Over the years, Bitcoin has undergone a rock-star like persona; the poster child of the digital currency revolution. Cryptocurrencies have been raucous, due to the massive 4,500% surge in market capitalization between early 2017 and January 2018. This additionally catapulted the crypto sphere into a $138.6 billion market.
The industry’s big brothers have been quite vocal in showcasing
their skepticism towards cryptocurrencies. Although there has even been an open
show of contempt towards crypto with some terming it as worse
than tulip bulbs” and a bubble,
the skeptics, business leaders and technologists have not failed to notice the
potential of crypto’s backbone, the blockchain.
This open and shared database can be used in industries ranging from health, financial, shipping, mines, logistics and engineering among others. As the crypto sphere endures its bearish run, things have heated up in the blockchain world.
According to Lori
Beer, the Global Chief Information Officer (GIO) at J.P Morgan, blockchain is
going to replace
existing technology in a few years. She noted that blockchain today
only coexists with the current technology but it will replace it in a few
years.
J.P Morgan has now built a blockchain based payment platform and has signed up over 75 financial institutions to test it and make it market ready. Blockchain`s potential for a cross-industry broad ecosystem application has propelled it in the innovation foreground.
Usefulness of blockchain integration
Smart Contracts
A smart contract
has a predefined order of steps that have to be met for validation of
transactions. Once these steps are achieved, the next door of action will open
automatically. In the insurance industry, for example, this would assist in the
growth of peer to peer validations.
Building of static registries
Blockchain records can be stored for reference, eliminating, for
example, ambiguity in title ownership. Documents stored via blockchain are
immutable without the uncertainty witnessed with standard land title storage
systems. All records in the blockchain network are time stamped and there is a
transparent and traceable path of origin. This system is of supreme value to
the storage of patents, original ledgers, research records or food safety
records.
Identity
Blockchain’s
Creating functional
payment and dynamic registries
This feature works
very well for drug supply chains and cryptocurrency payment networks. It helps
in mapping all stops and movements of assets on a digital platform.
Furthermore, it helps to stop counterfeits.
Blockchain has sparked a lot of Research and Development, and
innovation across most Fortune
500 companies ranging from finance to the retail sector. The financial
sector was the first to adopt to blockchain technology and with good cause.
Blockchain technology sounded the death knell for most financial
services businesses because it eliminates third-party players. Shipping,
automobile, aviation, and telecom companies have quickly caught up
commensurably. Today, most multinationals are investing and filing patents for
blockchain based innovation, and some are at the implementation stage.
The
adoption and integration of blockchain innovation by industry
Financial Services
MasterCard, Goldman Sachs, Visa, American Express, Citibank and J.P Morgan are to name but just a few, financial institutions that are carrying out pilots and tests on blockchain based innovations. American Express has filed for a patent for a unique rewards program that utilizes record keeping.
It will compensate its new customers with cryptocurrency for
reward points. This reifies the power of the blockchain. Visa, on the other
hand, is
running a pilot called “B2B Connect“, a blockchain based business
payments service. MasterCard’s
patented innovation will enhance payment processing speeds.
Automobile
Volkswagen and Renault are equally innovating in the field of vehicle telematics tracking. This system captures a vehicle’s data on mileage, maintenance and repair; and the engine usage history via the blockchain. Manufacturers, buyers, insurance companies, and dealers can then access information pertaining to the vehicle with accuracy. Toyota, on the other hand, is building a decentralized exchange for purchasing and selling independent data on vehicle driving.
Shipping and aviation
Maersk is innovating on ways of tracking cargo and freight
movement. Airbus
is also innovating on jet plane tracking while Lufthansa
has a user blockchain based app. Airfrance is working on a distributed database
for its supply chain, one that tracks aircraft maintenance workflow systems as
well.
Blockchain enhances transparency and security in shipping
perishables in the industry. It enables
companies to keep records of shipments right from the entry data points, size,
weight up to the shipment location. Each shipment can be tracked at every level.
Data is decentralized and information stored across diverse locations thus
making it impossible for individuals to tamper with the records.
Retail
Walmart has its sights set on tracking the movement of supplies from China. Alibaba, on the other hand, is developing a blockchain network to monitor the authenticity of products on its supply chain to eliminate counterfeits.
Blockchain bridges the gap on trust for consumers. It offers
consumer- based possibilities that enhance the shopping experience. Under
retail, it has several use cases in the areas of management of loyalty points,
fraud prevention and product provenance.
Online Data Ownership
Social media platforms have recently gone through cases of
data breach. Major giant platforms in the industry such as Google, Facebook and
other tech platforms have to contend with data
privacy and responsibility of data protection.
Blockchain thus comes in handy in tackling the issue of data
protection. Blockchain allows the option of locking self-governed digital
identity with a private key. Vetri, a
blockchain data marketplace, allows marketers and other consumers to buy
anonymized data from users who sell it willingly. Once the sellers release the
data from their digital identity wallets, they receive their payments via
cryptocurrencies.
Conclusively, Blockchain technology is still on its early stages of evolution. The giant steps taken so far towards a decentralized future full of trust and security is exciting and worth all the investments placed on it.
Featured image via BigStock.
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