Three Industrial Applications of Blockchain Technology

Blockchain enables secure business models, streamlines business processes, and eliminates uncertainty.

In traditional transactions, we maintain ledgers where we make records for an order, or payment, track accounts, verify transactions, and more. As the transaction proceeds, multiple ledgers created by multiple individuals led to delayed submission, fraud, manual errors, inefficient validation processes, and so forth.

By implementing blockchain technology, these vulnerabilities are reduced as the technology brings transparency to end-to-end transactions. In simple words, the data gets recorded in a block, connects with previous and next blocks, and gets distributed throughout the network. It is a single, shared, tamper-proof ledger where the transactions are recorded in consensus with the participating parties over the Internet.

These authenticity and security features have attracted industries to adopt blockchain applications and earn customers’ and partners' trust. Let’s have a quick rundown on how blockchain engineers are creating disruption(s) in three of the industries here.

Blockchain in Agriculture

Technology-driven agriculture creates a strategy in farming and elevates the standards of farmers. The blockchain ledger creates records of the data in real-time initiated from buying seeds/seedlings to delivery of the products to the consumers.

It creates an awareness among the farmers to produce the crops that fulfill the regulatory compliance in selecting and buying the seeds, maintaining soil quality, using an appropriate dosage of fertilizers, implementing farming practices, processing the harvest, and selling to certified agencies. Because the data is streamlined and verified throughout the process of agriculture from the farm field to the end-user.

The consumers can track the food production unit and processing date. This readily solves quarantine issues, false labels, and middleman issues. Blockchain facilitates smart logistics, litigation-free leasing, or registration of farming lands.

In brief, blockchain technology helps to identify the loopholes or poor processes in the full chain, make fair pricing, take action against food safety outbreak cases, and implement appropriate measures to rectify the same.

Blockchain in Banking, Insurance, and Finance

The blockchain engineers realized the blockchain benefits first in financial sectors like banking, finance, and insurance.

Blockchain facilitates regional and cross-border payments through an integrated network in real-time. It enables banks and financial institutions to settle payments across the globe in a secure manner by eliminating multiple intermediaries and complex processes at reduced cost and time. The visibility in transactions lessens the disputes and reconciliation necessities.

The insurers deal with sensitive and personal financial information of the participating parties. With shared ledgers, multiple parties can securely exchange data, and permissions, and maintain transparency. Further, insurers can accelerate claim settlements via data verification, automate the process through smart contracts, and reduce fraud and abuse.

Blockchain in Logistics

Blockchain optimizes the whole business transactions; smoothens trading relationships between producers, freight forwarders, brokers, and consumers; streamlines procedures like invoices, orders, payments, logistics, returns, lost and found, theft, and so forth.

It facilitates automated supplier payments; simplifies logistics with serial numbers, barcodes, and RFID tags; tracks products throughout the event cycle; reduces grey marketing, paperwork, and investment cost by sharing information with the stakeholders; detects violations of codes or any fraudulent activity and, enhances credibility.

It strengthens corporate reputation, earns public trust, achieves cost-cutting, and structures a reliable and trusted business process.

Wrapping Up

The industrial applications of blockchain do not end here. Blockchain benefits are realized in media, entertainment, aviation, healthcare, retail, government, real estate, manufacturing, and any industry you name.

Blockchain developers are actively involved in exploring the technology for various industries. To implement technology in the right way, it is necessary to be an expert in the field. Earning a blockchain certification helps developers to gain authenticated knowledge and promote businesses by building blockchain applications.