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What Industries Use Blockchain the Most?

Tech.co | Adam Rowe  | Aug 11, 2021

why is blockchain important - What Industries Use Blockchain the Most?Why is Blockchain important?

Total spending on various blockchain solutions across the globe in 2021 will reach $6.6 billion. And, if the Statista forecasts are accurate, global spending will reach nearly $19 billion by 2024. But the business value-add of the technology will be far higher, reaching $176 billion by 2025 and passing $3.1 trillion by 2030, according to Gartner estimates.

See: CB Insights report features over 50 sectors Blockchain is transforming (beyond just banking)

All the core elements of blockchain are designed to make the protocol impossible to fake or replicate. Each block's timestamp marks the date of any previous transaction, and the cryptographic hash in each block maps to the previous block, so that no single block can be changed without disrupting every other block.

Blockchain drastically reduces the time and resources to verify transactions

As a result, the technology is most important as a way of easily verifying any transaction. The practical impact of this for a business lies in the time and money a streamlined verification process saves. It also allows some people to avoid restrictions and regulations tied to other forms of transaction like legal tender — although the question of whether this impact is good or bad may be up for debate!

Blockchain Use in Financial Services

Blockchain use in financial services - What Industries Use Blockchain the Most?Cryptocurrencies are by far the most common use of blockchain technology, and the financial industry has noticed: Around 90% of all banks in the US and Europe had started blockchain-related projects by 2018. It's a trend in accounting as well, as it helps with record-keeping.

Adapting blockchain is among the industry's streamlining processes that could add up to a cost savings of $12 billion for banks, $7 billion for insurers, and $4 billion for capital markets firms, according to a report from Accenture. Blockchain protocols can reduce as much as 30% of banking infrastructure costs, CoinJournal reports.

Implementing blockchain could save banks $12 billion.

See:  How blockchain and cryptocurrencies can help build a greener future

Settlements are another area that can be streamlined: Traditional trade processes can be clunky and long-winded, but blockchain tech can help everyone involved in a transaction stay on the same page and view the same data.

Blockchain for Travel & Mobility

Blockchain has streamlined car leasing and ride-hailing operations, cutting down on the payment and verification process for each.

Even entire airlines have adapted the technology: The Russia-based S7 Airlines operates with an Ethereum-based blockchain to power smart contracts when selling tickets. They have (reportedly) cut settlement times from 14 days to 23 seconds.

Hotels have adapted blockchain in a variety of ways as well, from internal inventory tracking to powering direct marketplaces or loyalty reward systems.

Tourism and travel had a monumentally bad year in 2020 thanks to the COVID pandemic, with 381 million international travellers, down from 1.461 billion in 2019 according to the New York Times, for an estimated global export revenue loss of $1.3 trillion. But the industry put $8.8 trillion into the global economy in 2018 according to the World Travel & Tourism Council's annual report, and it can hit those highs again in the future with a little help from blockchain tech.

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NCFA Jan 2018 resize - What Industries Use Blockchain the Most? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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