Early in 2018, Blockchain was one of the hottest buzzwords in tech, largely due to the rise of Bitcoin. The buzz around the concept of Blockchain tended to subside with the decrease in Bitcoin’s value; however, many still do not know what the blockchain is and what its implications are for businesses.
A blockchain is essentially a record of digital transactions. By use of cryptography, data is contained in blocks, each block linked to the one before it, such that data cannot be altered.
It’s important though to understand that blockchain has applications other than just cryptocurrencies. Some companies are beginning to utilize blockchain within their business model to provide Blockchain-as-a-Service (BaaS).
To learn more on how blockchain technologies are at the forefront of industry change, keep reading below:
Healthcare is a massive industry that generates more private data than any other. Federal law (namely the Personal Information Protection and Electronic Documents Act in Canada and the Health Insurance Portability and Accountability Act in the US) requires health organizations to protect patient records. Failing to protect medical records can bankrupt healthcare businesses from fines alone.
It was easy to secure patient records back when paper was the norm, but in the digital age, the healthcare industry has had to keep up with changing technologies. Digital storage of patient records brings with it an added set of security concerns.
Blockchain tech is helping move the healthcare industry forward by promoting intra-organizational data sharing, all while protecting said data from potential data breaches.
Distributed networks store data with blockchain tech. This means organizations don’t need to worry about costly databases.
The blockchain breaks data across the network, preventing it from being intercepted by cybercriminals. In the event of a data breach, cyber thieves would only be able to obtain a small piece of the information and not enough for it to be comprehensible.
Smart contracts secure business transactions without the need for legal intervention. They also have applications in mobile and desktop software development.
Companies trading complex securities like bonds and stocks can write smart contracts, the terms of which are written in code on a decentralized blockchain network. The network then verifies whether parties have fulfilled their conditions before executing the contract. This process cuts out the middle-man in business dealings and ultimately saves money.
Smart contracts can be thought of as the self-checkout machines of complex trading.
These contracts also have a role in traditional business. Management can put together smart contracts to set out clear expectations for employees, using a blockchain to track whether the conditions of a contract were met before releasing employee payments.
Investors can even use blockchain-backed smart contracts to buy blockchain-created cryptocurrency futures.
Blockchain technologies are evolving
Blockchain is still very new, and its integration into various business functions will be a subject of much-continued thought and debate. However, as current trends would show, blockchain applications are likely to transform multiple industries by adding security, transparency and efficiency.
There may be benefits to investing in the industries that will be first to integrate with blockchain.
The Evolve Innovation Index ETF conveniently unites these industries such as big data, cloud computing, and healthcare into a simple ‘one stop solution’ for investors looking to capitalize on future innovation and disruption.
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