Blockchain is useful in areas where there are many participants in the process and few intermediaries. So far, it allows mainly financiers to earn money, but it can also be used in other areas. Insurance, healthcare, and government organizations can also benefit from this technology. Let’s take a look at the industries where the blockchain has already found real use.
Six fundamental functions that a modern bank provides: money storage, payments and settlements, lending, transfers, trust operations, and brokerage services. Each of these functions is being transformed, and perhaps already questioned in terms of the quality of processes, namely speed, cost and efficiency. For the processes of each of these functions, there are currently growing projects.
Blockchain is successfully used for international payments, to simplify and reduce their cost. I will give an example from the practice of SAP and its partners. Canadian bank ATB Financial, thanks to the integration of a payment IT solution and a cloud platform, was able to complete a classic transfer to Germany in 20 seconds. The traditional process of processing such a procedure, due to settlements with a counterparty bank and reconciliation of accounts, usually takes from two to six business days.
Another market directly related to blockchain is IT. First, the implementation of the technology requires hardware, clouds, and physical database memory. Secondly, the data processed by the blockchain needs to be analyzed, managed and processed in business applications.
Not all states have managed to evaluate the benefits and prospects of the blockchain, but in the long run it will help the authorities solve many sore issues. Let’s see which ones.
I am sure that tomorrow, when I want to sell an apartment to a good friend, I will not need to visit many institutions and collect papers. You will only need to enter the data on the sale in the next block of the world chain, view the history of the transfer of ownership of the apartment and confirm the sale. What will the numerous state institutions, on which we now depend on for the sale of apartments, do then? I think they will always have enough work. Many existing regulatory systems could be replaced by innovative financial technologies and clarified what he meant by blockchain.
There are many projects and concepts for using blockchain for education around the world. In Singapore, it was proposed to use a public blockchain for issuing certificates and diplomas. As a result, graduates of all educational institutions can receive a transparent and public list of their educational achievements, while universities and other institutions will not spend money on issuing documents, storing records, and correcting them.
The Swiss government has announced plans to simplify regulation in the field of innovative business. Blockchain is responsible for such a noble idea. For example, when crowdfunding up to a million Swiss francs, a startup may not report to the regulator.
In a similar fashion, Scotland plans to develop its own stock exchange on the blockchain. It will be called SCOTEX and will be based on clearing blockchain technology. Thanks to it, trades will be almost instantaneous, with low transaction fees, and sellers will receive their money within 15 minutes after the transaction is closed. The need for unnecessary confirmations of the transaction will disappear, and the number of errors, misunderstandings, and delays in data approval will be reduced to a minimum. Ultimately, a “fast” and “simple” exchange will help Scotland raise its status as one of the financial centers of Europe.
Imagine, yesterday everyone was dreaming about clouds (cloud computing), and today they are already a reality. Such a rather simple idea, albeit in a slightly modified form, turns the world upside down the day after tomorrow. Blockchain has the potential to transform the world.