Restructuring An Ecosystem And Displacing Established Players Is The Classic Pattern Of Innovative Disruption
The use cases for the technology in financial services include cross-border payments, smart contracts, and online identity management. However, blockchain has potential pitfalls and is still far from mainstream financial services.
While its constructive to have a glass half full outlook on the technology, its also necessary for financial services leaders to adopt a skeptical glass-half-empty perspective based on significant limitations in the current generation of technology, combined with lack of understanding by many in the industry about the radically decentralized nature of this technology, says Ray Valdes, vice president and fellow at Gartner. To understand the technologys potentials as well as shortcomings, start with the fundamentals.
Clearly The Future Lies With Blockchain Technology
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Will Blockchain Disrupt Financial Services
Contributor: Sarah Morris
Blockchain, as a radically decentralized technology, has great disruptive potential, hampered in the short term by technical limitations and lack of understanding.
Twenty years ago, banking business involved a trip to the brick-and-mortar office to speak with a real person working at the bank. Now, customers can monitor accounts, transfer funds and deposit checks without leaving the couch. Digital technologies have become mainstream in the financial world, whether its mobile banking or roboadvisors.
The newest innovation, blockchain, offers a potential new era in financial services. With its global-scale, technology-driven business transformation, some experts believe it will eventually have an impact equivalent to that of the World Wide Web, or of the internet itself. Hence, blockchain is sometimes referred to as the Internet of Money or in more general terms, the Internet of Programmable Value.
Bitcoin is a form of digital currency and blockchain is the colloquial name for the distributed ledger technology that underpins it, providing a trusted, immutable record of transactions.
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Music/entertainment Rights & Ip
Entertainment entrepreneurs are turning to blockchain technology to make content sharing fairer for creators using smart contracts, whereby the revenue on purchases of creative work can be automatically disseminated according to pre-determined licensing agreements.
Muzika, a blockchain-based music streaming platform, partnered with Binance, a crypto-exchange network, to try to help independent artists make money from their listeners. Muzika has stated that it plans to give 90% of revenue to the artists.
In 2017, Spotify acquired blockchain startup Mediachain, which had been developing a decentralized media library, to better identify the rights holders of songs on Spotifys platform for royalties payments.
UK-based blockchain startup JAAK also has plans to work with music rights holders and other entertainment industry stakeholders. JAAK, which provides an operating system for content, is developing a platform that allows media owners to convert their repository of media, metadata, and rights into smart content that can self-execute licensing transactions on the Ethereum blockchain.
Publishing & Content Creation
The creative industries of content creation and publishing currently face a spectrum of problems, ranging from unauthorized usage, licensing, and rights, to author payments, content provenance, and the centralization of the publishing industry. The long chain between content creators and their audience is impeded by middlemen, licensing bodies, and distributors that cut into author payments.
However, the adaptable, programmable, and transparent nature of blockchain technology is positioned to heavily disrupt the publishing industry in a variety of ways. The most obvious application of blockchain technology in publishing is the circumvention of the traditional publishing model. The ubiquity of the internet now allows unique content to capture attention based on quality alone, which creates the opportunity for decentralized peer-to-peer content marketplaces that reward authors directly.
Po.et aims to do exactly this, working toward the creation of a decentralized protocol that facilitates the establishment of ownership over content as well as content discovery and monetization. Po.et allows authors to generate immutable titles for creative works and register them on a dedicated blockchain, delivering verifiable metadata attribution. In addition to helping authors publish and protect their content, Po.et also allows users to establish their own licensing terms and distribute their work via an open network.
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Industries That Blockchain Will Likely Disrupt By 2020
Today, around 80% of banks are developing their own blockchain technology.
In September 2016, Barclays carried out the worlds first trade transaction using blockchain. They cut a process that normally takes 710 days down to less than four hours.
IBM is working with the government of Dubai to develop smart contracts that can facilitate all trade that passes through its port. This is huge, given $344 billion worth of goods passed through the port in 2016. Dubais government said it plans to shift all transactions to blockchain by 2020.
Nasdaq is also in on the action.
The real value of blockchain is that it renders intermediaries obsolete. They make a living off being a third party that establishes trust between parties unknown to each other. Blockchain replaces these middlemen.
This is the reason the worlds biggest firms are investing in blockchain. They are trying to become the disruptor, not the disrupted.
Blockchain is a foundational technology like the Interneta big system on top of which you can build applications.
To give you a better sense of the thing, heres just a smattering of existing businesses that could find themselves on the wrong side of the proverbial ledger.
What Industries Could Blockchain Disrupt?
Banks are essentially secure storehouses and transfer hubs for money.
