Blockchain Disruption: 58 Industries Set to Change Forever Part 1
Blockchain does so well with its transparency regarding verifying and recording transactions; other people can easily view this data. This decentralized system requires little to no supervision, helping to prevent fraud. Below is the first part discussing how blockchain will help harness the power of these industries.
The Future of Blockchain Is Near
Banking is probably the most talked-about when blockchain disrupts different industries. But blockchain is set to transform and change many industries forever as we know it, from law enforcement, ride-hailing, healthcare and more. By 2023, $16 billion will move into blockchain companies and technology, which shows no sign of slowing down.
What started as Bitcoin, the ultimate cryptocurrency, the blockchain technology capabilities as a virtual ledger recording all transactions. Bitcoin is seen as something to invest, hold, speculate on future value growth, and then sell to gain a profit. The benefits of this technology are seeping into other industries and will likely create profound changes, altering the world as we know it.
Bye, Bye Banks
When talking about blockchain technology, everyone almost goes straight to banking. Banks have a reputation for tampering with information from customers by making them pay more fees without knowing or removing cash. Blockchain changes everything with its tamper-proof ledgers safeguarding transaction information. This change is the beginning; from a bird's eye view, banks have always served as a hub for storing value, something blockchain is changing.
Recent estimates state that the banking industry is worth $5 trillion between the services banks provide and charge for, transfer payments, and settlement systems. As of 2019, international cross-border transactions generated $224 billion in revenues, and money can be made.
For example, Credit Suisse partnered with Paxos, a New York blockchain startup, in March 2020 to help settle US stock trades. JP Morgan Chase created JPM Coin, which streamlined transactions between financial institutions. This disruption from blockchain proves that the banks see blockchain technology as a viable threat that will change how they do business.
Hedge Funds and the Stock Market
The stock market and hedge fund sectors have been incredibly profitable; blockchain could alter that forever. Many companies have looked to make buying, selling, and trading stocks easier and simpler for anyone. For the last few years, many partnerships have been developing, showing many business leaders in the stock market see the writing on the wall.
For example, TØ.com's Overstock subsidiary has made it easy to enable stock transactions online using blockchain technology. Another example, the tZERO platform, uses a distributed ledger system with existing processes to lower time and costs while increasing transparency.
Stellar acquired a blockchain company called Chain in 2018, which has paved the way to bring blockchain to the Nasdaq stock exchange and part of Citi's banking network. Nasdaq has recently joined R3 to build a Corda software platform to help keep track of all digital financial transactions.
The Future of Crowdfunding
Crowdfunding isn't free from the disruption blockchain brings with it. Crowdfunding allows an ordinary person to invest directly in projects backed by innovative entrepreneurs.
Initial Coin Offerings (ICOs) sell their cryptocurrency-backed tokens just like any other company sells its stocks. For example, BRAID became the first significant feature film financed through a cryptocurrency known as "crowdsale" on the Ethereum blockchain, raising over $1.7M during its campaign.
Hungry for more? Join me each week, where I'll break down complex topics and dissect the latest news within the cybersecurity industry and blockchain ecosystem, simplifying the world of tech.