As CTO of Solutions at Rackspace TechnologyJeff is fanatical about helping people and companies see more success with technology.
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Blockchain is seemingly everywhere these days. From new cryptocurrencies to its potential uses in the transfer of information across countless industries, blockchain is gaining traction, making it essential for business leaders, industries and regulators to gain a better understanding of the technology and its promising applications.
And while blockchain has yet to achieve the kind of mainstream adoption predicted some years ago, it does have the potential to drive major digital transformational changes and create new opportunities all across the business landscape—from banking and finance to infrastructure and healthcare.
In the simplest terms, blockchain is described by one author as “a distributed ledger that records transactions chronologically and publicly. Its database is not stored in any single location; instead, it is shared across a network.” This allows for a high degree of control of information and transaction transparency.
Unfortunately, there has been so much overheated rhetoric on all sides of the blockchain debate—from its proponents positioning it as the solution to all of the world’s ills to detractors denigrating it due to its associations with unsavory crypto scammers—that it has become increasingly difficult to separate fact from fiction. Web searches about blockchain come back more often than not with terms such as crypto, bitcoin, ledgers and tokens, forcing neophytes to throw their hands up, racing down a rabbit hole of even more confusion.
In fact, Los Angeles-based digital media consulting company Vorhaus Advisors surveyed more than 2,000 consumers that showed only 1 in 4 (25%) of adults in the US have any idea what blockchain is. The same study also revealed 2 in 3 (62%) stated that blockchain is the same as cryptocurrency, and 48% said that blockchain is the same as bitcoin.
Since blockchain is typically still viewed only in the context of digital assets, people don’t understand how it can be implemented or what it does. This has created a lot of fear, uncertainty and doubt around its application. This extends to all areas of industry and government where we find this impacting not only business but policy. In a very real sense, digital assets have obfuscated the understanding of what blockchain technology is, how it works and what it’s good for.
The reality is that blockchain technology has the potential to radically change how businesses and individuals transfer goods and information, and some of that transformation is already taking place under our noses. Any industry in which transactions require a permanent record and trust from several parties can potentially benefit from blockchain. Moreover, it can significantly streamline paper-intensive industries that require an accounting ledger.
Let’s look more closely at three real-world blockchain use cases that really drive home how adaptable, ubiquitous and transformative it can be.
Finance And Banking
No industry has been the subject of more blockchain hype than finance and banking, and with good reason. It’s an industry entirely driven by transactions. To use just one example, think of a traditionally paper-driven function such as letters of guarantee—documents issued by a bank that ensure that suppliers get paid for the goods or services they provide in the event that the payor cannot pay. The blockchain can transform the traditional letter of guarantee into a completely paperless, digitized and transparent process, helping to eliminate fraud and forgery since the blockchain network is secured by the weight of the institution behind it.
Blockchain could also help with KYC (know your customer) requests. As a Deloitte article notes, “A blockchain-based registry would not only remove the duplication of effort in carrying out KYC checks, but the ledger would also enable encrypted updates to client details to be distributed to all banks in near realtime.”
Reimagining Healthcare
The sudden need for remote healthcare and other medical-related practices due to the pandemic has shifted the focus of delivering clinical treatment in a virtual or data-driven manner. As a result, the range of blockchain applications in healthcare is quickly shaping the future of how service is provided and the capabilities and tools physicians have at their fingertips.
For example, the sharing of patients’ electronic health records (EHR) has long been riddled with inefficiencies and duplications. Think of how many times you’ve had to request one physician to share physical health records with another—or how many times you’ve had to fill out the identical paper form at each doctor visit. There have been a handful of different studies conducted that show the promise of blockchain in this capacity.
Cattle 2.0
It may not be the first industry you think of when you think of blockchain, but the cattle industry is another one ripe for disruption. Historically, validating the health, age, location and vaccination records of cattle has been done the old-fashioned way: on analog ledgers. But blockchain can bring traceability and transparency to the industry, allowing producers to track animals during their entire life spans in real time, including inventory management, health management and origin verification. We’re going to see more and more tech companies enter this space, including the partnership between Blockapps and Genesis-Blockchain.
As these three examples show, blockchain is about a lot more than crypto. In fact, it may be the key to transforming inefficient processes across the industry spectrum.
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