How is Blockchain Transforming Business Models?
Posted on January 25, 2018
Blockchain technology has penetrated deep into a number of industries in recent years, particularly the banking and financial sectors. Enhanced security, accountability and transparency being the core benefits of blockchain technology, it is fast replacing the traditional business models. Well, business firms are still experimenting with blockchain, and the first phase of its implementation has yielded impressive results.
According to a Forbes, around 90% of the European and North American banks are exploring the technology. Today, security and transparency are two of the key priorities of every organization. Adopting blockchain technology, the organizational mechanism in business firms receives a boost.
Well, you may perceive the situation as a disruption of the traditional setup in business, but in reality, blockchain has tremendous potential for a vast plethora of industries.
Let’s have a look at the changing structure of business models, with the emergence of the blockchain technology.
Higher speed of execution
In the digitized business infrastructure, speed of execution of the projects is one of the key factors that drive the business. Integrating blockchain technologies on the platforms result in higher speed of execution of the projects.
Smart contracts are used in mutual distributed ledgers, according to the rules in each business. Business firms are using computer protocols, that verify, facilitate and enforce the performance or negotiation of a contract.
Besides, business firms can customize this integration on the basis of each contract. They can streamline the transactions by eliminating the intermediaries and counterparties. Evidently, you can execute contracts and trades seamlessly in a fast-paced business environment, as technology replaces the middlemen. At the same time, business firms also benefit from the cost reductions.
Increased productivity in business is one of the factors, leading to the large-scale integration of blockchain technology across the industries. The global blockchain market is fast developing. By 2024, the blockchain industry is likely to cross a valuation of $20 billion.
The internet has been successful in increasing the productivity of organizations and individuals more productive. However, the door for improving the transaction mechanism is still open in the 21st century. Blockchain has the potential to make this mechanism efficient and open, which is an essential operational trait in the internet era.
The technology can cut down delays in delivery, reduce costs, eliminate risks and improve the quality of products and services. As a result, industries are becoming more technically refined, and the marginal reduction of manual labour is evident in the global business setup.
Making the supply chain more efficient
Blockchain Technology can be used to refine the supply chain in business firms. For instance, company manufacturing aircraft might integrate blockchain technology to manage the relationship with its suppliers professionally. The suppliers, producing components and parts of the aircraft, are able to share the same data about new models of the aircraft. This is applicable in all the stages of the designing mechanism, right from planning, conceptualizing, assembling and delivering the parts. Blockchain technologies can also help them in maintaining the machines.
Peer-to-peer transactions across the globe
The evolution of Bitcoin is a perfect instance of the changing structure of peer-to-peer transactions around the globe. However, blockchain technologies have potentials beyond cryptocurrency. It can assist the secure, speedy and cheap fund transfer across the world.
Online payment mechanisms, such as PayPal are efficient in transferring funds internationally, but the transaction fees are high. Besides, certain limitations are also visible in the P2P payment services. These include specific caps on the transfer amounts and location restrictions.
The emergence of cryptocurrency is likely to change the model of transactions of funds across the globe. Today, blockchain technologies are being used by only 0.5% of the global population. This figure is likely to rise in the coming years, with more industries inclining towards the technology.
Various analytic tools, statistics and other evaluation mechanisms have been adopted for forecasting the business environment over the years. Blockchain technologies are likely to change the overall mechanism of consulting, approach, forecasting and analysis.
Various online platforms are coming up with decentralized prediction systems for business firms. These technologies can be effective in placing and monitoring bets in a decentralized way, on any aspect, from sports to stocks. Evidently, the traditional forecasting mechanisms adopted by business firms are facing a stiff challenge from blockchain.
Blockchain Development can cut down the complexity and cost in the operational process of business to a large extent. Today, a large section of industries is following the open-source model in developing blockchain technologies in order to fully utilize the potentials. This technology has the potential to reduce the operational costs of banks by 30%.
When seamlessly implemented, the participants can concentrate on their individual efforts on certain platforms, hardware systems and applications in the industry, in order to support transactions. Blockchain technologies are likely to revolutionize the business models in the insurance sector, ride sharing and public transportation, charity, cloud storage, voting, energy management, real estate, networking and a vast plethora of other industries.
No wonder, an increasing number of industries are embracing blockchain technology.
5 Ways in Which Blockchain Technology is Revamping the Finance Sector
Posted on December 26, 2017
Blockchain has taken the word by storm owing to the transformations it has brought for the businesses across the multiple sectors especially for the Financial services. Every now and then, a fresh announcement makes its way in the banking sector about how it is adopting blockchain technology to transform the large amount of data that they possess.
The perfect combination of cryptography and the databases, the blockchain technology enables multiple parties to have access to a digital ledger simultaneously. Whilst the bankers were a bit skeptical regarding this technology in its initial days, today it stands to be one of the hottest buzzwords in the sector and is attracting millions of people.
In this article, we are going to shed some light on the top 5 ways by which the blockchain development is revolutionizing the finance sector.
- Transparency in Insurance
Some of the challenging factors which lead to customer dissatisfaction in the insurance sector are manual processes, fraudulent claims, legacy underwriting models, etc. Creating policies with the help of the blockchain serves to be one of the best use case for insurance. This not only offers complete control, traceability and transparency for each claim but also leads to automatic pay-outs. It also improves risk modelling and reduces fraudulent claims to a significant level.
