Weekly Fintech Vol 1 : Unblocking Blockchain

What is blockchain?

Blockchain is a public ledger used to create an unchangeable record of transactions, each linked to the previous one with a timestamp. Each record is called a block, and it contains a verifiable record of each transaction ever made in the system.

 Blockchain is bigger than internet!

 The internet had impacted the world unlike anything else. Now we can see blockchain use cases going well beyond the fiat currencies that exist today. Imagine each transaction be it finance, legal, trading, transportation, records, health, property or anything are transparent in a way that has no scope for fraud. And more affordable by a factor of upto 70%. That's blockchain for you!.

Cryptocurrency is one of the successful use case of blockchain technology. Cryptocurrency hype has given path to blockchain and DLT technology to enter into other streams, industries and sectors of human life. Majority of big business houses have started thinking for the adoption of blockchain technology.

 Can Cryptocurrency replace the fiat currency?

 Fiat currencies will continue to dominate as long as governments are powerful enough to enforce their laws. Fiat currencies exist because the alternatives, such a gold, ultimately failed to meet the demands of the modern world. The replacement of fiat current difficult . The Blockchain is being considered by almost all the governments .

 There is another view that the adoption of cryptocurrencies like BTC,ETH and XRP by people is increasing with exponential speed. Several countries have started accepted bitcoin in exchange of commodities and doing purchases. .

 In short term , the co-existence of fiat and crypto will prevail. If the negativity around crypto reduces , it might become the favourable replacement of fiat currencies .

 Blockchain Use Cases:

Banking: Banks are the critical storehouses of value. As a digitized and tamper-proof ledger, blockchain could inject enhanced accuracy and information-sharing into the ecosystem.

Crypto Exchanges: Blockchain reduces conventional cybersecurity risk by removing the human intermediaries — thus lessening the threat of hacking, corruption, or human error.

Education and Academia: By nature, academic degrees must be universally recognized. Blockchain could streamline verification – reducing fraudulent claims of educational credits.

Cloud Storage: Blockchain cloud storage solutions allow storage to be decentralized — and therefore less prone to attacks that can cause systemic damage and widespread data loss.

Cloud Computing: Blockchain-based processing projects are allowing users to rent their CPU capacities and be rewarded with tokens.

Stock Trading: Blockchain-focused startups are looking to automate and secure the trading processes more efficiently than existing solutions.

Real Estate: Real estate blockchain applications can help record, track and land titles, property deeds, liens, etc. and can help ensure that all documents are accurate and verifiable.

Insurance: Companies like AirBnB provide a way for people to temporarily exchange assets for monetary value. Due to absence of a public record, it has been difficult to insure assets on such platforms. Blockchain features can help developers build trustworthy applications.

Healthcare: Healthcare institutions are unable to securely share data across platforms. Better collaboration could ultimately mean higher probability of accurate diagnoses, higher likelihood of effective treatments and the overall increased ability to deliver cost-effective care.

Supply Chain Management: Supply chains are basically a series of transaction nodes that link products from start to end. With blockchain, as products change hands across a supply chain, the transactions can be documented in a permanent record — reducing time delays and human errors.

Loyalty Programs: Blockchains can help retailers offering gift cards to make those systems cheaper and more secure. With fewer middlemen needed to process the issuing of cards and sales transactions, the process of acquiring and using blockchain-reliant gift cards is more cost effective.

Government Records: Public services is yet another area where blockchain can help lessen paper processes, minimize fraud and increase accountability between authorities.

Retail: Blockchain could decentralize customers’ trust, attaching it more to the sellers on various marketplaces and platforms than to the sites themselves.

Charity: For those making charity, blockchain provides the ability to precisely track where your donations are going, when they arrived, and whose hands they actually ended up in.

Law enforcement: In police investigations, integrity of the evidence is paramount. So a read-only record kept via blockchain could provide the much needed security.

Human Resources: If employment records were stored in a blockchain ledger (and thus free from the possibility of falsification), HR professionals could streamline the vetting process.

Business and corporate governance: Benefits of using blockchain for smart contracts and verifiable transactions can be applied toward making business accounting more transp arent.

3D Printing/Manufacturing: Blockchain can eliminate vulnerabilities and streamline management, helping the 3D printing and additive manufacturing sectors to grow and scale.

Blockchain has achieved exponential growth in the last few years. One of the primary reasons behind its success is that it has provided the world with functionalities that were once unimaginable. It’s without a doubt, that blockchain is here to stay and rule the world!

Disclaimer: The view and opinions expressed or implied herein are writer's own and do not reflector those of the employer/institution who shall not be liable for any action that may result as a consequence of writer's views and opinions

Written By : Priyanka & Rahul