The technology most likely to change the next 10 years of business is not the cloud, Big Data, Artificial Intelligence, social media or even robotics. It is the blockchain.
The blockhchain technology is complex, but the idea is simple. It is a vast, distributed ledger that runs on millions of devices and caters to everyone. It moves and secures information, money, titles and anything of value. It establishes trust through mass collaboration and clever code. In a word, it ensures integrity and trust between customers, partners, suppliers and even strangers. Thus, with the technology, it is difficult to cheat.
Today, the financial industry is the most centralized institution. It is also the last to adopt technological revolution. Many financial services are monopolized and are elusive of disruptive innovation. The industry runs on outmoded technology and follows regulations imposed since the 19th century. It is fraught with problems, which make it insecure, and nontransparent to stakeholders. The financial industry makes our global economy buzz; thus, it needs to break free from contradictions and uneven developments.
The blockchain can fundamentally change the financial industry in many ways:
- Reducing costs
- Making complex financial transactions easier
- Making a viable new market from the world’s unbanked
- Improving regulation
- Promoting transparency
Indeed, the blockchain is already making a big impact to the financial sector. The increased security it provides will make it a popular store of money.
The technology holds great promise to revolutionize the financial industry – for good. It can liberate many financial services from the confines of old institution. It will foster both competition and innovation. With the blockchain, people can become more connected. They can participate in financial activities and get a chance to a prosperous life. When everyone shares the same distributed ledger, settlements occur instantly. Billions will benefit, empowering entrepreneurs all around the world.