There is a definite difference between consumer-oriented, public blockchain solutions, which are mostly focused on cryptocurrencies, coins, ICOs and bitcoin for instance, and the enterprise or industrial grade blockchain. The later are more secure, closed, and high-performance blockchain solutions compared to the first category that is being considered to be adopted by the industrial verticals segments.
Since the early concepts of blockchain is related to "bitcoin," there is a perception that blockchain cannot be used in vertical industries and it is meant to deal with cryptocurrencies only, or maybe it doesn't have an appeal in these sectors due to the lack of privacy, security, and overall performance. However, this is not the case here. Industrial blockchain markets are beginning to explore and realize the potential of blockchain technology implementation, mainly the Distributed Ledgers technology using Smart Contracts to manage complex operations and transactions, not only "coin transaction".
Fig. 1 - Industrial Blockchain
What Are the First Industrial Grade Blockchain Markets?
So far there are at least six sectors that are benefiting from Industrial Blockchain, they are:
This segment is one of the most active sectors in blockchain with applications ranging from transaction banking, payment, and digital currencies, know your customer (KYC) and supply chain and trade finance,
2. Financial Markets
This sector is also very active with applications ranging from unlisted securities and private equity funds, post-trade, and reference data.
Here the application range from risk exchange, complex risk coverage, group benefits and parametric insurance.
4. Health Care
Clinical trial management, outcome-based contracts, and mediated health data exchange are the most essential blockchain applications in this segment.
Government is also pioneering blockchain applications focused on citizen identity, registry, fraud and compliance, and supply chain visibility
6. Supply Chain
Supply Chain is perhaps one of the most complex implementations of industrial blockchain as it deals with complex, multi-source provider networks, and logistic chains. The primary applications here are supply chain visibility, and trade finance, provenance, and traceability of goods and services using smart contracts.
We expect that other vertical industries, such as Telecom/IT, automotive, manufacturing, etc. will soon join Blockchain applications as it becomes more pervasive in our society and the benefits and ROI is clear. Although there are already potential benefits of using blockchain to improve processes and reduce costs, we expect that more traditional mission-critical and conservative industries such as energy, mining, defense, etc. will take more time to implement such technologies due to the Information Technology (IT)/ Operational Technology (OT) integration complexities. But this is just a matter of time.