Blockchain: What Does It Mean for Your Industry?

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In my last post, I explained what Blockchain is and explored some of the challenges that Blockchain architecture aims to resolve. With that knowledge, companies can start exploring the use of Blockchain in their respective industry verticals.

The table below presents example use cases for industry verticals that are actively researching Blockchain. The current research is being led by well-established enterprises as well as promising startups in the financial, healthcare, insurance and other technology areas.

Vertical Use Cases

Financial Services

Escrow/custodian services
Currency exchange and remittance
P2P transfers
Trading platforms
Clearing and settlement
Reconciliation
KYC/AML registries
Regulatory reporting
Servicing of instruments
Issuance, ownership and transfer of financial instruments
P2P lending
Private market share-trading
Syndicated loans

Insurance

Regulatory reporting
P2P insurance
Event-driven claims processing
Smart contract-based underwriting and claims handling
KYC
Fraud detection
Automated claims settlement
Asset provenance tracking

Supply Chain & Logistics

Order fulfillment and tracking
Payments
Supply chain certification
Fraud prevention
Transportation tendering and carrier selection
Asset tracking and reporting

P2P Markets

Ride sharing
Crowd funding
P2P lease marketplace

Retail

Luxury goods authentication

Media & Entertainment

Proof of authorship
Proof of ownership
Reviews authentication
Asset-wise micropayments

Travel & Hospitality

Airline miles
Connected rewards program
Smart rental payment

Healthcare

Decentralized patient record management
Large-scale health data analysis
Health wallets

Public Sector

Voting
P2P bonds
Land titles
Notary services
Vehicle registries

Enterprise IT

Digital asset storage and management
Inter-company record keeping

Utilities

Energy distribution
Smart metering payments

Clearly, there are many use cases for Blockchain across industries, but this doesn’t necessarily mean that the technology is mature enough to be deployed and used right now. With the exception of cryptocurrencies, each of these use cases is still in proof-of-concept mode.

In the end, it may not be the current Blockchain architectures, such as Bitcoin, Ethereum or Hyperledger projects—that turn out to be the most feasible, viable and desirable solution for all the use cases. Each industry or use case may evolve its own version of distributed ledgers and smart contract management solutions. There would be, easily, a three- to five-year maturity cycle after the proof-of-concept mode has ended.

The industry vertical that proves the scalability and resolves the concerns related to regulatory directions, security and privacy may be the first to come out as a winner, but the underlying technology of distributed ledgers and smart contracts could still be beneficial when implementing new business models and designing modern technical architectural solutions for other industries. The financial services industry leads the maturity curve at present, but insurance and supply chain are closing the gap fast.

In upcoming posts, I will discuss how to choose a Blockchain solution for specific use cases given the plethora of constraints on many industries and the pros and cons of each architectural solution.

Until then, I’d like to hear your perspective on Blockchain and suggestions for other use cases that fit the Blockchain model.

Post Date: 9/21/2016

default blog image Arushi Srivastava

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