Top blockchain implementation trends in 2021
The entire world is getting revolutionized at a rapid rate. With everything getting digitalized, new technologies have come to make the transition of traditional methods to the digital world as smooth and secure as possible. Blockchain is also one such technology. The term ‘Blockchain’ is now more recognized than ever. So, what exactly is blockchain? Well, blockchain is a structure to store the records of a transaction. These records are known as ‘blocks’ and it is stored in databases known as ‘chain’. Blockchain was introduced to the world of technology in 2016-2017. It is essentially a distributed ledger technology (DLT) and it has the potential to eliminate the huge amounts of traditional record-keeping methods, which were often tedious and unreliable, and save enormous money as well.
Why is blockchain so much in demand?
Now that we know the meaning of blockchain technology, let us understand why it has become so popular recently.
- It is highly secure as it uses a digital signature to perform fraud-free transactions. As a result, it has become a staple for online transactions which provides a more secure and at the same time a cheaper and efficient transaction.
- It is a decentralized system with the transactions happening by the mutual consent of the users. No third party can access the transaction illegally, as a result reducing the fraudulent cases to a large extent.
- It can be reprogrammed and updated automatically when required. So, as technology develops, blockchain technology too will be up to date and deliver the best outcome in any situation.
Top blockchain implementation trends in 2021:
Blockchain technology is taking over the technical world at a rapid rate. With all the industries implementing it, blockchain has become one of the most relevant technologies implemented largely all over the world, now more than ever. Here are the top implementation trends of blockchain technology:
- Collaboration of blockchain with the government
- Blockchain in the real sector
- Blockchain in healthcare
- Blockchain in the financial industry
Now let us discuss in detail how exactly is blockchain taking over in all these fields.
Collaboration of blockchain with the government:
When blockchain was first introduced, integrating it with the government was considered to be a risky move. However, since the covid19 pandemic, almost everything has become completely digitalized and the government is no exception. The government agencies have also started integrating with blockchain technology and implementing it for various reasons.
Some of the instances of collaboration of blockchain technology with the government agencies are:
- Thailand is going to launch a new judicial document storage system
- Columbia has assured the use of cryptocurrency and other blockchain payment methods.
- Vietnam is already in talks with akaChain (a blockchain platform) to aid in accelerating the digital transformation of the country
Many more countries are leaning towards blockchain technology to digitalize their working and having a secure mode of storage and transaction. In upcoming years, the spread of blockchain technology in government agencies will increase manifold.
Blockchain in the real sector:
Back in 2016, commercial use for Food Trust blockchain was done by a collaboration between Walmart and IBM. Although the collaboration was a miss, IBM continued its development, and Tradelens, a trade solution, was launched after a long-standing partnership with Maersk in 2018.
With continue trials and errors in the real sector, blockchain was adapted by many peer companies like Walmart and implemented for their business.
Some of the instances of blockchain implementation in the real sector are:
- Volvo and Ford use it to track the supply of cobalt
- Nestle uses blockchain to track the origin of coffee and baby milk
- Amazon, Infosys, and many more companies use it to track their wine supply
These are just a few of many more implementations of blockchain in the real sector. It is mostly a global phenomenon and not limited to just privileged businessmen.
Apart from all this, blockchain technology has an immense amount of integration of blockchain technology with electricity companies. It is estimated that the investment in blockchain in the field of electricity is likely to grow to $3 billion by 2025
Blockchain in healthcare:
The healthcare industry is very intensely driven by data. Starting from drug supplies to patient records and updates, healthcare industries need an extremely reliable method for efficient data storage which can be easily accessed when needed. So, what better way of managing such a large amount of data other than using blockchain!
As per a report done by IDC, 1 in every 5 healthcare organizations will start using blockchain for information management and patient identity purposes by 2020. By 2025, 55 percent of all healthcare applications will have integrated with blockchain for commercial purposes. Not just that, as per research done by BIS, by the year 2025 the valuation of blockchain in healthcare will jump to $5.61 billion from the present $170 million.
Blockchain in the financial industry:
As the world is going through a digital transformation, the finance industry was bound to be digitized. Security and accessibility are the major factors required for a financial transaction. Blockchain technology is taking over the financial industry in a revolutionary form.
Using blockchain in the financial industry has the following advantages:
- Improved speed of transaction
- Customers can easily track their assets
- Highly secure transaction
- Prevention from unauthorized access and cybercriminals
One of the largest banking institutions in japan, Mitsubishi UFH Financial Group has declared that it will implement blockchain technology and collaborate with a US-based tech firm called Akamai in 2021. It aims to provide an efficient way of a transaction at cheaper costs for its customers.
Banking sectors are now opting for high-tech securities rather than relying on their traditional methods.
According to a report done by Business Insider Intelligence, around 48% of banking representatives attest to the fact that Blockchain technology will have the biggest impact on banking in 2021 and beyond. It is safe to say that in the upcoming year’s blockchain will spread to a great extent in the financial industry.
The implementation of blockchain technology is immense. It can be applied to any sector, especially now that the world is getting digitalized, blockchain technology will play a key role in managing the data all around the world. The security and accessibility provided by blockchain make it highly desirable for any industry, be it healthcare or finance. Industries all around the world have already started expanding and investing in this technology and in recent years it will surely take over the world as a staple source of privacy and data management.