The very nature of technology is innovation, and the best of those innovations are the ones that create a revolution.
One such innovation is Blockchain which promises to tap every industry in the near future. The prophetic entrepreneurs and the out-of-box thinkers who are keen to expand and grow the digital business possibilities are tracking the flow of this transformation in a big way. Built on distributed, encrypted consensus-based networks, Blockchain has already begun to pave the way for new approaches to financial transactions.
The year 2018 promises to expose us to the all-possible incarnations of the Blockchain technology. He who seeks the potential of this technology is the true winner.
So, what is a Blockchain and what makes it so special?
“Blockchain is an Economic paradigm shift”
Blockchain establishes a peer-to-peer network of cryptographically secured, shared, immutable, permissioned and replicated ledgers that expands trust and transparency, reducing cost, time and friction between transactors – all without relying on a central authority!
A single truth that prevails today is that Blockchain can bring change and improve systems for better economy. The technology shows an exceptional level of innovation by enhancing productivity through a wide range of applications and surpasses all existing approaches of any public or private transaction.
How Does a Blockchain work?
Every transaction is initiated with Smart Contracts – a programmed logic of the transaction. Smart contracts are the digital contract of any transaction encoded in Blockchain. It consists of a set of tasks which can execute on its own without any middlemen interference. It keeps track of the terms of an agreement and carries out every step towards the fulfilment of that transaction. Smart contracts encoded in Blockchain technology will be used by more than 25 percent global organisations by 2022, estimates Gartner.
What are the Key Components of a Blockchain?
Proof of the Rapid Adoption of Blockchain (Latest)
The attractiveness of Blockchain can well be gauged by the mere attention that it has been getting. Have a look at the latest Google trends result for Blockchain search. This can be the first step towards estimating the popularity of Blockchain. You can see that this technology started picking up well from 2016 and rose to a phenomenally good level in 2017.
With Bitcoin trading upwards of $10,000, the total market capitalization of cryptocurrencies hovered around $300B by the end of November 2017.
From big players to small startups, several organizations are taking advantage of this technology. Top players like Walmart and Pfizer have completed successful blockchain pilots.
The journey of Blockchain has already begun worldwide…
- The small European country of Estonia is gearing up to become the first crypto-country in the world. The country is already using Blockchain technology.
- Aside from Estonia, Slovenia is again vying its place as an early adopter of this technology. Slovenia is home to one of Bitcoin largest exchanges
- The UK government is currently piloting a Blockchain-based system for the payment of health benefits claimants.
- Russia is set to create a special national system using Blockchain called Ethereum Russia.
- The government of China developed a prototype of a prospective national cryptocurrency in the country since June 2017.
- The government of Australia is exploring ways to replace its separate passport and birth certificate databases with a single Blockchain-based system.
- The Kingdom of Bahrain is dealing with Singapore’s central bank for blockchain adoption.
- In India, experiments are already on and the technology is generating significant interest across a wide range of industries.
- In the United States, the blockchain technology is disrupting as a key business focus for several companies across all industries.
Let us see few smart, early pickers of the Blockchain technology:
- Top CPG and food companies Walmart, Nestle, Unilever, McCormick, Tyson, Kroger, McLane, Driscoll’s, Dole, and Golden State Foods recently signed a deal with IBM to adopt Blockchain technology to enhance their supply chain process.
- Blockchain is dramatically adopted by several Banks and financial institutions.
- Goldman Sachs calls Blockchain as the “New Technology of Trust.”
- J P Morgan’s Quorum – an open source blockchain platform built on the shoulders of the public Ethereum project is believed to be its next generation payment solution.
- Bank of America, the second largest bank in the United States is one such initiator that started progressing with Blockchain applications. The bank recently tested a new version of the Ethereum-based application that automates the process of creating a standby letter of credit that is encoded on a blockchain. Letters that are otherwise sent manually are being translated into smart contracts on a private version of Ethereum blockchain. The bank also holds Patent for Cryptocurrency Exchange System that allows its customers to convert funds from one cryptocurrency to another.
- Microsoft is working on technologies that can speed up blockchain and its adoption.
- IBM is highly focused on enabling Hyperledger adoption to its customers and the company has an extensive list of blockchain clients across industries.
- Insurance is built on trust and transparency. Several insurance companies are exploring the possibilities of this technology for the Insurance sector. Standard Chartered Bank and AIG partnered with IBM to pilot first multi-national insurance policy using Blockchain. Keep track of the policies, automate policy payment, increase speed and authenticity of the payment, and enhance customer experience through reduced friction.
- USFDA is all set to define a secure, efficient and scalable exchange of health data using blockchain technology.
- Wikipedia‘s co-founder Larry Sanger wants Blockchain to replace the free online encyclopedia.
- Blockchain has the potential to transform healthcare in general and the pharmacy supply chain specifically.
Blockchain Distributed Ledger Market is Maturing
Blockchain was a rich topic of discussion in 2017. The technology is evolving rapidly, triggered by the initial interest in bitcoin that uses distributed ledger technology to generate trust in any transaction without the intervention of any middleman. Commercial activities are getting re-invented with Blockchains enabling more-fluid business processes to be conducted in diverse ecosystems. Both individuals and organizations are keen on exploring this technology.
Core Building Blocks are Rapidly Maturing
The global business landscape is in the process of getting away with incompatible protocols as there is an increasing focus on inculcating common standards with distributed ledger frameworks by several consortia.
Blockchain is Seen as the New face of Decentralization
Traditionally, all trusted advisors created a layer of protocols and every transaction was made to pass through such protocols. Such governance exhibited low-level guarantee and so is prone to manipulation. Blockchain-based governance is trustable. Here, every function is codified and sealed cryptographically in blocks and each block is linked to the respected related blocks. Blockchain codification is the shift towards a decentralized system. Two key factors that support this statement are that blockchain operates in a peer-to-peer network and manages through decentralized ledger with distributed computing technology.
Blockchain is no more in its nascent stage. The technology is growing rapidly. Early investors can take complete control. The global Blockchain distributed ledger market is likely to touch $5,430 Million, by 2023.
If you assume that the future of Blockchain is only in the financial sector, then you are wrong. As this technology brings transparency and immutability, the impact has been affecting every industry. Right from buying your groceries till maintaining your healthcare records is going to be simple and transparent. The future forms are unimaginable.
Now you know Blockchain is a technology that will be embedded in every digital business of the future.
The year 2018 is sure going see Blockchain as a megatrend.
So, what exactly you should do next?
Approach OpenXcell’s Blockchain development team with your business case.