To many people, Bitcoin will be the perfect instrument to disrupt the banking industry as we know it, whether it is on a personal or corporate level. At the same time, the banks are flocking to blockchain technology to improve their services and offer slightly more transparency to their customers. Blockchain technology will be a part of any type of business as things will be taken well beyond the financial sector over the next few years.
Also read: The Value of a Bitcoin: Teaching Your Kids Financial Responsibility
The Blockchain isn’t Just Hype
Every time a new piece of technology comes along, a lot of people will disregard it as empty hype, or a flash in the pan. In most cases, they would be right to do so, but the blockchain has proven to be something completely different. In fact, this particular technology could transform the entire business sector over the years to come, as most its potential use cases have yet to be discovered.
Industry experts who are wary of blockchain technology might argue how the word regarding this technology is only spread by people with a vested interest in the evolution of the blockchain. Whether you want to call these people with a vested interest an evangelist, a believer, or someone who has seen the light, they raise valid points.
During the early years of Bitcoin, a lot of focus regarding blockchain technology has been on disrupting the financial sector. But as time evolved, various startups started exploring the boundaries of the blockchain and applied it to different use cases in other fields. Fighting counterfeit, digital governance, and timestamped tamper-proof copyright claims are just a few of the possibilities.
One thing that could hold back the blockchain trend is its association with Bitcoin. Even though the popular digital currency has been rather stable throughout 2015, and the allegations of criminal activities have subsided, for the most part, businesses and consumers remain wary. The entire concept of Bitcoin is fairly technical, and people tend to lose focus once someone explains the inner workings of cryptocurrency.
At the same time, this confusion is also a driving factor for blockchain technology adoption. As more people take an interest in how this tool can be used to change business models, a better understanding of blockchain technology will be gained. With that new knowledge, the connection with Bitcoin will become clearer to all parties involved.
How It Applies to Your Business
Growing interest in the blockchain is a positive trend, but at the same time, businesses will have to come up with a plan as to how they intend to use this technology. In most cases, the blockchain will play a role in the financial aspect of any business although it could also be used for various other means to make day-to-day operations more efficient.
Santander Bank Head of Innovation Brad Leimer stated:
“We’re talking about mortgages that can be originated and closed within days, and potentially hours, if all of the data that was required for a mortgage was on the blockchain — searching for the title, checking that there are no liens against the property, all of the things that make mortgages take time. If all of the data was on the blockchain, it could simply be tapped into.”
Sharing documents, internal communication, file storage, and record keeping are just a few aspects of everyday business operations that can be improved significantly. The blockchain can play a major role in all of these aspects, and it is up to individual companies to decide how they want to wield this technology for those — or other — purposes.
Smart contracts will be a force to be reckoned with in the business world over the next few years. Rather than involved a human element to act as an intermediary for transactions or agreements, data-driven oracles will take their place. Unlike human counterparts, computers can not be corrupted, making for a far more secure solution.
What are your thoughts about the role of blockchain technology in the business world? Let us know in the comments below!
Source: American Banker
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