Ever since Bitcoin’s anonymous creator, Satoshi Nakamoto, introduced the world to blockchain networks, there has been a race to find new ways to integrate this game-changing technology. Today, there are thousands of blockchain protocols in operation. You can find decentralized networks in a variety of sectors and markets, with more joining the revolution daily.
Notably, this growth didn’t happen overnight. It took a community of dedicated users, developers, and more. Remember, early cryptocurrencies focused primarily on providing a decentralized peer-to-peer electronic cash system to the market.
The introduction of Ethereum ushered in a new age of smart contract programmable blockchains to the market. In turn, these new networks began to explore a vast array of use case scenarios. Here are 5 industries that blockchain technology is upending currently.
The finance sector has seen unprecedented blockchain adoption. Notably, both regular users and financial institutions have ventured into the blockchain sector. For example, over 70% of central banks have some form of blockchain program or intentions to start one in the coming years.
Projects such as CBDC (central bank digital currencies) leverage the transparency and efficiency of blockchain technology to provide banks with more control over the monetary supply. CBDCs save banks in deployment and monitoring costs. The main thing about CBDCs is that they are centralized, unlike Bitcoin, and intended to supplement a fiat currency.
Average bank users have also ventured into the blockchain sector via an alternative route, DeFi (decentralized finance). DeFi is a term used to describe traditional financial applications that have been decentralized on the blockchain. These networks provide the world with open access to necessary financial services and features.
Notably, DeFi is one of the fastest-growing sectors in the blockchain market. Its rapid expansion has ushered in a bunch of new features such as staking, yield farming, DEX (decentralized exchanges), peer-to-peer lending, trade mining, and more. DeFi systems eliminate the bank from the equation and distribute the profits to the network directly. Consequently, more users seek out DeFi protocols daily due to their ROI potential and simplicity.
Projects such as META 1 Coin push the boundaries of DeFi to new heights. META 1 is a complete DeFi ecosystem that combines the efficiency of a proprietary DEX (decentralized exchange) with advanced DeFi banking services. Users gain access to a variety of powerful features including a multi-asset self appreciating stablecoin, an interest-yielding savings account, and a crypto debit card that can be used anywhere VISA is accepted.
The logistics sector is another industry that has seen significant advancements due to blockchain integration. Logistics can be explained as the business of moving products from raw materials to manufactures, and on to consumers. As you could imagine, the logistics sector is massive.
To put the sheer size of the market into perspective, one report placed the global logistics market at $10.32 Billion in 2017. The same study predicts this value to rise sharply. Specifically, analysts predict an estimated growth to $12.68 Billion by 2023. As such, there continues to be a strong drive to cut inefficiencies via blockchain systems.
The integration of blockchain technology with the IoT (internet-of-things) introduces new possibilities to the logistics market. The IoT is the network of smart devices globally. Logistics firms can use these sensors and blockchain’s near-instant consensus capabilities to provide real-time feedback on products.
The computer giant IBM has been a pioneer in the blockchain logistics department. The firm launched the IBM blockchain in 2017 and has since grown it into a vibrant platform. Currently, the network provides supply chain solutions to enterprise-level clientele. The system enables businesses to set up smart contracts that automatically trigger when pre-defined business conditions are met as part of this approach.
The gaming sector is another major industry that is ripe for a blockchain takeover. Already, there has been a growing amount of crypto adoption within the gaming sector. The recent surge in adoption can be attributed to multiple factors. For one, gamers want more value from their experience. Additionally, developers want to provide more excitement to users while creating additional ROI opportunities.
The blockchain gaming revolution has begun on multiple levels. There have been the launches of Bitcoin-related video games. Games like LiteNight enable users to engage in FPS fun and earn. Chase down your opponents and battle to the death. The loser drops their Satoshis and the winner earns for their victory. Notably, these games require the Lightning Network to provide microtransaction capabilities for Bitcoin.
There has also been a strong integration of cryptos into traditional games. For example, this year saw the popular Fortnite streamer Tfue release an NFT (non-fungible token). non-fungible tokens differ from regular cryptocurrencies in that they represent a unique asset. As such, their value is based on their usability and in-game value rather than their market cap. Consequently, NFTs can appreciate in value quickly.
Currently, developers are working on a variety of in-game NFTs that will enable users to secure ROIs for their invested time and effort. Imagine being able to sell your avatar or trade it on an open market. Imagine going to a market in a role-playing game and purchasing actual cryptocurrency. This and much more is possible via blockchain integration into the gaming sector.
The art sector has been one of the industries that saw the greatest level of blockchain integration. The use of NFTs to protect and validate content has been a game-changer. Artists can now create unique digital masterpieces that are blockchain verifiable in both authenticity and scarcity.
These one-of-a-kind digital assets have fetched some impressive results to date. For example, this year saw NFT artist Beeple, sell one of his works for over $60 million. The artwork features a picture of a giant topple stature of trump with a rainbow coming out of his bum.
Anyone familiar with the current state of the cloud computing sector can attest to its massive centralization. Networks such as Amazon dominate the market leaving no room for competition. This dominance has led to a steady increase in the costs of acquiring cloud computing services.
The introduction of decentralized cloud computing networks has upended the entire market. Platforms such as STORJ, enable regular users to rent out their unused computer space and earn rewards. The protocol integrates advanced encryption techniques to protect all data and provide a more responsive and cost-effective approach to those in need of data services.
5 Industries that Blockchain Technology Continues to Reshape
These 5 industries have seen some major changes ever since the introduction of blockchain tech. However, they are not alone in their quest to improve the current business systems via decentralization. You can expect to see blockchain technology slowly become part of your daily life moving forward. This integration will reduce inefficiencies and provide more opportunities to the average user.