicious players, but they are very costly to run. Therefore, the burden of keeping them operating falls on the participants in the traditional financial system – companies and individuals alike – in the financial sense, at least.
And while transaction fees are present in the DeFi space as well, the absence of intermediaries equates to lower fees than what banks would ordinarily charge to transfer your money or even hold it for you. It also helps facilitate international transactions as well since blockchain technology tools are not restricted to geographical locations.
Blockchain can reduce 30% of banks’ infrastructure costs.
It seems that we can also expect significant changes in the e-commerce and lodging industries. Lower transaction costs and fraud prevention are particularly interesting in this regard.
With blockchain being a trustless and trustworthy platform, fraudulent chargeback requests are a non-issue for e-commerce companies. Having smart contracts in place ensures that funds are being released upon meeting designated conditions, so there is no room for chargeback claims – with or without the fraudulent intent.
To switch to blockchain solutions also means that transactions cannot be reversed once completed.
Furthermore, it also ensures consumer privacy by having them decide how much information they want to share with the merchants they purchased from. Similarly, blockchain solutions can make it very hard to create fake online accounts or provide incentive models to ensure review authenticity and data on products or that services are transparent.
All in all, blockchain technology allows, for the first time, participants in a transaction to self-verify the authenticity and veracity of information related to the transaction, indirectly guaranteeing customer confidence.
71% of business leaders who are actively using blockchain believe it plays a key role in advancing technology.
When it comes to supply chain companies, turning to blockchain implementation tools for improving their business processes is a no-brainer.
There are many important blockchain benefits particularly relevant to this industry, such as new data exchange methods and quality control. For instance, cargo receipts and customs documents can be automatically and precisely processed through blockchain and the implementation of smart contracts. Maintenance reporting and quality control can also be areas where blockchain can be used to automate processes and leverage trust and information security. This also greatly reduces opportunities for fraud and data tampering, which are difficult to detect or prevent in current systems.
55% of healthcare applications will have adopted blockchain for commercial deployment by 2025.
Healthcare companies moving to blockchain are doing so in increasing numbers in the effort to protect their patient’s information according to the existing legislation such as HIPAA.
What is at stake for them is not only company reputation but also extremely high costs that amount from not meeting the mandated compliance requirements which are measured in trillions of USD.
Hence the need for introducing proper blockchain-based data security services like AIKON’s ORE ID which has the ability to fragment user information on blockchain and secure its immutability that way.
These are just several obvious examples of how companies moving to blockchain have realized the enormous potential of new technologies – blockchain being the most prominent currently – and are already taking steps to figure out how to take advantage.