More than a decade ago, cryptocurrencies had first entered the scene. Since then, they continue to be in news, and fintech industry, by and large, dominated by the news surrounding cryptocurrencies. This, despite the fact that, very few actually have started buying digital coins.
Among the cryptocurrencies, bitcoin was the first to arrive. There was an unprecedented media frenzy around it. Soon, other digital currencies arrived. What made this possible?
Blockchain was behind this proliferation of digital currencies including the bitcoin.
Blockchain is the real thing. And some companies, including the IBM, kept their attention fixed on this, instead of being blinded by all the fuss around the cryptocurrencies.
IBM describes blockchain as ” “a shared immutable ledger for recording the history of transactions.”
Some experts consider this definition too simple. This definition does not capture the massive disruption blockchain has brought in the fintech industry. Blockchain is more than this simple definition, as many old business models have been rendered irrelevant by this disruptive technology.
We will have to wait for some more times to be for sure that all these changes brought by the blockchain are permanent or temporary in nature. However, there are enough indications that this disruption has transformed many industries.
It is highly unlikely that they will go back to their old models. Blockchain is here to stay, and it will evolve into more sophisticated model very soon.
These three industries stand to reap maximum benefits by embracing the blockchain technology:
When the Bitcoin arrived, many had speculated that the traditional banking sector would not be able to withstand the disruptive potential of this. However, things turned out differently. Banking sector has emerged as one of the enthusiastic adopter of blockchain-based solutions.
Blockchain has become the integral part of banking sector. Banking sector now offers many new services based on blockchain. Digital payments, asset transfer, trade finance, data validation, blockchain is everywhere.
Banking industry was fast to adopt blockchain, because very soon it realized that this technology could really help it minimize the risk of failure and fraud.
Not only this technology has improved the efficiency of banking sector, but at the same, it also helps it offer new and innovative services without any extra investment. In near future, we will see faster, secure and more transparent payment by banks thanks to this technology.
Currently, some of the world’s biggest stock exchanges are in the midst of testing many new blockchain related solutions. Once fully integrated, these solutions will transform stock trading like nothing before.
For more than two centuries, stock trading has been operating in the same way. It is very slow to embrace new technology. Yes, stock trading is now being done through computers and internet.
Stock trading is now much more faster. But many problems associated with it reman undressed. Stock trading is faster. But that does not mean it is simpler and more transparent.
Settlement process is very complex and takes many days. Blockchain is going to change all these things in the sector.
Technology, Media, and Telecoms (TMT)
Different TMT companies are adopting blockchain differently. But, almost all TMT companies are pursuing blockchain solutions speaks volume about the potential of this technology in this segment.
A survey, done by Delloite showed that TMT respondents to be the most active investors in blockchain solutions.