Blockchain Use Cases and Applications by Industry
Blockchain Use Cases and Applications by Industry
Major sectors are presently deploying Ethereum blockchain solutions to solve recurrent industry problems.
Blockchain technology unleashed a wave of “what ifs” around the world. Inspired by those “what ifs,” ConsenSys formed an enterprise consulting team to develop blockchain use cases and implement enterprise blockchain solutions. To date, ConsenSys Solutions has transformed into an active hub of blockchain development with over 300 consultants across 28 countries. ConsenSys Solutions helps financial institutions, governments, nonprofits, and startups to utilize the public Ethereum blockchain or build, test, and deploy private blockchain solutions across industries.
How will Blockchain Benefit Enterprises across Industries?
Distributed ledger technology holds immense potential for improving efficiency, providing real-time information, and reducing costs. Ethereum enables four key solutions for the enterprise.
Enterprise Ethereum can:
- Reduce costs of trust and coordination with external parties
- Unlock new business models through multi-sided markets and digital assets
- Improve business network accountability and operational efficiency
- Future-proof businesses against antiquated process models
What are the Use Cases and Applications of Blockchain Technology?
Blockchain technology’s innovative characteristics include decentralization, transparency, immutability, and automation. These elements can be applied to various industries, creating a multitude of use cases. Here are what we believe to be the most pertinent blockchain use cases for enterprises and governments:
- Banking and Finance
- Digital Identity
- Energy and Sustainability
- Government and the Public Sector
- Healthcare and the Life Sciences
- International Trade and Commodities
- Media and Entertainment
- Real Estate
- Sports and Esports
- Supply Chain
Banking and Finance
Banking and financial services struggle with archaic operational processes, slow payment settlements, limited transparency, and security vulnerabilities.
Blockchain technology can solve these problems with accountable and transparent governance systems, improved incentive alignment between stakeholders, secure technology infrastructure, and efficient business models. In addition, blockchain allows the digitization of financial instruments, which brings greater liquidity, lower costs of capital, reduced counterparty risk, and access to a broader investor and capital base.
As the number of data breaches soar with each passing year, it becomes increasingly difficult to store and manage user and non-user identities securely. Digital identity theft runs rampant in our society, negatively impacting millions of individuals. To this day, individuals do fail to have full control over their online identities.
A blockchain-based digital identity management system provides a unified, interoperable, and tamper-proof infrastructure with key benefits to enterprises, users, and IoT management systems.
Energy and Sustainability
Oil and gas companies suffer from siloed infrastructures and several issues concerning transparency, efficiency, and optimization.
Enterprise Ethereum has the potential to significantly increase business process efficiencies and reduce costs associated with oil and gas operations and distribution. Combined with IoT devices, a blockchain-enabled power grid automates billing and settlement, clears payments in real-time, and reduces utility costs.
Government and the Public Sector
Traditionally, national and local governments rely heavily on outdated processes, legacy software, and inefficient organization structures. Yet, the public sector requires high-level security.
Ethereum’s encrypted ledger and smart contracts allow governments to build trust, improve accountability and responsiveness, increase efficiency, reduce costs, and create high-performing government functions with more secure, agile, and cost-effective structures.
Healthcare and the Life Sciences
Misinformation, data silos, and the lack of communication between patients, providers, hospitals, and doctors plague the healthcare world.
Blockchain-based data sovereignty and permissioned exchange scenarios will lead to faster, more efficient, and more secure medical data management and drug and medical device tracking. This could significantly improve patient care, facilitate the advancement to medical discoveries, ensure the authenticity of drugs circulating global markets, and more.
International Trade and Commodities
Trade financing and commodities exchange systems rely heavily on paper records that are prone to fraud, human error, and delays.
Enterprise Ethereum can optimize financing processes and accelerate industry operations by providing a secure, streamlined, and paperless solution. With blockchain, every element of the trade finance process can be digitized, and only authorized parties can access data, validate documentation, and execute transactions.
Global legal services are forecasted to grow to $1,011 billion by 2021. While the industry grows, manual, laborious tasks take up the bulk of the work. Time wasted in document creation and management activities costs firms $9,071 per lawyer a year, equivalent to a 9.8% loss in the firm’s total productivity.
Enterprise Ethereum alleviates the labor-intensive manual processes while providing accessibility, transparency, cost savings, speed, efficiency, and data integrity to the legal industry.
Media and Entertainment
Digital piracy, fraudulent copies, infringed studio intellectual property, and duplication of digital items cost the entertainment industry costs the US film and TV industry an estimated $71 billion annually.
Enterprise Ethereum can create a distributed ledger to track the life cycle of any content, which has the potential to drastically reduce piracy of intellectual property, protect digital content, and facilitate the distribution of authentic digital collectibles.
Real estate investments are often inaccessible to many. Currently, it offers investors limited liquidity while requiring the involvement of multiple intermediaries, resulting in higher transaction costs.
Enterprise Ethereum’s smart contracts enhance real estate operations by eliminating intermediaries and optimizing processes. Furthermore, blockchain technology allows industries to digitize assets and financial instruments. This enables the fractionalization of ownership, increased liquidity, and democratized access to real estate investment opportunities.
Sports and Esports
Various blockchain use cases exist for sports organizations, teams, and fans. Ethereum enabled smart contracts could streamline existing operations, provide new revenue models, and enhance fan engagement with enhanced loyalty programs and incentives.
Global supply chains are inefficient, poorly tracked, and oftentimes exploitative. Paperwork can account for half the cost of container transport, and products are frequently mislabeled.
Enterprise blockchain networks create a shared IT infrastructure that streamlines workflows for stakeholders along the supply chain. Ethereum facilitates accurate asset tracking, enable enhanced licensing of services, products, and software, and ultimately improves transparency into the provenance of consumer goods, from sourcing all the way to the point of consumption.
Real-World Blockchain Case Studies
Now that you've explored the different use cases and industry applications of Ethereum blockchain technology, read our real-world case studies, detailing the work of ConsenSys Solutions and ConsenSys products for the sectors of finance, international trade, supply chain, government, social impact, and more.
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