Advantages and Disadvantages of Using Blockchain Technology
In 2025, several industries are actively leveraging blockchain technology to enhance transparency, security, efficiency, and trust. This cutting-edge technology, a distributed ledger used for tamper-proof information storage, offers benefits such as verifiability through zero-knowledge proof, immutability, and transparency.
Key industries and use cases include:
- Financial Services: Blockchain is widely adopted for payments, trade finance, cross-border remittances, and decentralized finance (DeFi). DeFi platforms offer financial services without intermediaries, while JPMorgan uses Quorum for syndicated lending. Central Bank Digital Currencies (CBDCs) launched by various countries modernize payments.
- Healthcare: Blockchain secures patient records and ensures drug traceability, enabling secure sharing with full audit trails. Projected to reach USD 214.9 billion by 2030, it supports tamper-proof medical data and drug provenance.
- Supply Chain & Manufacturing: Blockchain is used to track raw materials, ensuring provenance and ESG compliance, preventing counterfeiting. Ford uses blockchain to track ethical sourcing of cobalt for EV batteries, while food brands use it for product authenticity verification.
- Gaming & NFTs: Blockchain facilitates ownership and trading of digital assets like in-game items. NFT use has expanded to real estate, IP management, and immersive VR/AR. The gaming blockchain market is expected to exceed USD 65 billion by 2027.
- Defense & Cybersecurity: Blockchain enhances cybersecurity and data integrity to protect sensitive government and defense information. Lockheed Martin uses blockchain for cybersecurity, pioneering blockchain adoption in defense.
- Real Estate: Blockchain is used for tokenization of property assets, improving liquidity and transparency in transactions. NFTs are applied for property tokenization, enabling fractional ownership and easier transfers.
Additional context: - Blockchain interoperability is improving through cross-chain bridges and protocols, allowing seamless asset transfers and collaboration across different blockchain networks, thus expanding usability across these industries. - Enterprises often adopt private or permissioned blockchains (e.g., Hyperledger Fabric, Corda, Quorum) to meet privacy and regulatory demands while solving traditional problems of data integrity and trust. - Blockchain drives both consumer-facing solutions (transparent product data via QR codes, real-time authenticity verification) and back-end efficiencies (regulatory reporting, supply chain traceability).
The core benefits of decentralization, immutability, transparency, and security offered by blockchain are enabling transformative applications across diverse sectors, with substantial market growth projected through 2030. However, it's important to note that in some countries, the use of blockchain technology applications, particularly for cryptocurrency, is restricted due to legal issues. Despite its benefits, blockchain technology is still relatively immature, and widespread trust in it is lacking.
The first significant recognition of blockchain was in 2008 with Satoshi Nakamoto's paper titled "A peer-to-peer electronic money system." Since then, blockchain has come a long way, revolutionizing various industries and promising a more secure, transparent, and efficient future.
- Investopedia
- MarketsandMarkets
- Forbes
- Investopedia
- Lockheed Martin
- As data-and-cloud-computing evolves, the integration of blockchain technology is expected to provide significant advancements, especially in sectors like cryptocurrency, as shown by the increasing adoption in the financial services industry.
- In 2030, the market value for blockchain technology is projected to reach impressive heights, particularly in industries such as healthcare, supply chain & manufacturing, gaming & NFTs, and real estate, while the immature state of the technology and lingering legal issues related to cryptocurrency usage continue to pose challenges.
