Bitcoin has taken the entire financial world by storm. While some of its proponents claim it is the digital gold, others view it as a global digital currency that is going to revamp the entire financial workflow of the world. But beyond bitcoin, there is something else that we probably need to look out for. The technology that has given us the global monetary system of bitcoin, blockchain.
Over the past few years, blockchain has gained much attention and a lot of capital has flown into this space. A lot of research is being made in order to find the use-cases of this technology in areas other than finance. BlockPublisher recently got in touch with the Chairman and Chief Executive Officer of DLT Labs, Loudon Owen, as he gave his insight regarding blockchain technology overall. In reply to the question regarding industries which can benefit from blockchain, he said:
The world is spinning at increasing speeds from the amount of information that is flowing, which may explain either global warming or the warping of our time honored social institutions. As information is created and consumed at an accelerated rate, the back offices that were built for a different world are collapsing. Security breaches and bloated costs are the smoke signal warnings. Imagine trying to have a Formula One race on a dirt road in the mountains that was carved for monks and donkeys that walk in single file. It just doesn’t fit.
Loudon hinted at the rapid pace at which the information flow is taking place right now in the modern world. Adding on to it, he said:
As organizations and governments struggle, distributed ledger tech (which is at the vital innovation here) delivers a solution. It turbocharges the legacy systems. It keeps out the creeps so your secrets are secret (security), and gets everyone on the same page who should be (trust & transparency). We are seeing some of the world`s largest enterprises jump on board rapidly, particularly on private blockchains which means the usual permissions and protections are in place. Anyone who manages mountains of data, and does not work alone in a cave but interacts with other parties, should look at it. We are finding that particularly in supply chain there is an opportunity to integrate and save a fortune (Chilean design, Rwandan raw materials, US patents, British component manufacturing, US assembly, global sales…).
The aspect of trust and transparency give blockchain the importance that it is carrying right now. One can only imagine the industries that can take advantage of these features. Various workflows, whether industrial or governmental, can use blockchain to make themselves more efficient.
Summing up the answer to this question, Loudon said:
The more sexy and volatile area of course is cryptocurrency, which has become the financial equivalent of an amusement park roller coaster at light speed. This is part of the world of `permissionless’ applications and new types of value exchanges. Over time, this entire field will only grow, and there are infinite variations. Any organization trying to track and exchange value in large volumes, but at a very low cost, or on a branded basis, should look at distributed ledger tech. Running a multi-billion clothing brand? Think about how your loyalty program works, how to communicate and pay a global workforce where financial systems are inconsistent, how to get your product to your retailers on budget and on time, and how to help your customers feel they are special…tokens, integrated loyalty, international fund transfers and so on…all for pennies compared to what other tech costs.
The prospects offered by blockchain seem to be game-changing. It only seems to be a matter of time before we see it revamping various workflows across the world.