Blockchain technology will change the world

Blockchain technology can enhance the basic services that are essential in trade finance. At its core, blockchain relies on a decentralised, digitalised and distributed ledger model. By its nature, this is more robust and secure than the proprietary, centralised models which are currently used in the trade ecosystem. Blockchain technology creates a viable, decentralised record of transactions — the distributed ledger — which allows the substitution of a single master database. It keeps an immutable record of all transactions, back to the originating point of a transaction.

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Content:

• Blockchain and the future of accountancy
• Is the early promise that blockchain will change the world getting closer, or is it a dream?
• Socio-Technical Considerations for the Use of Blockchain Technology in Healthcare
• 'Blockchain technology will change the world': Fidelity Labs SVP
• Blockchain explained: Breaking down the technology that’s transforming the world of finance
• Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World
• The impact of blockchain technology on finance: a catalyst for change

WATCH RELATED VIDEO: How Will The Blockchain Technology Change the World and Your Life - Documentary

Blockchain and the future of accountancy

The future of blockchain is near and banking isn't the only industry affected. See how law enforcement, ride-hailing, and others could also be impacted.

What began as the basis of cryptocurrencies such as Bitcoin, blockchain technology — essentially a virtual ledger capable of recording and verifying a high volume of digital transactions — is now spreading across a wave of industries. Industries from insurance to gaming to cannabis are seeing blockchain applications. Ultimately, the use cases for a transparent, verifiable register of transaction data are practically endless — especially since blockchains operate through a decentralized platform requiring no central supervision, making them resistant to fraud.

Download our free report to get all the trends. Here are the latest innovative ways companies are harnessing the power of blockchain. Blockchain and banking are just the beginning. From a macro perspective, banks serve as the critical storehouses and transfer hubs of value. As digitized, secure, and tamper-proof ledgers, blockchains could serve the same function, injecting enhanced accuracy and information sharing into the financial services ecosystem.

Credit Suisse , for example, partnered with New York-based startup Paxos to use blockchain tech to settle US stock trades in March Meanwhile, JPMorgan Chase has entered the blockchain space with the JPM Coin, which it intends to use to facilitate transactions between institutional accounts. Other banks like Goldman Sachs and Citigroup have also experimented with blockchain. However, blockchain technology offers a secure and cheap way of sending payments that cuts down on the need for verification from third parties and beats processing times for traditional bank transfers.

Blockchain company Ripple has partnered with over customers, including financial institutions like Santander and Western Union , with the goal of improving the efficiency of cross-border payments.

Its xCurrent product provides banks with a two-way communication protocol that permits real-time messaging and settlement. For more on how banks will use blockchain — for everything from trade finance to customer KYC and fraud prevention — read our explainer here. For years companies have worked to ease the process of buying, selling, and trading stocks, and now new blockchain-focused startups are looking to automate and secure the process more efficiently than any past solution.

The tZERO platform integrates cryptographically secure distributed ledgers with existing trading processes to reduce settlement time and costs and increase transparency and auditability. Partnerships with existing trading networks and exchanges will help blockchain take off in the space.

Meanwhile, Numerai is taking the hedge fund model — employing a bunch of traders and quants — and decentralizing it. Then, Numerai takes the strategy and creates a meta-model to make trades. In October , Numerai announced a new project, called Numerai Signals, that will accept signals from models trained on any dataset, not just its own.

Initial Coin Offerings ICOs , in which companies sell cryptocurrency-backed tokens in their companies in the same manner as a publicly traded company sells stock, are another example of blockchain-powered crowdfunding. Companies like CoinList , which began as a collaboration between Protocol Labs and AngelList, are bringing digital assets to the mainstream by helping blockchain companies structure legal and compliant ICOs.

As projects reach target funding, money is transferred to a secure escrow wallet that unlocks funds gradually. Backers can see how the money they invested is being spent and can provide input about the direction of the project, e. One way blockchain reduces conventional cybersecurity risk is by simply removing the need for human intermediaries — thus lessening the threat of hacking, corruption, or human error. Ironically, some of the most successful blockchain companies are fairly centralized middlemen.