Clearinghouses and stock brokers are also in the firing line, for the same reason.
Supply Chain Management
Cloud Computing & Storage
Cloud services require vast computational resources and data storage capacity, which can be inefficient when it comes to launching IoT products. Blockchain technology can help facilitate more decentralized cloud services, increasing connectivity, security, and computational power.
For example, Salesforce, which provides cloud solutions for businesses, has launched Salesforce Blockchain. The product builds on the CRM software Salesforce is known for with smart contracts and blockchain-based data sharing.
Enterprises that offer cloud storage often secure customers data in a centralized server, which can mean increased network vulnerability from attacks by hackers. Blockchain cloud storage solutions allow storage to be decentralized and therefore less prone to attacks that can cause systemic damage and widespread data loss.
Dubbed the Airbnb for file storage, Filecoin is a high-profile crypto project that rewards the hosting of files. This could help create a decentralized version of S3 from Amazon Web Services.
The company behind it, Protocol Labs, has garnered investment from Union Square Ventures, Naval Ravikant, and the Winklevosses, among a number of prominent names. But Filecoin is just one of many projects in this area, and other token names in storage include Storj and Siacoin.
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Business Funding & Hr
Many processes in business can be automated and tracked using blockchain technology, but a recent use case for blockchain helps businesses from the very beginning. New businesses are increasingly opting to launch initial coin offerings and token sales in order to support their initial business ideas, sometimes with the ability to reach a wider range of investors.
Similarly, human resources departments are poised for disruption. Blockchain technology can reshape some of the core facets of HR, including payroll, recruitment, competency management, and learning, according to Deloitte. Finance
Finance is among the leading industries that blockchain stands to disrupt. At first glance, digital currencies probably come to mind. But blockchain is reaching much deeper into the finance industry. Blockchain enables microfinance, such as microloans opens opportunities for new structures within the insurance sector and impacts asset management, clearing, and settlement. Even now, major financial institutions across the globe have begun experimenting with blockchain technology.
What Industries Will Blockchain Disrupt
Blockchain, popularized by pseudonymous Satoshi Nakamoto in his white paper Bitcoin: A Peer-to-Peer Electronic Cash System, is a decentralized database that is immutable and continuously reconciled. While Bitcoin made blockchain famous, what Satoshi may or may not have known is that blockchain technology would gain disruptive power on the level of electricity and the Internet, infiltrating the processes of nearly every industry of the world. Blockchain technology offers a wide array of benefits for companies that need to exchange or verify data, keep tamperproof logs, maintain transparency, track transactions, or efficiently reconcile records. Below are ten industries that are utilizing blockchain to great effect.
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Blockchain Industry Disruption Is Just Starting
Although still in its nascent stage, blockchain is a foundational technology with the potential to disrupt many different industries over the next five to ten years. At its core, blockchain is a distributed ledger technology that provides a safe way to record and transfer data that is transparent, auditable, and continuous.Innovative ways companies are harnessing the power of global blockchain.
From startups to large enterprises, blockchain is being utilized to provide greater transparency across many industries.
Banking and Payments Many believe blockchain will democratize banking just as the internet has with media and information. It could give billions of people around the world access to financial services, including those in the Third World without traditional bank accounts. The blockchain could also enable cross-border payments and transactions, that occur instantaneously and for a reasonably low fee.
Cyber Security Although data on the blockchain is public, the data is verified and encrypted using advanced cryptography techniques. Data is less prone to being hacked or changed without permission.
Internet of Things The blockchain could facilitate a decentralized network of IoT devices, operating like a public ledger, thus eliminating the need for a center of communications. Devices would communicate with each other, potentially with the assistance of Artificial Intelligence in order to update software, manage bugs, and monitor energy use.
Low Fees And Fast And Secure Transactions
This is the most common use case for blockchain technology because there are cryptocurrencies, such as Bitcoin, that act as both a digital currency as well as a platform to send payments. The transactions with Bitcoin and other cryptocurrencies are simple, fast, and anonymous. It only requires the recipient’s crypto address, and the transactions can be processed without hurdles. These transaction costs are minuscule, starting at just a few cents, and are very secure because of the utilization of both private and public keys to ensure authenticity and integrity.
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The Real Estate Industry Could Be Revolutionized
For anyone who has ever run the gauntlet of buying a property, they will know full well how much paperwork and bureaucracy are involved. This can be a real headache and can also slow the process down to a snail’s pace.
Real estate is an area where blockchain technology could work wonders to speed up transactions and conveyancing of property deeds between parties. By using blockchain, all necessary documentation and other transaction records could be stored securely for all authorized parties to access when required.
