Blockchain Myths
Myth #1: Cryptocurrencies will replace fiat currency
Cryptocurrencies will never replace fiat currency – each have their place and their place is significant and they play off of each other.
Myth #2: Blockchain has reached its full potential.
Blockchain is viewed by some as a disruptive technology, while others argue that it is a foundational technology. With only 5% participating in blockchain technology, this revolutionary technology is continually being adopted, and creatively and innovatively being implemented into new projects. One recent study suggests that blockchain technology will have a minimum of a 1.76 trillion impact on global GDP over the next decade (Tartar, J. Sept. 2021. “How blockchain technology is revolutionary” Retrieved from thebalance.com). It is clear that blockchain is not even close in reaching its full potential.
Myth #3: Blockchain is only relevant in finance.
While blockchain is most closely associated with Bitcoin, it’s not restricted to the world of finance. The technology of blockchain has the ability to create, store, and share sensitive information. It is valuable in a vast range of industries.
Blockchain technology is sweeping across many industries transforming and introducing companies to the power of blockchain. Exploding beyond banking and cryptocurrency, “annual spending on blockchain solutions is expected to reach nearly $16B by 2023” according to CB Insights who recently released an article examining the positive benefits 65 big industries could gain-and many are already gaining-from blockchain technology.
Operating through a decentralized platform, blockchains verify and register the transaction of data, making this data resistant to fraud. Blockchains can then deliver transparency and security to companies and customers. Looking at some of the industries already positively impacted using the power of blockchain as examined by CB Insights highlights the innovative impact of blockchain technology. The future is exciting to consider with blockchain solutions improving so many industries.
Financial Services
Banking, stock trading and hedge funds, crowdfunding, crypto exchanges, wills and inheritances, accounting, loans and credit, insurance, and charity are just some of the financial services that are already reaping the benefits from blockchain technology. For example, in a charity or crowdfunding site, a “blockchain provides the ability to precisely track where your donations are going, where they arrived, and whose hands they ended up it” (CB Insights).
Travel and Mobility
Automotive manufacturing, car leasing and sales, ride-hailing, public transportation, trucking, air travel, aerospace and defense, and hospitality benefit from decentralized platforms that are community-governed and allow for all participants to have a say in decisions. Blockchain technology “has the potential to streamline parts inventory and authentication” and helps with the problem of accurate records. Tracking shipments and protecting assets all contribute to efficient systems.
Infrastructure and Energy
Industrial IoT, 3D printing, construction, architecture and building, real estate, energy management, waste management, oil, and gas all benefit from the ability to validate and enforce contracts between multiple stakeholders. Verifying documents, property deeds, and liens reduce the need for paper-based records “speeding up transactions” and “reducing transaction costs on all sides of the transaction” (CB Insights).
Healthcare
Healthcare information exchanges, vaccine distribution and monitoring, genomics, claims management, pharma, research and clinical trials better serve the public with blockchain technology as data, management of records, faster innovation for clinical testing and sharing of data, and perhaps most importantly, reduce costs.
Government
Government and public records, voting, gun tracking, law enforcement, federal mail, and public assistance could be streamlined utilizing blockchain to collect information, distribute assistance, and record transactions.
Retail and CPG
Retail, E-commerce, food and beverage, cannabis, gift card and loyalty programs would all benefit from more secure platforms with few middlemen processing transactions. Blockchain’s unique verification ability could cut costs, help with regulatory compliance, and even serve as an accountability platform.
Agriculture and Natural Resources
Agriculture, animal husbandry, fishing, logging and timber, and mining can utilize blockchains to promote trust and security and lead to more sustainability, legal compliance, improve food safety, and encourage healthy competition between sellers.
Information and Communication
Telecommunications, messaging apps, publishing, education and academia, and libraries can potentially use blockchains to build community-based archives, verify academic credentials, counter censorship in news media (censorship-resistance), along with enhancing security and privacy.
Entertainment
Music/entertainment rights and IP, video streaming, gaming, social media content, sports management, gambling, art, and photography are enhanced with blockchain technology using smart con- tracts, decentralized networks, and user anonymity.
Enterprise Tech
Cloud computing and storage, internet identify and DNS, internet advertising, human resources, business, and corporate governance, and forecasting benefit from using blockchain for smart con- tracts, decentralized cloud services, reduce transaction costs, and support data analysis.