Enigma is the developer of Catalyst, an off-chain decentralized exchange and investment platform that works without the need of a third party to act as a clearinghouse. Centralized exchanges like Binance and Coinbase have made moves in the decentralized exchange space, launching Binance DEX in and acquiring the peer-to-peer trading platform Paradex in , respectively.

Wills are a highly specific kind of contract, providing an ideal use case for a blockchain smart contracts solution. While the application of blockchain tech would not completely remove these challenges, it would make it easier to identify factual information, provide verifiable transaction data, and dismiss claims that are without merit. As the banking industry continues to adapt to cryptocurrencies and blockchain technology, accountants are beginning to follow suit.

Accountants work with a spread of documents — from tax forms to bank statements to spreadsheets — containing extensive personal or organizational information.

Layering in blockchain technology could make it easier to keep track of this sensitive data as it is processed by accounting firms. Data tracking enabled by blockchain technology may also help to automate certain accounting services using AI, which could reduce human error and instances of fraud. Traditional banks and lenders underwrite loans based on a system of credit reporting. This centralized system can be hostile to consumers.

Further, concentrating this sensitive information within 3 institutions creates a lot of vulnerability. The September Equifax hack exposed the credit information of nearly M Americans. Alternative lending using blockchain technology offers a cheaper, more efficient, and more secure way of making personal loans to a broader pool of consumers. With a cryptographically secure, decentralized registry of historical payments, consumers could apply for loans based on a global credit score.

A number of companies are working in this space. Dharma Labs , for example, is a protocol for tokenized debt. It aims to provide developers with the tools and standards necessary for building online debt marketplaces. Meanwhile, Bloom wants to bring credit scoring to blockchain and is building a protocol for managing identity, risk, and credit scoring using blockchain technology.

Most blockchain applications in the insurance industry today are focused on improving operational efficiency. Rather than developing new products, insurance companies are looking at ways blockchain can drive down costs, increase speed to market, and provide better customer experiences.

For example, using a blockchain to create a single source of truth for transactions between parties has the potential to significantly drive down processing time and costs for insurance companies. Many insurance blockchain initiatives include cross-border partnerships or deal with cross-border transactions, leveraging the immutability and version control aspects of blockchain tech. Insurwave , a joint project between consulting firm EY and blockchain company Guardtime , delivers a blockchain platform aimed at marine insurance.

Clients can read more about 12 blockchain pilots in insurance here. Recording physical assets — like auto parts — on a blockchain is a prime example of where the technology might come in handy to track ownership with a tamper-proof, neutral, and resilient system. Blockchains could be used to track parts in a supply chain and weed out those that are counterfeit.

The tech also has major implications for automotive recalls, of which there were 13M in just the first half of With a record of where parts have gone, from the supplier to the individual vehicle, blockchain could enable targeted recalls.

In another example, Daimler has partnered with Singapore-based Ocean Protocol , a decentralized data exchange, to explore how blockchain could be used to share supply chain data among its manufacturing hubs and partners. The experience of leasing, buying, or selling a vehicle is a notoriously fragmented process for stakeholders on all sides of a transaction, but blockchain could change that.

Today, companies like Estonia-based carVertical are deploying blockchain tech to more reliably track car histories for users looking to buy a used car.

CarVertical logs data on vehicles from a variety of sources, including leasing and insurance history, in a single ledger. Ride-hailing apps like Uber and Lyft represent the opposite of decentralization since they essentially operate as dispatching hubs and use algorithms to control their fleets of drivers and dictate what they charge.

Blockchain could inject new options into that dynamic: with a distributed ledger, drivers and riders could create a more user-driven, value-oriented marketplace.

Arcade City , for example, facilitates all transactions through a blockchain system. Arcade City operates similarly to other ride-hailing companies but allows drivers to establish their rates taking a percentage of rider fares with the blockchain logging all interactions. This allows Arcade City to appeal to professional drivers, who would rather build up their own transportation businesses than be controlled from a corporate headquarters: drivers on Arcade City are free to set their own rates, build their own recurring customer base, and offer additional services like deliveries or roadside assistance.