- Simplification of the Asset Management
The traditional processes within the asset management are done manually and hence are slow and cumbersome at times. In addition to this, the process is also getting more complex owing to the non-standard investments and cross-border transactions. Since all the parties involved in the trade lifecycle like dealers, custodians, settlement teams, etc. keep a record of their own for the same transaction, a lot of error and inefficiencies can arise. Blockchain technology aims to signify this entire process by providing an automated cycle to all the parties involved in the transaction.
- Automation of Supply Chain
One of the most exciting opportunities that the blockchain technology has brought with itself is the digital transformation of the supply chain. The existing supply chains are complex, slow, and the parties involved in this don’t trust each other. In such a scenario, blockchain comes up as a great solution to remove all these factors as they bank does not have to give the letters of credit, cust down the fees paid to the middlemen and also creates a network of trusted resources.
- Adhering to the Compliance
The financial institutions present in the world need to comply and report the requirements of their local regulator. KYC is a local requirement and needs to be taken care of these institutions. However, this entire process is highly time consuming and due to the lack of automation leaves chances of errors. Blockchain solutions provide a single digital ID information and allows the exchange of information in a secured and a seamless manner. Thus, privacy of the entire data and efficient processing of the information is guaranteed.
- Easy International Payments
The vertical of global payments is gigantic, costly, prone to errors, and cannot be traced at times, which leads to money laundering. this sector is truly in the need of some revamping and this is what blockchain is doing. Santander has become one of the first banks to apply blockchain to its payment app and has enabled the customers to make international payments 24/7.
What’s in Store for Us?
The financial sector has been trying to set up a shared digital environment for recording the identities of their customers and keep them updated at all points of time. Since they have failed to find the right formula, the conflicting demands has always been on the rise. Blockchain comes as a promise to solve this issue as it offers cryptographic protection and keeps all the parties involved in a transaction updated.
Therefore, the key to success lies in making use of the blockchain technology applications to the optimum and leverage the benefits they have to offer.
Blockchain Technology: Empowering the Global Digital Cryptocurrency & Financial Landscape
Posted on November 6, 2017
Cryptocurrencies have taken the world by storm and become a global economic phenomenon powered by the blockchain technology. A cryptocurrency is a digital gold that is safe from dips and highs due to political influence, wars or other economic factors. Cryptocurrencies offer a fast and convenient way for payments and promise an increase in value over time. Cryptocurrencies like Bitcoin run on advanced platforms powered by blockchain technology that takes care of database of accounts, ledgers and transactions. As cryptocurrencies run on agile blockchain technology, there is growing scope for blockchain development, globally.
Read More: Cryptocurrencies growing at a rate of 32.31%
What is Blockchain Technology?
Blockchain solutions can be helpful in storing blocks of cryptographically valid data that cannot be corrupted by users or any other factors. Blockchain technology creates a clean and transparent trail that can be easily accessible but cannot be altered by anyone. This makes it a secure and reliable solution for taking care of modern cryptocurrencies.
The blockchain technology powers cryptocurrencies but use of blockchain is not only limited to this domain, alone. Blockchain is designed as a general ledger for recording transactions and there are multiple rewarding blockchain technology applications in real life. Blockchain technology provides a reliable solution for sharing, validating or endorsing different kinds of data securely and can be used for various purposes involving money, title, deeds, art, music, scientific breakthroughs, intellectual properties and even electoral votes.
As professional blockchain developers are highly-equipped with necessary technical expertise to encrypt sensitive data, one must seek professional advice before thinking of a project involving blockchain development.
The Way Forward: Hurdles & Challenges Faced by Cryptocurrencies
Blockchain technology- the tech behind cryptocurrencies has significantly improved security issues in financial transactions. Despite being backed by one of the most secure technologies in the modern world, cryptocurrencies are still to gain acceptance from mainstream global economy. They face challenges due to regulatory economic frameworks, compliances, regulations, anti-money laundering laws and enforcements. Owing to difference in opinion and no clarity about the jurisdiction which will cover cryptocurrencies, modern economy and nations are wary of cryptocurrencies.
How are blockchain solutions empowering financial institutions & cryptocurrencies through APIs & Wallet Solutions?
One of the most promising blockchain technology applications is the usage of distributed ledger technology that power cryptocurrency wallets. Also, implementation of blockchain technology for delivery of secure solutions that require processing of large amounts of sensitive data is one of the most lucrative domains in the current global fin-tech landscape. These solutions developed by blockchain developers help companies in delivering required applications that facilitate access to massive amounts of data securely. Working just like cryptocurrency wallets like bitcoin wallet, blockchain solutions enable users to send and receive digital information effectively. As cryptocurrencies rely storage of transactional records on blockchain and do not promote physical storage of a currency, blockchain solutions are more secure, fast and free from influences due to change in economic conditions.
Blockchain development is helping financial institutions in solving challenges due to cyber security by providing end-to-end encryption at par with cryptocurrency standards. Also, blockchain developers are equipping fin-tech companies by providing necessary back end infrastructure in the form of Blockchain APIs. These APIs help financial companies in reducing development time and improve their services by focusing on implementation part, alone. This speeds up innovation in financial industry as a company is not required to start from scratch owing to blockchain APIs that also power blockchain bitcoin wallets.
Through innovative and completely secure solutions, blockchain development is really empowering the financial sector in building a more secure and reliable financial world for current and future generations.