According to Statista data, the global blockchain technology market share by use case in 2021 was distributed as follows; cross-border payments and settlements (15.9 percent), lot lineage and provenance (10.7 percent), trade finance and post-trade (10 percent), assets/goods management (8.8 percent), identity management (7.6 percent), and other use cases (47 percent).
Blockchain is the space where everything happens in the crypto world. However, the applications of this technology go even further. Smart companies have started to install IT infrastructures supported on blockchain to speed up their financial transactions and accelerate data transfer. If you’re a tech lover, get ready to know how blockchain will change how society works and grows over the years.
Key Areas of the World Economy and the Job Market Where Blockchain is Gaining Ground
Blockchain has several strategic use cases in growing industries that migrate their logistics towards Information Technology. Let’s see what blockchain works for.
The oil and gas supply chain is a complex interplay of coordination and competition. Blockchain has the potential to accelerate the flow of big data that drives all financial activities in this industry. That is why innovative technologies like Vertrax Blockchain are entering the market. For multi-cloud customers, this software is based on the IBM Blockchain Platform and delivered on AWS (Amazon Web Services).
A working scheme like this can organize the logistics of an energy company based on blockchain to bring new insights into the technical issues of the oil and gas industry and many other big pieces in the global economy. For example, a big oil exporter like Saudi Aramco, which might have its sales and production databases stored in the cloud, makes its operational processes even faster than its competitors.
Small and medium-sized companies that transform their operative infrastructures into IT-based infrastructures can see an increase in commercial profits. Countries and governments around the world also understand this context. Blockchain can encrypt data to secure trade financing to grow the relationship between banks and trade companies.
For example, in Europe, leading banks now use blockchain efficiency to reduce the cost and risk associated with trade and regulatory finance requests. Therefore, blockchain provides a healthy and appropriate environment with legal security for investments and big foreign capital.
The financial industry can see exponential growth in its operations thanks to the fast data processing of blockchain. Capital and hedge funds will gain solid coverage with an IT infrastructure supported in this technology. The main benefit of blockchain in investment management is transaction validation. This means that the transparency of the blockchain helps each party easily validate transactions anywhere in the world.
Smart contracts are a new way to make big deals between two or more parties on a large corporate level and even among particular financial agents. These digital contracts automate agreements and remove the intermediary by resolving problems related to trust and payments. In this way, agreements between two parties can be made more efficiently.
Smart contracts have use cases in large industries like insurance, supply chain management, financial data recording and management, copyright management, clinical trial tracking, and property ownership transfer.
What Makes Blockchain Good for Business?
- Consensus: Global society agrees that blockchain is a new space for economic interactions in a democratic and collectively affordable way. Shared ledgers are updated only after the transaction is validated by all relevant participants involved, |which makes accountability the essence of this technology.
- Replication: Every transaction is compounded by a set of blocks with a little piece of data, each containing information of the executed transaction. Once a block is approved, the transaction is automatically recorded and created across the ledgers for all participants in that channel. Each participant of this network shares a single ‘‘trusted reality’’ of the transactions, avoiding scams and fraud.
- Immutability: Banks or governments cannot confiscate all of the money, data, and information contained in the blockchain. Even more, blocks can be added in every transfer but not removed. There’s a permanent record of every transaction, which increases trust among stakeholders and boosts a proportional distribution of funds.
If you’re a software developer or if you own a business looking forward to renewing its operations, blockchain is the main solution you have. Even though it’s an expensive investment, it will be worth the various benefits the company will receive in the long run. The present and the future of digital work and economy has a name: Blockchain.
Alex is the CEO of Fantasoft LLC. He is a marketing specialist and blog writer from the UK with experience working with a variety of different companies including law firms, construction companies, roofing specialists and restaurants.