Arcade City announced in January it would make its code open-source to enable more peer-to-peer commerce. Another blockchain-based ridesharing app is Drife. The startup currently operates in Bangalore and is planning to launch in more cities across India. Instead of paying a fee on every fare, Drife drivers pay an annual fee to use the app.

And while many of the other industries discussed involve public records, private blockchain networks offer their own possibilities. The Blockchain in Transport Alliance BiTA has been formed to develop industry standards and educate its network of members. Blockchain can improve transactions, shipment tracking, and fleet management, as well as protect assets and increase fleet efficiency. It can help track contamination in food, for example, by tracking a truck that carries ingredients and noting if safe storage conditions were maintained during any delays.

Additionally, it can help optimize routes by matching truckers and items to be delivered with trucks in a certain region. But for a decentralized ledger to work in this industry, there needs to be buy-in from every side: small and large businesses, last-mile shippers, and mega trucking companies. Blockchain technology has the potential to streamline parts inventory and authentication, personnel certification tracking, and more.

GoDirect Trade a unit of Honeywell Aerospace , for example, is an aerospace parts marketplace using blockchain to list parts for resale. Its ledger stores maintenance and manufacturing histories for each of its 25, parts in one location.

Meanwhile, to comply with NATO standards, France-based aerospace and defense contractor Thales Group is deploying blockchain at one of its new manufacturing sites to trace the naval equipment and other parts fabricated at the facility. Countries like Russia and the US are also making moves with blockchain. Think of the data that goes into booking a flight: names, birthdays, credit card numbers, immigration details, destinations, and sometimes even hotel or rental car information, depending on how flights are booked.

Transforming a material ticket into a digital token provides a new layer of security. Using a smart contract as part of the ticket token can help airlines control the sale and use of tickets to provide verified experiences for customers. It can also be used to create more accurate logs of aircraft maintenance, prevent overbooking, and more. For example, Russia-based S7 Airlines deploys a private, Ethereum-based blockchain and smart contracts to issue and sell tickets.

Airline loyalty is another area where blockchain is already being executed. This program rewards frequent fliers instantly and lets them securely use their points on a variety of purchases, not just additional flights. Blockchain technology can help cut out the middlemen, encouraging direct provider-to-consumer interaction and reducing costs. A number of companies are leveraging blockchain tech to allow any device to securely connect, interact, and transact independently of a central authority.

With ADEPT, a blockchain would serve as a public ledger for a massive amount of devices, which would no longer need a central hub to mediate communication between them. Without a central control system to identify one another, the devices would be able to communicate with one another autonomously to manage software updates, bugs, or energy management. More recently, companies like Helium and NetObjex have launched blockchain-based networks for IoT devices in internet infrastructure and smart city transportation, respectively.

Others are focused on IoT network security. As critical infrastructure like power plants and transportation all become equipped with connected sensors, there are privacy and security risks. Consequently, parts and products are easier to share and track — leading to smarter digital supply networks and supply chains.

Using blockchain to support these evolving infrastructures can eliminate security vulnerabilities, protect intellectual property from theft, and streamline project management, ultimately helping the 3D printing and additive manufacturing sectors to grow and scale. The blockchain-based platform registers and tracks 3D-printed parts for a more secure and tamper-proof record. Construction is a highly regulated industry that employs a wide variety of tradespeople for often complex projects.

Is the early promise that blockchain will change the world getting closer, or is it a dream?

Bitcoin is the most well-known example of blockchain technology, but it is joined by several early adopters. For instance, Google, Visa, and Deloitte are heavily investing in blockchain projects. Several global businesses are working towards blockchain-based services, including Spotify to manage copyrights, and IBM to build tracking tools for shipping companies and retail chains. The technology can also bring massive changes in other industries, including finance, voting, transport, healthcare, and more. The rise of blockchain will eventually bring about a revolution and change the world as we see it. Blockchain technology is still in its nascent stage, yet it has a significant impact on finance. While digital currencies have been responsible for bringing this technology to the forefront, the advantages are reaped by several industries.

