From Amazon to PayPal - several prominent corporations are exploring cryptocurrency services and/or leveraging blockchain solutions.
Blockchain technology offers applications in different industries including automobiles, travel and tourism, food supply chain, and banking.
Financial services giants like VISA, JP Morgan, MasterCard, BBVA, and PayPal are exploring blockchain technology for different use-cases.
Amazon, IBM, and Microsoft have developed their own blockchain-based platforms to help developers build blockchain projects.
The idea of facilitating peer-to-peer payments by eliminating financial institutions like a bank is still fascinating. Satoshi Nakamoto brought that idea into reality by using blockchain technology over a decade back. It didn’t take very long for people to realize the immense benefits of this revolutionary technology. Industry leaders from various different sectors started to explore the technology for applications and use-cases.
Though the first-ever use case of blockchain technology is cryptocurrencies, it holds several applications in different spaces like banking and finance, food supply chain, travel & tourism, automobile, etc. Let us look at some of the leading companies that are applying blockchain technology to their current infrastructure.
Blockchain in Banking and Finance
According to Statista, the market size for blockchain solutions for the banking system is expected to reach 22.5 billion USD by 2026, while it is just 1.46 billion USD in 2021. The banking and finance sector is heavily influenced by blockchain technology. We have listed a few leading companies that are investigating blockchain use cases in the banking sector.
Global financial services firm, JP Morgan, is working with a group of Taiwan banks to test the use cases of blockchain technology like improving international funds transfers. The company also planning to release JPM Coin, a stablecoin using blockchain technology to facilitate payment transfers between institutional clients.
VISA is planning to connect its financial institutions’ network of merchants and consumers to the blockchain and digital currency networks. The firm has shown its support for blockchain in a blog post titled “Advancing our approach to digital currency”. They plan to build a digital currency ecosystem combining cryptocurrency and fiat money.
Blockchain in Technology
Blockchain offers multiple benefits with its decentralized nature and secured data as its main features. Leading tech companies are using this to increase productivity and efficiency.
Amazon Web Services (AWS) is offering blockchain-as-a-service (BAAS) solutions. The big tech company has simplified complex tasks like creating and running blockchain by outsourcing the operational work. It provides multiple AWS blockchain templates that allow users to set up Ethereum and Hyperledger Fabric-compatible blockchain networks.
IBM company is at the forefront of blockchain developments. It has developed industry-specific needs and provided end-to-end implementations using blockchain technology. It is notable that IBM has released a blockchain-based network to help government agencies and healthcare organizations during the COVID-19 pandemic.
Microsoft released a blockchain platform called Microsoft Azure to help developers in building useful private blockchain networks. Sony is planning to apply blockchain for handling IP rights of the music industry. Other leading companies such as Facebook, Alibaba, Oracle, Apple, Intel are also investing in different blockchain projects.
Blockchain in Automobiles
Based on research, the blockchain market in the automobile industry is estimated to reach $5.6 billion by 2030. Several automobile manufacturing companies started researching different use cases of blockchain technology in the industry.
Tesla revealed that it is working with a union of cobalt producers to develop a blockchain platform to track the commodity from ‘mine to the battery’. Cobalt is the essential ingredient to produce lithium-ion batteries used in Tesla cars. The firm is also exploring the technology on how to increase transparency in the cobalt supply chain.
BMW announced its plans to use blockchain technology for providing transparency and traceability of raw materials used in the production of cars. The company uses PartChain supply blockchain for tracking automotive parts. Several blockchain-based projects are also in development for various internal and external operations of BMW.
Other automobile giants like Mercedes, General Motors, Groupe Renault, and Hyundai are also researching the blockchain space to manage various parts of their operations seamlessly.
Blockchain in Travel & Tourism
Blockchain technology has the potential to greatly impact the travel industry with its unique features. The disruptive technology can improve the overall travel experience of the consumers by allowing them to contact service providers directly.
The Switzerland-based traveling company, Winding Tree seeks to connect travelers directly to airlines, hotels, and tour guides using blockchain technology. It uses LIF tokens and aims to minimize fees for travelers as well as reduce costs for service providers. The company offers savings for the stakeholders of the travel industry by using ERC 827 protocol and smart contracts.
Sandblock is planning to transform the loyalty landscape of the travel industry using blockchain technology. It enables travelers to create their personal loyalty tokens which can be used like a real currency that can be exchanged with fiat money. Sandblock offers active participants among the customers to use these blockchain-based tokens to redeem rewards.
Few other traveling companies that are leveraging blockchain are Cool Cousin, Travelchain, Webjet, etc.
Blockchain in Food Supply Chains
The existing supply chain process is inefficient because food safety is challenging for the food industry. The problems that exist in the food supply chain process like food fraud, illegal production, foodborne illnesses can be solved using blockchain technology.
The world’s largest coffee chain launched a Blockchain-based traceability tool to allow customers to get closer to the farmers of coffee beans. When customers scan a code on the bag of coffee beans, they will get all the information about the producers of those coffee beans like farms and farmers. Starbucks uses the blockchain to provide transparency in multiple processes of the entire supply chain.
Walmart is working with IBM for providing food safety blockchain solutions. They used the open-source ledger technology, Hyperledger Fabric to create a transparent food traceability system. Walmart also implements a broader blockchain application to make sure that safe food is supplied at the stores.
The remarkable innovation of blockchain has drawn the attention of many big-league companies from different sectors. We are likely to witness more and more blockchain applications including our daily life activities. Blockchain technology can change the face of the world completely in the next few years.