Blockchain is a fintech favourite
Since the blockchain technology is open source and decentralised, miners can just build on the existing code without altering the original chain. If somebody has to tamper it, he will have to re-write the complete history immediately.
That’s impossible to accomplish, making blockchain the most secure way of storing values This is certainly something that is a huge hit with financial institutions who value transactions that have no hidden secrets.
Companies like MasterCard have already announced that they will be using blockchain technology in their company’s strategy.
Blockchain makes peer-to-peer possible
Through blockchain technology, companies have the opportunity to significantly cut down on intermediaries. Peer level buying and selling is being made possible in sectors like power and energy.
Consumers who produce solar power can sell excess through smart contracts. There are also several transactional costs that can be avoided since money does not have to go through multiple institutions. There may be user fees along the way but even that isn’t as high as other financial costs can be.
Imagine money moving hands without a PayPal or a bank. That’s the power of blockchain.
Blockchain is being backed by the biggies
The biggest argument against blockchain is that the investors are already backing out of its mainstream application – cryptocurrencies.
There are no regulators and the currencies are not backed by real world assets. These naysayers don’t separate the technology from its application. Blockchain is a technology and it is far bigger than Bitcoin or any other crypto.
IBM is researching its application in association with some of the biggest banks – Commerzbank, Bank of Montreal, CaixaBank and Erste Group.
Blockchain eliminates verification
How often have you raised an invoice and waited forever to get it cleared? How often work gets stopped because somebody needs to authenticate an identity or verify a document?
With Blockchain, everything can be seamless. They won’t be a need for physical or human check. The ledger it creates is so full proof that payments or approvals can happen automatically thereon.
Robert Herjavic says.“I will walk somewhere and a sensor will automatically know it’s me, the sensor will be linked to my bank, it’ll know how much money I have, I’ll pick up something like at the Amazon store, it’ll automatically be scanned, and as I leave, it will automatically be verified and paid for.”
Blockchain has wide ranging applications across industries
From agriculture all the way to pharma, blockchain is set to revolutionise the way companies do business. It is changing the way supply chain is being run and the way financial transactions are being secured. It is bringing peer to peer exchanges and it is replacing century old centralised systems.
Insurance companies are testing its usage in claim processing. And Blockchain has only scratched the surface.
It will certainly be interesting to see where the blockchain will take us in the years to come. Until then, buckle in and keep your heads down because it’s going to be a bumpy ride to the top!