Socio-Technical Considerations for the Use of Blockchain Technology in Healthcare

What impact could the technology behind Bitcoin have? According to Tapscott Group CEO Don Tapscott, blockchains, the technology underpinning the cryptocurrency, could revolutionize the world economy. In the early s, we said the old media is centralized. This has an awesome neutrality. It will be what we want it to be, and we can craft a much more egalitarian, prosperous society where everyone gets to share in the wealth that they create. Lots of great things have happened, but overall the benefits of the digital age have been asymmetrical. They monetize that data or, in the case of governments, use it to spy on us, and our privacy is undermined. What if there were a second generation of the Internet that enabled the true, peer-to-peer exchange of value? What if we could do that peer to peer?

'Blockchain technology will change the world': Fidelity Labs SVP

It is now a decade since the publication of the white paper that heralded bitcoin and the launch of the bitcoin blockchain. The last three years, in particular, have been a rollercoaster ride for the sector. During and early cryptocurrencies became much more mainstreams. This lead to hysteria and relentless fear of missing out being the rationale for many investors who entered the market during the third quarter of to the first quarter of

Blockchain explained: Breaking down the technology that’s transforming the world of finance

In bestowing this status on the technology, Gartner predicted that blockchain is still five to 10 years away from going mainstream, writing:. That list is decidedly smaller, but the real-world applications of this technology that are being developed, tested, and — in some cases — rolled out to the marketplace will play a critical role in shaping the future of blockchain development and determining just how quickly the technology goes mainstream. But before any of that will really make sense, some baseline background on blockchain is required. In its simplest possible form, blockchain is a digital platform for recording and verifying transactions. The paper outlines the process of creating a purely peer-to-peer version of electronic cash that can be sent directly from one party to another without going through a financial institution.

Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World

It is completely secured, unchangeable and continuously available. It remains open for reading or writing but has no supervising entity and no actor is assigned to operate it as it is autonomous. Insurers are interested in this technology which would allow them to better know their customers, increase their commitments, provide new and more reliable products, create insurance plans based on connected objects, and improve their efficiency in terms of management and settlement of claims. Moreover, this technology will make it possible for insurers to reduce costs and better detect fraud. FR EN.

The impact of blockchain technology on finance: a catalyst for change

Previously, she was…. He believes blockchain is likely to have a lot more staying power than popular cryptocurrencies like Bitcoin, which he calls a flash in the pan. Blockchain is the underlying technology that many cryptocurrencies — like Bitcoin and Ethereum — operate on, but its unique way of securely recording and transferring information has broader applications outside of cryptocurrency.

What is Blockchain? All parties can analyze previous records and register new ones. Transactions are classified in blocks, recorded one following the other in a chain of blocks. The links within blocks and their content are protected by cryptography, so previous transactions cannot be destroyed or forged. This indicates that the ledger and the transaction network are trusted without a fundamental authority. Security is everything, whether you are dealing with data, information or fund transactions, security appears to get preference.

It is now pretty well established that blockchain technology has huge potential - especially where online transparency and safety are concerned. In the grand scheme of technological applications, development, and even for every other sector out there, blockchain will be instrumental in the coming years and decades. Industry leaders are already heavily invested in this technology, and for very good reason. And, most people will associate blockchain technology with cryptocurrency like Bitcoin, but the fact is that the technology applies to a far wider spectrum than just digital currency. The truth is, blockchain tech is probably the greatest thing since sliced bread. This is why it is important to look at what exactly blockchain technology is, and what the applications are. Furthermore, what will the future hold for blockchain technology?

Blockchain will improve security, increase efficiency, and lead to new business models for enterprises, Nate McKervey believes this deeply. Nate is the head of blockchain and DLT at Splunk , and he spends his time helping enterprises gain insights and success when adopting this new technology. Early in his career, Nate worked for Harris Corporation using and interpreting data to troubleshoot and keep systems running.