Businesses across the UK have faced uncertain times and ensuring they are prepared for potential changes that could revolutionise a number of industries is essential.
Blockchain adoption is becoming more widespread with the UK and Europe’s main central hub being focused around London. However, Wales is also taking steps to embrace this with the Welsh Government backing the Blockchain Demonstrator Challenge Fund in 2022.
The purpose of the Blockchain Demonstrator Challenge Fund is to finance projects that display how blockchain technology can be integrated into Welsh society. Nine projects across a range of industries including agriculture, medicine, transport, film, and finance were funded.
Some industries have already begun to implement state-of-the-art blockchain technology into practice, with many accepting cryptocurrencies as payment as well. Take a look below to find out what sectors are making use of blockchain technology and the benefits it can bring.
Industries That Use Crypto and Blockchain Technology
Blockchain technology uses decentralised digital ledgers to record and store information. This provides a high level of transparency and means they are updated by peer-to-peer computer networks rather than one overseeing body.
Blockchain technology has facilitated the growth of cryptocurrencies by allowing digital transactions to be recorded.
As well as providing a decentralised database that is not affected by borders, it also increases security and minimises the risk of cybercrime.
Blockchain technology has already been adopted by a range of industries, and as the tech continues to develop, it will likely be applied to many more. Some industries that use blockchain and cryptocurrencies include:
Fintech companies live and die on the technologies they use and blockchain is helping to increase efficiency across the industry, as well as reducing costs.
Blockchain’s decentralised protocols and P2P transactions help to speed up processing times by removing the need for middlemen from the process. These quicker transactions reduce the need for third parties to get involved, significantly reduce costs and improve processes.
Increased security is another benefit that is essential to the reputation of Fintech companies. The financial sector is one of the most targeted online services and there were 2527 reports of attempted cybercrime in 2021 alone.
Blockchain can improve confidentiality and help to secure assets as transactions are encrypted and the decentralised technology does not have a single point for criminals to attack. Transactions are only validated when a consensus of nodes allows it.
An estimated 17% of UK blockchain investments have been made in Fintech, which is the largest of any sector.
The second most popular investment opportunity in the blockchain space is in crypto trading which accounts for 14%. Crypto trading can be compared to the stock market as consumers attempt to purchase crypto or shares before the value rises and sells at its peak.
Cryptocurrency peaked on November 10th, 2021 when Bitcoin was valued at just over £51,000,000. However, there are still new currencies coming to market that offer great value for money for those seeking investment opportunities.
The betting industry is one that has moved quickly to embrace blockchain technology. Dedicated crypto casinos specialise in accepting selected cryptocurrencies and offer an extensive range of bonuses and offers to entice new users. These can include deposit matching and enhanced odds.
Allowing customers to pay using cryptocurrency opens up a new market for online casino operators. It can also help to increase user security and anonymity.
Many operators accept a variety of cryptocurrencies, with Lucky Block Casino accepting the following:
Others might not accept so many coins, but almost all crypto casinos will accept BTC and ETH. Quicker transactions and cheaper fees make decentralised cryptocurrencies a more convenient option for gamblers, especially if they are playing with operators in different countries.
Blockchain’s use in the energy sector could improve green energy usage by automating the system used to issue credits based on renewable energy that is generated and exchanged by businesses and domestic properties. Credits can also be tokenised using cryptocurrencies.
The decentralised network enables peer-to-peer trading and minimises the need for a central energy provider which could help to reduce overall costs.
Automation is key to an efficient system and can be used in grid balancing and smart contracts. Blockchain can also be used to provide customers with greater transparency over the renewable energy they use and more than 3,000 UK homes signed up for this scheme in 2022 alone.
Decentralised Finance (DeFi)
Decentralized Finance (DeFi) is a range of financial services that have been built specifically for blockchain platforms. This provides a range of services to consumers without the need for traditional intermediaries. This provides a platform for decentralised lending and borrowing outside of the traditional banking system.
DeFi also facilitates decentralised exchanges that allow users to trade cryptocurrencies. Users can also provide liquidity to DeFi protocols as a form of yield farming so they can earn tokens.
As with other industries that make use of blockchain technology and cryptocurrencies, the DeFi sector benefits from simple cross-border transactions that don’t require exchange rates and additional fees as well as a high level of transparency and security.
The sectors mentioned above are just a handful that are utilising cryptocurrencies and blockchain technology to their advantage. The additional security and transparency also make it a great option for businesses that handle vast amounts of sensitive data including the health and legal industries.
The convenience, security, and rapid development of blockchain technology means it can be applied to a growing range of industries. The relative decline in cryptocurrency volatility also means more businesses are open to the idea of accepting the most popular options as forms of payment as well.