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By Zac Cheah, CEO, Pundi X
Post the financial crisis in 2008, Bitcoins came into existence and gained a lot of prominence gradually. While the mainstream viability of crypto currency is still speculative, Blockchain has emerged to be one of the first technologies and is expected to do big things – solve problems and open to plethora of opportunities across industries. As people realize its wide applications day by day, Blockchain continues to grow in popularity.
Looking at the year gone by, here are some key notes on how Blockchain and what is expected to change for organizations:
# 1 More traditional companies are looking into blockchain technology
It is not difficult to find a company that uses this cutting-edge technology or the process of implementing it. Organizations are now building capabilities that are needed to push blockchain into mainstream adoption. Banking, Financial services, insurance, supply chain management, healthcare, e-commerce, gaming and academics.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has launched a pilot Global Payment Initiative (GPI) service to join the growing blockchain and fintech services.
A reduction and process simplification are strategic values that blockchain brings to the table. We have seen the adoption of blockchain in payments, remittances, provenance, and traceability in the early days. While there are applications of blockchain that promise to deliver topline advantage to firms, 2018 and 2019 leaders are expected to continue.
# 2 More real-world use of blockchain technology beyond financial transactions
We are also now seeing some real use cases or proof of concepts being rolled out in other industries. Blockchain helps prevent perjury in supply chain management as it allows the record of transactions to be maintained in the form of an immutable ledger.
National Transport Insurance (NTI) has launched a pilot program to deploy blockchain technology for end-to-end tracking of Australian beef exports.
Healthcare is a process of increasing the number of patients involved in the process. Blockchain has found inroads in talent management as well.
SP Jain School of Global Management, India's top ten business school has issued 1,189 blockchain-based certificates to graduates who recently obtained degrees and professional certifications. Ethical blockchain will allow prospective employers and other parties to verify the authenticity of a job seeker's educational qualifications without having to contact the business school.
Blockchain allows secured transactions as it is encrypted and therefore it is a great alternative in areas such as identity management. It is safe to say that it will be instrumental in trade, fraud detection, policy management in insurance, government and public sector as well as food safety and provenance in agriculture.
# 3 Innovative startups will disrupt the industry with blockchain tech
Fast growing startups have been found in the position to be able to disrupt other businesses in their sector. They are headed by executives who are experienced and well-connected in their industries. These are the companies that are often able to apply blockchain technologies in ways that are truly a part of their business model, as opposed to supplementing it.
A 2018 Blockchain Global Survey by Deloitte revealed that the established companies have been established as an existing business paradigm that may or may not benefit from the introduction of this technology.
The emerging disruptors, on the other hand, have business models inspired by blockchain. They are experimenting and building without the constraints of legacy business processes. They focus on what is possible and deal with any challenges as they rise.
# 4 Government bodies have started implementing blockchain
Every technological innovation has to be backed by the Government in some form or another and Blockchain is no exception! It has to be legalized by the Government, more so because its potential applicants such as banking, insurance, pharma etc. operate within the boundaries of the current regulatory norms.
A number of initiatives have been taken across both jurisdictions at the federal and state level. Areas like titles transfer and identification have gained maximum traction for blockchain in the Government sector.
In geographies like Switzerland, Thailand, Canada, the government has successfully deployed blockchain to improvise processes. To name a few, Swiss National Postal Service and Telecom are a Blockchain platform for their own blockchain applications, Thailand revenue department are tracking VAT payments using blockchain. Very recently Dubai is the official government credit bureau announced that they are introducing digital payments to the public sector.
While a lot of blockchains have seen the light of day. In 2019, these initiatives will pick up peace sooner than we know!
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