Blockchains are typically managed by a peer-to-peer network for use as a publicly distributed ledger, where nodes collectively adhere to a protocol to communicate and validate new blocks. Although blockchain records are not unalterable as forks are possible, blockchains may be considered secure by design and exemplify a distributed computing system with high Byzantine fault tolerance.
1. Blockchain benefits in supply chains and food chain
Building trust between trading partners, providing end-to-end visibility, streamlining processes, and resolving issues faster with blockchain all add up to stronger, more resilient supply chains and better business relationships. Plus, participants can act sooner in the event of disruptions (see Benefits of Blockchain Technology). In the food industry, blockchain can help ensure food safety and freshness, and reduce waste. In the event of contamination, food can be traced back to its source in seconds rather than days.
Supply chain data is not always visible, available or trusted. Blockchain helps supply chain partners share trusted data through permissioned blockchain solutions.
In times of disruption, this matters more than ever. Businesses and consumers want brands to guarantee product authenticity, while supply chain participants demand responsible sourcing and better visibility to minimize disputes.
Supply chain networks can be limited by one-up/one-down visibility. Through distributed ledger technology that provides a shared, single version of the truth, Blockchain supply chain solutions give permissioned participants greater visibility across all supply chain activities.
Blockchain for supply chain solutions help supply chain leaders use data to handle the disruptions of today and build resiliency for the future.
One unexpected event can cause a cascading array of supply chain disruptions. Blockchain supply chain solutions use Smart contracts that automatically trigger when pre-defined business conditions are met. This gives near real-time visibility into operations, and the ability to take action earlier should there be an exception.
New supplier onboarding is a time-consuming, manual experience for both buyers and sellers in a supply chain. Blockchain supply chain solutions can speed this process through an immutable record of new vendor details that business network participants can trust.
2. Insurance blockchain benefits
Insurance companies are using blockchain and smart contracts to automate manual and paper-intensive processes such as underwriting and claims settlement, increasing speed and efficiency, and reducing costs. Blockchain’s faster, verifiable data exchanges help reduce fraud and abuse.
Technological disruption has come to the insurance industry — and the smart risk management strategy is to embrace it. Blockchain is helping the insurance industry radically transform operations by enabling faster verifiable data exchanges, visibility for all parties, and transactions underpinned by pervasive security and trust.
One example of transformation is openIDL, a network built on the Blockchain Platform with the American Association of Insurance Services (AAIS). AAIS is automating insurance regulatory reporting and streamlining compliance requirements, and that’s improving efficiency and accuracy for both insurers and state insurance departments.
What’s blockchain’s potential ROI in insurance?
Discover the positive impact Forrester says IBM Blockchain can have on your business. This report includes:
- Blockchain technology and market overview
- Financial model framework
- Projecting new revenue and savings
- Expanded economic impact and analysis of costs
- Sample organization calculation and financial summary
3. Banking and financial industry blockchain benefits
When financial institutions replace old processes and paperwork with blockchain, the benefits include removing friction and delays, and increasing operational efficiencies across the industry, including global trade, trade finance, clearing and settlement, consumer banking, lending, and other transactions.
What if we could revolutionize the financial world?
Where old processes and paperwork are replaced by newfound cooperation, innovation and speed. Where fraud and crime could one day be put to rest by collective trust in a highly secure, shared view of the truth.
- Blockchain enables real-time, multi-party tracking and management of bank guarantees and letters of credit
- Depend on faster and more accurate reporting with an automated compliance process that draws on immutable data records
- Benefit from the near real-time, point-to-point transfer of funds between financial institutions, removing friction and accelerating settlement.
It’s already happening.
Leading financial institutions are trailblazing the way forward with Blockchain, working together to remove longstanding friction, create new solutions and deliver tangible business outcomes. Now it’s your turn to join them. What will we solve together?
What’s blockchain’s potential ROI in financial services?
Discover the positive impact Forrester says IBM Blockchain can have on your business. This report includes:
- Blockchain technology and market overview
- Financial model framework
- Projecting new revenue and savings
- Expanded economic impact and analysis of costs
- Sample organization calculation and financial summary
4. Healthcare blockchain benefits
In an industry troubled by data breaches, blockchain can help healthcare improve security for patient data while making it easier to share records across providers, payers and researchers (see How AI Changes Healthcare Workforce?). Control over access remains in the hands of the patient, increasing trust.
Blockchain has already demonstrated its value in healthcare and the life sciences by enabling trust and collaboration, and will continue to be at the forefront of addressing ever more challenges.
As the pandemic continues, healthcare and the life sciences face new challenges, including adapting supply chains to deliver protective equipment and rapidly developing treatments, tests and vaccines.
Meanwhile, healthcare professionals are grappling with how to manage consent and keep individual health data secure as they look to leverage health data to safely re-open for business.
- As organizations seek to confirm the health status of their customers and employees, blockchain networks help assure data integrity by storing an immutable, single version of the truth. Network participants can collaborate with confidence as they exchange information while controlling data access.
- From resolving disputes to triggering next steps in supply chain transactions, to moving medical images through review, smart contracts can automate processes for increased speed and efficiency. Smart contracts automatically take action when established conditions are met.
5. Pharmaceutical blockchain benefits
As pharmaceutical products move through the supply chain, every action is recorded. The resulting audit trail means an item can be traced from origin to pharmacy or retailer, helping to prevent counterfeiting and enabling manufacturers to locate a recalled product in seconds.
- As pharmaceutical products move through the supply chain, they are recorded on a blockchain. That audit trail means an item can be traced back to its origin, or out to the receiving pharmacy or retailer.
- This helps reduce counterfeiting and manufacturers can locate a recalled product in seconds so they can respond rapidly.
6. Government blockchain benefits
Blockchain can help governments work smarter and innovate faster. Secure sharing of data between citizens and agencies can increase trust while providing an immutable audit trail for regulatory compliance, contract management, identity management, and citizen services.
In the face of unprecedented disruption, 74% of leaders like you agree that the traditional ways of doing business are not sustainable. Technology is at the root of much of this disruption — but in the case of blockchain, it can also be the remedy.
By automating redundant processes and sharing data among permissioned network members in a decentralized way, blockchain reduces traditional friction between systems and unlocks the value long trapped inside hardened organizational silos.
Government is having to quickly respond to the enormous disruption of COVID-19. Hear two specific scenarios to learn how blockchain can help you meet this pressing challenge.
The result is newfound trust and transparency across the food supply, supply chains, financial services, energy, identity and much more. And in the public sector, IBM is working with entities at all levels to prove blockchain’s value in leading the digital transformation of government.
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by Peter Sonner
