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How the Blockchain is Changing Money and Business

How the Blockchain is Changing Money and Business

Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.

– Vitalik Buterin, co-founder of Ethereum and co-founder of Bitcoin Magazine

There is no consensus on blockchain technology. Some see it as a solution to countless problems, others deem it a bubble and a hoax. Meanwhile the interest in and applications of blockchain have continued to grow for over a decade. Investors have welcomed crypto as an opportunity to diversify their portfolio. Statistics draw the picture of a bright future: according to a PwC Blockchain survey, the technology is expected to generate $3 trillion in annual business value by 2030. 

How Blockchain Works

What is Blockchain? Blockchain is actually pretty simple to understand when you find good analogies. It can be viewed as a shared database with encrypted entries confirmed by P2P networks. Or imagine a shared text document, where each entry is based on previous entries and is agreed to by every participant in the network. The core idea and benefit of blockchain technology is decentralization, which has huge application potential across industries. Prominent tech companies could use blockchain to build decentralized apps for businesses, financial entities, and governments. Here are some use cases and opportunities.

Industries Blockchain Could Transform

  • Finance and banking. Blockchain is a demonstrated solution for secure international payments. Specifically, as a tamper-proof log. Business Insider reported on the impact of blockchain adoption at four banks. In 2018, Santander bank launched a blockchain-based money transfer service. Blockchain reduced the number of intermediaries, the cost of transactions, and made the processes fully-automated and smooth. The bank’s clientele, which transfers money internationally, appreciated the new approach.

“Bitcoin is a technological tour de force.”

—Bill Gates, co-founder of Microsoft, investor, and philanthropist

  • Management of supply chain. Blockchain transactions generate a distributed record of transactions that cannot be changed or altered after the transaction. This record can be used as a real-time tracking tool; A system can be set up where goods generate blockchain “transactions” as they move through the supply chain, allowing tracking, queuing, and directing of goods to various shipping containers, ground transportation, and final destinations in real time. Furthermore, these records can be analyzed to find new ways to optimize the entire supply chain.
  • Healthcare. Hospitals, clinics, and medical staff handling patient data face many administrative obstacles and regulatory burdens.  Every doctor visit adds to our cumulative medical records, which are ideally comprehensive, accessible, and secure. Using blockchain, medical institutions can automate record keeping, remove human error associated with record keeping (which happens quite often), keep medical records safe, yet readily accessible. Fast recall, privacy, and data sharing can significantly improve healthcare services qualitatively and quantitatively.
  • Real estate. Blockchain technology can expedite  home sale by speeding up financial verification. Some people move more frequently than others—every 5-7 years. In this case, the distributed ledger would come in handy. Blockchain can make the purchasing process  encrypted, secure, and transparent at every stage.
  • Media and entertainment. In addition to significant cost reduction, media companies use blockchain projects to minimize fraud and protect their intellectual property. MGM studios recently began using the Eluvio Content Fabric platform to deliver video content directly to consumers—bypassing content delivery networks—and offer products and services directly on the content.

Blockchain technology is constantly evolving, and so are opportunities to apply blockchain. Blockchain-based messaging apps such as BeeChat, Status, BMC, e-Chat, and Dust guarantee decentralized communication networks, privacy, and full anonymity.

Then there is ride sharing. Normally, incentives and rules are controlled by centralized platforms. Blockchain-based solutions would bring more transparency and fairness, with rules and regulations coded into smart contracts. Smart contracts are always available to all members of the platform and therefore can be reviewed at any time. A governance mechanism executes the changes—removing human bias and error..

Bitcoin is a remarkable cryptographic achievement, and the ability to create something that is not duplicable in the digital world has enormous value.

— Eric Schmidt, former CEO of Google, and former Executive Chairman of Alphabet

Blockchain in Government

  • Taxation. Filing and processing taxes are tedious and boring procedures, with serious consequences from human error. Things get much easier if the data is safely stored in blockchain.
  • Public records. Executive bodies at all levels face issues with human error in recording keeping, public access to information, requests for modification of records, privacy of sensitive information, and information technology security. Blockchain removes slow and error-prone manual recordkeeping, speeds up fulfilling records requests and record modification, and ensures privacy and security.
  • Voting. In many countries, the voting process lacks transparency and is prone to irregularities and corruption. As a consequence, people have lost their faith in voting. Blockchain can restore transparency, security, and ultimately faith by making votes immutable. Blockchain’s distributed ledger is resistant to hacking, as hackers cannot access other nodes even if they access the terminal. There is no chance of ID forgery, as each vote is attributed to one specific person.

This rapidly changing and fast-paced world puts a huge pressure on businesses. Moreover, the pandemic and social distancing will set the trends for entire industries, defining their future development. Either you transform or you die. Companies must prove their value to local communitiesclientele and partners alikeand remain flexible. Technologies such as blockchain provide the agility and capability needed for a business in the next five years.

— Vlad Medvedovsky, Founder and Chief Executive Officer at Proxet, custom software development solutions.

Whatever niche your company operates in, there is always room to improve user experiences and optimize processes. Opportunities for innovation and new business ideas are boundless. Choose the digital partner who knows your business goals, comprehends your philosophy, and shares your values. This is the foundation for successful blockchain business applications.

Proxet’s requirements analysis and roadmapping processes look deeply into the business goals and pain points of a company. Supported by knowledge of blockchain, AR/VR, AI, big data, mobile and other areas, our teams deliver original solutions and tangible results.

How the Blockchain is Changing Money and Business