With the explosion of crypto, there’s been numerous speculation about what industries can utilize blockchain. Yes, from agriculture to finance, a lot of entrepreneurs have been looking to see how they can implement blockchain technology into their industry. However, as with any tech craze, there’s not always going to be a fit, which is why we’ve listed a few of our early favorites and who we think will be successful with blockchain. Check them out below:
If there’s one industry that could definitely use the help of blockchain, it has to be with lending. According to SuperMoney, there was approximately $1.38 trillion lent last year in the US alone, which blockchain has a lot of potential to disrupt. Why? Because not only could lending be down in cryptocurrencies, but the process to get funded could be done on the blockchain as well.
Where blockchain could come into play with lending is the ability to give people more favorable deals on their interest rates, especially since they’ll be contingent upon the market. Additionally, the verification process of approval, as well as the execution of repayment can all be done in the blockchain, saving a tremendous amount of time.
And lastly, with how secure the blockchain is as a file-sharing mechanism, this keeps financial records protected much better than traditional channels. Yes, crypto could be the perfect way to gain financial refocus in a very immediate future.
As the blockchain is all about the execution of smart contracts, the very structure of it alone could save numerous parties from the costs of drafting and execute a contract. Not only will this create an autonomous system that doesn’t rely on as many actors, but it additionally provides a level of transparency and security currently unmatched. And as noted by lawyers.com, with your average lawyer costing $100 to $400 per hour, blockchain just might be the perfect solution to saving big.
While there have been some early players in the blockchain space working on contract protocols, it’s going to be interesting to see how this develops. Although the blockchain won’t completely eliminate the need for lawyers or contract writing, it definitely will make the execution and follow-up of contracts much more efficient. All-in-all, smart contracts can make a big difference soon and should be something to keep an eye on in the next few years.
According to Deloitte, the asset management market is worth $40 trillion the US alone, which is a massive industry to try to enter. However, for the blockchain, this is much more attainable than you might imagine. After all, a lot of assets gain their value based on guesswork, with a lot of folks fudging the numbers around to prop up the price. This is one thing that will wildly be transformed by the blockchain.
Considering that the blockchain provides a receipt of proof-of-stake, every asset can have a chain that tells what’s been done to it and when. For example, the renovations on a house or piece of property, where you have a specific receipt tied to that asset where you know what was done and when.
To be successful with this, there has to be a form of backing or security; this is what stablecoin is trying to solve. All-in-all, expect asset management to become heavily influenced by the blockchain soon, providing a chain of receipts that help define the value.
Finally, if there’s one industry that’s been a great early use case for blockchain, it has to be the art world. Specifically in the world of digital art, until recently, there hasn’t been any proof of ownership on a digital file. As anyone can take an artists work off their page and post it on Instagram, the blockchain prevents that by providing a proof-of-stake/ownership on who the original creator was. And although a simple application of blockchain, it’s also brought about some surprising figures thus far.
Because the blockchain verifies that a digital file is a one-of-one, this creates scarcity, which in turn increases the value of the art. For example, as noted by Motherboard, a Rare Pepe (the popular internet meme) recently went for $38,500 at an auction, which is a staggering figure for what most would consider a meme. However, as a one-of-one collector’s item, this price point proves it’s just the beginning of digital art on the blockchain.
What are some industries you’re excited to see crypto help out? Comment with your answers below!