Enterprises have begun to quickly adopt the blockchain systems to advance their standing in the tech world.
While paired with cryptocurrrency the biggest impact and transformation led by blockchain systems lies in the banking and finance sector of the global economy. It is already said that blockchain will be to banking what internet was for media. Blockchain however is not limited to tech and finance only.
Enterprise blockchain will also disrupt and claim a significant fraction of the $500B+ global enterprise software market.
The effect and reach differs everywhere depending upon the market but blockchain has really optimized the provision of services and the ease of trade across borders. These services include supply chain management systems, crowdfunding, social enterprise startups, transport systems and insurance.
Other industries, currently moving to blockchain, include automobile, oil, gas and gold markets, retail, networking & IoT, cyber security, healthcare and medicinal research and space exploration. While the early signs of the disruption have started to show across these industries, the effect is still premature. Major reinforcements have been made to cloud services and this changes the way data can be organised and utilized.
Blockchain makes transactions transparent, flow of new information and changes in variables easier to analyse and crypto transfer faster. These may lead to correct market failures. Markets are decentralized, clear on certain price points, sometimes markets fail because of barriers in organic price adjustment. Supplying firms on the hand, are not. Companies are centralized i.e run by either government or private individuals. The polar difference can be resolved through the apt usage of the blockchain systems.
Blockchain helps enterprises by:
- Optimizing the data for resource planning; increasing sales and output
- Facilitates speedier service provision or task completion, enabling scalability
- Eradicating human beings, acting as an unbiased third party solution to any company
Blockchain has reduced the performance time and multiplied the transactions per second to unlimited. This technological breakthrough has opened new avenues for broadly, every industry.
The R3 Fintech Consortium includes more than 200 members. Including Barclays, Bank of America, Citibank, Morgan Stanley, Goldman Sachs, JP Morgan, Credit Suisse, UBS, Commonwealth Bank of Australia, Wells Fargo, ING, BNP Paribas, US Bancorp, Deutsche Bank, HSBC, State Street. The list is ever expanding along with their blockchain task force. The rapid expansion is owed to the wildfire publicity it has gotten in several industries in a short span of time.
The car manufacturer, ZF Friedrichshafen, IBM and investment bank UBS are working on building and developing a blockchain-based mobile payment system for the automotive industry. Toyota Research Institute, MOBI and Merck – an anti-counterfeiting pharmaceutical company are among the earliest movers to blockchain in their own industries.
Other IBM enterprises include partnerships with 63 future tech disruption companies. The Armok-based tech giant now has heavyweight blockchain clients like Visa, HSBC, and Walmart. IBM website states:
IBM provides blockchain solutions and services leveraging Hyperledger technologies, including Hyperledger Fabric and Hyperledger Composer.
This Hyperledger Fabric uses “permissioned networks,” this means that some information on the network can be sealed with a password to ensure better security. Blockchain based startups can enable smaller and larger businesses alike to reform and reassert themselves into the market. The platform is a safe bet for sensitive data too.
This allows public data and civil information to be gathered, stored and developed in a secure system enabling governments better census, voting mechanisms, citizen satisfaction levels, knowledge bases and public feedback forums. B2B and B2C firms targeting governments, have come up with tax solutions and ballot replacements for progressive countries.
Blockchain can furthermore help in restructuring and uniforming a rule of law by enhancing legislature and law interpretation.
The applications are unlimited. The ones listed are on the tip of the underlying mighty tech iceberg. The crypto and tech world is on the lookout of new and eccentric uses. Watch out!