By now you have heard of the word disruption many times over. Well, this is a term that seems to share the same level of ubiquity with blockchain technology especially with regards to the concept of the emerging digital age. Whenever and wherever blockchain technology is mentioned, the word is always in close proximity.
The fundamental objective of the blockchain technology is to “disrupt” the traditional multi-sectoral business processes by providing a viable decentralized solution to the mainstream centralized system.
Many industries stand to be disrupted by the blockchain revolution, and BitFortune discussed some of the five prime industries for blockchain disruption in an infographic they designed to illustrate this hot topic.
Traditional crowdfunding evolved with the rise of ICO crowdfunding. This saw an impressive increase in funds sourced through ICO. However, ICO being less mature than the traditional one makes it far from satisfying particularly because of the lack of transparency and zero protection for the investors. This makes it the perfect platform for scammers as well as speculators.
Focusing, however, on equity tokens brings about a transparent, safe, blockchain-managed asset that has the possibility of trading on multiple exchanges. It is less doubtful that blockchain-managed crowdfunding will unlock a series of possibilities including convenient index creation, funds or ETFs. In fact, Waves Platform, Starbase, and Acorn have already adopted this technology.
Currently, a majority of home buyers and sellers utilize escrow or title companies as the middleman for that safety net that will ensure each party keeps its end of the deal. This is also an effort to reduce fraud. However, while third-party verification seems to be an important aspect of the real estate industry, it can be quite costly.
The introduction of blockchain in this industry aims to replace escrow as well as other third parties. It will function by vouching for identities of the parties using its extensive distributed database. Blockchain will help keep track of buying habits, increase rapport and trust as well as a proof of ownership. Loyyal, OpenBazaar, Ascribe, and Everledger are some of the startups that have picked up the blockchain tech in the real estate.
For the online music industry, its relevance means that music rights owners, distributing their works online can directly get paid through fans or businesses without having to share percentages of sales with online digital service providers. This would bring a solution to one of the largest and the most common problem through fairly paying music creators.
Generally, benefits would include contracts and IP protection, creative earnings, worldwide partnerships, and general monetization of music. Companies in the online music industry that have already tapped into blockchain technology include bitTunes, dotBlockchain, Mycelia, and PeerTracks, just to mention but a few.
Already, there are a number of startups that have invested heavily in incorporating blockchain technology into the energy market across different sectors of the industry. Despite the varied nature of the different approaches, the overall goal seems to be the same, which is to create a functioning global energy sharing ecosystem that will adequately balance the demand and supply across the world.
If adopted, blockchain will make it be possible to consider electricity as a tradable asset that can be traded or held depending on consumer preference. As noted in the infographic below, blockchain could disrupt the energy management sector by introducing variable electricity rates, energy payment, peer-to-peer trading platforms, reduce transaction costs, and settlement time.
In voting, decentralization using blockchain technology will introduce techniques to the ever-evolving voting systems. These tools could serve the purpose of disruption, besides offering solutions that make the voting more predictable, transparent to voters and communities, as well as making it fairer.
Understanding the multi-sectoral diversity of blockchain in terms of how it will disrupt the various industries around us is important if we are to be ready for this mind-blowing technology. It is not a matter of if anymore, but when, because all signs point towards a future business world that is centred on blockchain technology.