Piper Moretti, CEO of the Crypto Realty Group and licensed realtor, also believes the use of blockchain can also potentially eliminate the escrow process. This is because it could be used to create smart contracts where funds are only released when certain conditions are met.
It could also help save buyers and sellers from paying exorbitant fees from various professionals in the current process.
Rentals And Ride Sharing
Existing ride-sharing companies like Airbnb, Uber, and Lyft can also disrupt by the instruction of a true peer-to-peer network on the blockchain. However, blockchain peer-to-peer sharing will completely eliminate the need of a middleman. With blockchain renting and borrowing could include anything from homes, books, cars to furniture and beyond.
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Here Are 10 Industries Blockchain Is Likely To Disrupt
2 July 2021
Youve probably heard that blockchain technology is going to revolutionize fill in the blank. But what actually is it and how is it going to disrupt these industries?
In simplest terms, blockchain refers to a decentralized database. If you think of a traditional database like a spreadsheet, running on a single computer, blockchain distributes that so the spreadsheet runs on millions and millions of computers. It also uses state of the art cryptography, so that once information goes in, it is virtually impossible to get it out again without the original passcode or key.
The real disruption here is that trust is established through collaboration and code, rather than a central authority. So you no longer need a bank to make a money transfer around the world. You no longer need an escrow account to buy a home, or a real estate agent to facilitate the transaction. You no longer need a company or central authority to facilitate a transaction of any kind. That is revolutionary and has the potential to revolutionize nearly every industry. But here are some of the most likely:
Rentals and Ride Sharing
Charities and Aid Organizations
These are just some of the industries that are likely to see significant disruption from blockchain technology. What opportunity do you see for blockchain to disrupt and improve your industry?
The Real Estate Industry
Any individual who has at any point bought or sold a home precisely understands how much desk work is associated with a real estate business. Blockchain technology can totally change the headache that these paper works cause. By utilizing blockchain, the entirety of the reports and trade records can be kept safely with relatively more minor work and less expense. As per Piper Moretti, CEO of the Crypto Realty Group and an authorized realtor, the utilization of blockchain can possibly wipe out third-party interactions.
This system can generate smart contracts that provide financing only when the terms and conditions are fulfilled. Moreover, numerous individuals who have spent time working with a real estate agent understand how baffling the commission rates can get, with some even charging around 6 %.
The cryptocurrency-powered setting is looking forward to changing this situation.
Blockchains disseminated design gives power back to property holders and purchasers by tokenizing the procedure and removing brokers, mediators, or negotiators that block direct communications among agents and clients.
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Internet Identity & Dns
In the current web, its difficult to establish your true identity, and your personal information lives on company servers for apps you use with little inter-operability . Platforms like Serto think theres a future where your identity can be easily carried with you around the internet.
IBM offers a blockchain-enabled identity management tool called IBM Verify Credentials. The decentralized system allows certain trusted organizations to issue credentials to users, who can then use the credentials to prove their identities to other organizations, enhancing personal privacy and streamlining the verification process.
Construction Architecture & Building
Construction is a highly regulated industry that employs a wide variety of tradespeople for often complex projects. Validating their identities, their quality of work, and their dependability can be difficult and time-consuming. A blockchain-based ecosystem could help solve this challenge by making it simpler for general contractors to verify identities and track progress across multiple teams.
Blockchain technology could also help ensure construction materials are sourced from the right places and are of the appropriate quality, while smart contracts may make it simpler to automatically issue timely payments linked to project milestones.
For instance, Amsterdam-based construction company HerenBouw used a blockchain to document transactions over the course of a large development project in the city, creating a more accurate, auditable record of the orders placed and paid out.
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Politics And Voting Could Be Changed With Blockchain
Another area that blockchain could change things forever is in the realm of politics and voting. With vote-rigging allegations becoming ever more common, perhaps the answer could be blockchain.
No longer would this really be an issue as voting registers could be created that would be safe from being manipulated. It could also be used for the actual voting process and ensure results are accurate and true.
Recounting would be a thing of the past.
The Legal Industry Will Also Be Shaken Up
In some way linked to real estate, the rest of the legal industry could also be disrupted by the use of blockchain. The ability of it to enable professionals, and clients, to store and verify documents and other data could be revolutionary.
“For example, litigation dealing with resolving concerns over wills of the deceased or any other documentation can be eliminated.
Records stored on the blockchain will be quickly and securely verified. Any changes to the documents will be authenticated and stored.” – inc.com.
Other areas like dealing with inheritance issues could lead to the development of cryptocurrency assets in the long run. It could also eliminate lengthy court battles.
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