August 12, 2020

Six industries that blockchain will penetrate in 2020

When we say blockchain, we often mean disruptive innovation. And indeed, many industries followed the trend, digitized, and even tokenized their assets to enjoy secure, decentralized data processing.

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According to Clayton Christensen, who coined the term, “Disruptive innovations are improvements to technologies or markets that fundamentally transform them or create completely new markets”. In other words, disruptive innovation can eitherrevolutionize the existing market landscape, or create a completely new segment. The blockchain seems to be doing both. New areas covered by this technology include improvements in the economics of collaborative participation, crowdfunding, artificial intelligence, etc.

In this article, we would like to focus on the “traditional” and nascent verticals where the blockchain will penetrate or where, possibly, it will dominate in 2020.

Financial services

Financial institutions are already taking advantageblockchain-based applications to simplify, automate, and protect your operations. According to Forbes, 80% of banks develop their own blockchain solutions. It is too early to declare victory: the financial sector is only playing with blockchain, but experts believe that in about 2020, the industry will move from experiments to scalable commercial blockchain developments.

The government sector is also not lagging behind. IBM, for example, is working with the government of Dubai to implement smart contracts that can optimize the traffic of goods passing through the port of the emirate. We are talking about goods worth ~ $ 350 billion. Dubai officials plan to transfer all their transactions to the blockchain by 2020!

Voting

Blockchain provides innovative algorithms forvoting with protection against fraud. When a transaction - or voice - is recorded on the blockchain, it is almost impossible to change. This is one of the ways blockchain can promote fair voting. Votem, for example, tested its system in a number of private elections, including the Ohio Bar Association and the Rock and Roll Hall of Fame.

Blockchain technology is widely used inEstonia for voting by shareholders. Moreover, NASDAQ has approved the Estonian experiment as suitable for proxy voting. We are confident that in the near future there will be more such projects.

The property

Most investors expect the firstblockchain-based real estate leases will appear in 2022, but some optimists predict that this will happen in 2020. Smart contracts are believed to accelerate the process of buying and selling real estate. On the other hand, the blockchain will make transactions less costly and more secure, since the data will be easily accessible to all parties.

Content distribution

No need for trust in the blockchainopens up opportunities for perfect record keeping. In other words, the technology ensures that data owners can be calm about their assets. Blockchain revolutionizes the distribution of content rights and enriches the music and multimedia business. For example, technology is mastered by streaming services such as Spotify and Deezer. Content creators need various types of contracts in order to protect their copyrights and at the same time optimize the distribution of content. Placing content on the blockchain makes it possible to fully automate the process and direct payments to content owners.

Musicoin and Revelator claim blockchainIt helps to bypass intermediaries that are inevitable in other cases and makes direct micropayments possible to performers According to estimates, performers lose up to 86% of potential revenue due to piracy. At the same time, they pay a huge commission to streaming services and record companies. Blockchain allows music artists to receive royalties without mediating labels.

Internet of things

According to Gartner, in 2017 there were 8.4 billion (!) of IoT devices, and by 2020 this figure could grow to 20 billion. When used on the Internet of things, blockchain helps reduce security risks, in particular, prevent massive DDoS attacks aimed at several devices. Disabling one device will not affect the entire pool. This is the most important factor for ensuring the security of smart cities, where interruptions are unacceptable and you need a 24-hour connection.

Supply chain management

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Supply Chain Management - Anotherpromising use of blockchain. Thanks to real-time tracking and recording of transactions, it is easy to see what is happening at any given moment. In addition, thanks to a common and public distributed registry, you can always keep abreast of new developments.

There are many blockchain projects related to supply chains. British company Provenance claims that it can with the help of its blockchain technology “Keep you up to date with the movements of your product and the impact of your business on the environment and society”. Walmart collaborates with Tsinghua University andIBM to track the movement of pork in China using blockchain. Another impressive example: mining giant BHP Billiton uses technology to track third-party mineral analysis.

This is not an exhaustive list of industries wherein 2020, blockchain penetration will be noticeable. Given the worldwide adoption of technology and its clear advantages in terms of decentralization, security and high productivity, we are likely to see more companies - and even entire verticals - join the trend.

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