Fortune’s 30-second definition of Blockchain is quite simple “the blockchain is a way to structure data…This coding breakthrough—which consists of concatenated blocks of transactions—allows competitors to share a digital ledger across a network of computers without the need for a central authority. No single party has the power to tamper with the records: the math keeps everyone honest” Notice that the definition makes no mention of money. That is because blockchain technology can be applied to more than just monies. Currently, forty of the world’s top financial firms are experimenting with the technology; there have been over $1 billion invested in Bitcoin, the most popular form of blockchain.
Blockchain technology is set to disrupt over 20 industries. Companies are going to harness the power of the Blockchain in the next several years. One already is attempting too, Bit Bastion. The banking system as we know it is going to get a complete overhaul. They will incorporate private Blockchain powered technology to create cryptographic ledgers to enable banks to deliver secure end-to-end financial systems.
Money transfers as we know it will be powered by Blockchain. Blockchain will create a more direct payment flow across the globe. There will not be any intermediaries to charge high fees.
Blockchain is also able to reduce conventional cybersecurity risk by removing the need for human intermediaries. This instantaneously lowers the potential security concerns from hacking to corruption. Blockchain technology will even be used in schools, to authenticate academic certificates. There will be no way to falsify student accreditation, not to mention the cost-savings potential.
Credit Suisse, recently conducted a project to demonstrate the potential of the blockchain, here are their findings: “This project demonstrates the potential for blockchain technology to fundamentally reshape the syndicated loan market and the capital markets more broadly,” said Emmanuel Aidoo, head of the distributed ledger and blockchain effort at Credit Suisse. “This demonstration sets us on a path to increase efficiency and reduce costs, which will benefit banks and clients alike. By connecting a network of agent banks through blockchain, we can achieve faster and more certain settlements in the loan market.”
Throughout the world, nations are shying away from globalization and leaders promising an isolationist agenda are receiving more attention and votes… only look at the rise of party leaders like Donald Trump and Nigel Farage (the leader of UKIP and the Brexit movement). Some experts believe that technology could not only save globalization but spur it. In a world where everything from good and services to people will exchange almost instantaneously, blockchain will allow us to keep track of everything and one. “By translating the language of the legal chain into a digital language — an achievement that required us to develop a set of 21 typologies — we have created a system that could locate and capture any ledger in the world and make it public.”
For coming weeks our blockchain team will explore the wonders and capabilities of this increasingly prominent technology. In the coming weeks, our team will discuss how blockchain will impact the banking industry, cyber security industry, academia and more. We have already seen the capabilities of the blockchain, Bitcoin and Silk Road. However, for our first post, we thought it was paramount that we stress blockchain has more implications than transforming the way you send and receive money.
There are many questions associated with a technology like a blockchain. How long until central banks adopt the technology? How much money could be saved or even lost? What industries are set to benefit the most? Who will be left behind and who will prosper? How will blockchain shape our world? This technology has endless applications, and we only see the first stages of it. Much like the Wright brothers who were pioneers of flight; we will be the pioneers of the blockchain.