Blockchain for business is becoming an increasingly popular option, and for good reason. Security, transparency, and decentralization are all attractive qualities for the following businesses and the markets they represent. Let’s take a look.
BLOCKCHAIN USES: SUPPLY CHAIN MANAGEMENT
Do you know where your goods come from? IBM, Deloitte, FedEx, and BHP want to know. That’s why they are heavily investing in blockchain technology that helps them track their goods, provide quick payments, and reduce costs. Keep an eye on startups like Hijro, Everledger, CargoChain, Skuchain, Wave, BlockApps, Provenance, and IPFS that specialize in this.
BLOCKCHAIN USES: TRADE FINANCE
Blockchain technology is revolutionizing trade finance. One prime example is the relationship between the government of Singapore and banks like HSBC and Bank of America. Using the Hyperledger protocol, this trial replicates the current letter of credit transaction process. Instead of sending paper from one institution to another, the importer submits a letter of credit. The importer bank approves it and then sends it directly to the exporter's bank for approval.
BLOCKCHAIN USES: INTERNET OF THINGS (IoT)
We’re dealing with a security crisis right now, as the current designs for IoT require centralized organizations to control the data. Companies like Microsoft, IBM, Intel, and Guardtime have had enough of this, which is why they are using Blockchain to handle the security of transactions between multiple devices without having to give up an individual's device data. Hence, businesses now only receive the data they need instead of everything.
BLOCKCHAIN USES: FINANCIAL MARKETS
By digitizing assets on a distributed ledger, financial firms can reduce their expenditure and combat competition from other, non-regulated fin techs. Furthermore, they can strengthen their return on assets (ROA) while strengthening their return on equity (ROE) ratios. By digitizing assets, we can create new business models and sources of revenue like: Precious Metals: By digitizing gold bullion into tokens, settlement time is reduced from one or two days to almost instantly, unlocking new segments. National Currency: According to the World Economics Forum, 10% of the worldwide GDP will be stored on Blockchain by 2025. OTC Derivatives: OTC markets provide an opportunity for block chain to increase velocity and expand upon market participation through improved trade administration and market transparency, all while holding the sensitive data on trades. A key startup to watch is Alpha. It powers digital asset networks and provides institutions with a distributed ledger to digitalize, trade, and manage an asset.
BLOCKCHAIN USES: CLEARING AND SETTLEMENT
Traders are particularly excited about Blockchain use in clearing and settlements because it will reduce fees and increase profits for traders of assets. Why? Because without the middleman, ownership is transferred instantaneously. There is no shortage of businesses lining up to incorporate this into their operation. But some of the big names are IBM, UBS, Bank of America, ASX, BNY Mellon, Santander, NASDAQ, SWIFT, Deutsche Bank, DTCC, and Markit. On the startup side, we have SETL, R3, Symbiont, Chain, DAH, and Epiphyte.
BLOCKCHAIN USES: NICHE SOLUTIONS
Casinos: CasinoCoin is an open source, P2P cryptocurrency that is specifically designed to regulate the online gambling industry. Real Estate: Blockchain creates a system where all data involving a property or its owner is easily verified and accessed by a buyer, seller, or trusted third party. Advertising: With advertising fraud and privacy issues running rampant in all corners of the Internet, Blockchain hopes to disrupt the advertising landscape and address these pressing issues. Excited about the potential of Block chain technology yet? This list of uses should be more than enough for you. But once you finish digesting all of this, keep your eyes open. The future holds even more possibilities for this still relatively new technology. As more companies start to adopt it, Blockchain will become a key part of our daily lives.